What is Filecoin?
Filecoin is a public, open-source cryptocurrency and digital payment system that aims to be a blockchain-based cooperative digital storage and data retrieval method. Protocol Labs created it and its architecture is based on the InterPlanetary File System which allows users to rent out unused hard drive space.
The transactions are registered using a blockchain mechanism. It includes a shared storage device with the aim of “storing humanity’s most valuable data.”
Filecoin is an interactive protocol with a blockchain that tracks the network’s members’ contributions and transactions in FIL, the blockchain’s native currency. Proof-of-replication and proof-of-spacetime are also seen in the blockchain.
How does Filecoin work?
The protocol of Filecoin is based on IPFS, a distributed storage mechanism that aims to bind a network of peers that each possesses a portion of the total system’s data.
Filecoin is a reward layer atop IPFS that allows users to be charged for their storage rather than using the existing voluntary storage scheme.
The blockchain, retrieval nodes, storage nodes, and a native token make up Filecoin (filecoin). Storage nodes are miners that keep locked backups of data they’ve agreed to keep, as well as the whole blockchain log of consumer transactions.
Retrieval nodes retrieve and send files to users without requiring users to contribute to data storage or have storage proofs.
Through pledging storage, committing collateral, and adhering to the proof-of-spacetime protocol, all storage miners shall participate in the Filecoin mining protocol (PoSt).
PoSt enables a customer to determine whether or not a storage service is currently holding outsourced data for a specified period of time.
There is no dedicated verifier in this scheme to inspect the storage offered by miners, although every network member may technically validate the miner’s obligations.
Storage miners can even mine new blocks and collect a block incentive in exchange for transaction fees.
To allow miners to invest in storage rather than computing resources, the chance that the network elects a miner to build a new block is proportional to the amount of storage they currently have in addition to the rest of the network. Each miner must apply a proof-of-spacetime to the network while mining a block.
What is the History of Filecoin?
The project began in August 2017 and collected more than $200 million in less than 30 minutes during its token sale. In terms of market capitalization, it is listed 45th among all cryptocurrencies.
Filecoin is a shared data storage system. Unlike centralized cloud storage firms like Amazon Web Services or Cloudflare, Filecoin uses its decentralized structure to safeguard the confidentiality of a data’s venue, rendering it readily retrievable and difficult to censor.
How do I hold Filecoin?