What is Filecoin (FIL)? Overview of Filecoin Cryptocurrency

What is Filecoin? Filecoin is a decentralized data storage network. Filecoin ensures users’ files are stored reliably over time at a favorable price.

Let’s find out what is special about this project with Weakhand in this article.

What is Filecoin?

Filecoin is a decentralized storage network that uses proof-of-replication and proof-of-spacetime consensus mechanisms to ensure data integrity and security. Whether. Filecoin is designed to provide a secure and reliable way for users to store and retrieve data, while also providing a mechanism for miners to earn rewards for providing storage resources to network.

Filecoin creates an open marketplace where anyone who wants to store their data or get paid to store user data can join Filecoin’s network.

Filecoin Operating Model

The main components participating in the Filecoin network include:

• User: is an individual or organization that wants to store data on the Filecoin network. They can create storage transactions with storage providers to store their data and can retrieve their data by creating retrieval transactions with data retrieval providers.
• Hosting Provider (storage providers): Responsible for storing user data and receiving rewards in the form of FIL tokens (Filecoin’s main token). To demonstrate data integrity, vendors must Proof Of Replication (PoRep) to prove they received all the data and encrypted it.
  Once a transaction is triggered, the storage provider will use it Proof of Spacetime (PoSt) to prove that they are still storing user data.
• Retrieval Provider (retrieval providers): Responsible for providing quick links to retrieve data into the file requested by the user and receive FIL token rewards

In order to avoid bad behavior that harms the network of data storage and retrieval providers, participating in the network requires an amount of collateral (usually FIL tokens) and is fined depending on the severity of the behavior. because of that.

Below is an overview of the operating model on the Filecoin network:

1. Users upload data to the network by creating storage agreements with storage providers. Users specify how much data they want to store, how long it will be stored, and the price they are willing to pay.

2. Storage providers bid for storage agreements by offering to store data in exchange for payment provided by the user. The winning hosting provider is chosen based on lowest price and highest reputation.

3. Once the storage agreement is accepted, the user will pay the storage provider in Filecoin (FIL) tokens. Storage providers provide storage on the Filecoin network.

4. Data is stored in a decentralized manner, meaning it is distributed across multiple locations and is not controlled by any single entity. This helps ensure data is safe and cannot easily be lost or deleted.

5. When users want to retrieve their data, they can create a retrieval agreement with a retrieval provider. Filecoin retrieves data from their storage infrastructure and returns it to users.

6. The user confirms and pays a fee to the retrieval provider.

Overall, the goal of Filecoin is to provide a decentralized, secure, and reliable way for users to store and retrieve data, while also providing a way for miners to earn rewards for mining. Contribute storage resources to the network.

What is the Difference of Filecoin?

All user data before being transmitted to the archivers is copied and divided into small parts. Each provider only stores 1 portion of user data. When users want to retrieve data filecoin will synthesize data from archives and create a complete version. This helps keep user data as secure as possible.

Filecoin creates an open market where anyone can participate in the Filecoin network. All users only need to be connected to the internet and have free disk space to become a hosting provider to make a profit, this helps attract more participants making the network strong and growing. more developed.

Filecoin offers competitive pricing, as users can choose the storage provider with the lowest price and highest reputation to store their data.

Filecoin uses a proof-of-replication consensus mechanism to ensure data integrity and security. This means that storage providers must demonstrate that they are storing and replicating data as required to earn rewards. Users can also retrieve and check their data anytime they want.

Core Team

Filecoin was developed by Protocol Labs – a company specializing in research, development and implementation of network protocols. Some members of the Filecoin core team include:

Juan Benet: Founder and CEO of Protocol Labs, and creator of the Filecoin project.

Colin Evran: Head of the Filecoin and Protocol Labs ecosystem development team.

David Dias: Co-Founder of Protocol Labs, and chief engineer at Protocol Labs.

Investor

Some notable funding rounds for the Filecoin project include:

• Seed round: In 2017, Protocol Labs raised $2.2 million in seed funding for the Filecoin project from a group of investors, including Sequoia Capital and Andreessen Horowitz.

• Private Sale: In 2017, Protocol Labs raised an additional $52 million through a private token sale, which was used to fund the development of the Filecoin network.

• Public Sale: In 2020, Protocol Labs conducted a public token sale for the Filecoin project, which raised over $205 million. This funding was used to further support the development and launch of the Filecoin network.

Tokenomics

Basic information about Filecoin token

• Token Name: Filecoin

• Ticker: FIL

• Blockchain: Filecoin

• Contract:

BEP20: 0x0d8ce2a99bb6e3b7db580ed848240e4a0f9ae153

Hoo Smart Chain: 0x0bf85d3b0c9ebcc282fde0591882d12e57e700b3
HECO: 0xae3a768f9ab104c69a7cd6041fe16ffa235d1810

• Token Type: Utility, Governance

• Total Supply: 1,970,978,207 FIL.

Token Allocation

• Foundation: 5%

• Team and Contributors: 4.5%

• Protocol Labs: 10.5%

• Investors: 10%

• Miners: 70%

Token Release

• Investors: Minimum 1 year (advisor from Pre-sale), minimum 6 months (public sale).

• Protocol Labs: 6 years, vesting.

• Foundation: 6 years, vesting.

• Miners: Release half in 6 years.

Token Use Case

Filecoin is a token used to:

• Incentivizing storage: Encourage storage providers to contribute storage capacity to the network.
• Use in Filecoin network: The Filecoin token is used to facilitate transactions within the network, including data storage and retrieval. Users can pay for storage and retrieval services using Filecoin tokens, and miners can earn tokens by providing these services to the network.
• Governance: Allows holders to participate in the voting process in the network.

Exchanges

FIL can be traded on both DEX and CEX exchanges such as PancakeSwap, Binance, Coinbase, Kucoin, …

Information Channel of Filecoin Project

• Website: https://filecoin.io/

• Twitter: https://twitter.com/Filecoin

• Medium:

summary

Currently, the decentralized storage segment (Decentralized Storage) has not really developed strongly but is an indispensable component in the crypto market. Filecoin is one of the pioneering projects in this field and has achieved certain success by attracting more than 20,000 users with more than 7,600 TiB of storage capacity. The main challenge for Filecoin is to prove their reliability as a hosting provider and as a supporter of data-intensive Web 3 services.

Hopefully after this article, everyone will understand what Filecoin is?