Filecoin Review 2021 – [Are All Its Decentralized Features Worth It?]

by Gordon James

The filecoin review is a long one, and that is because the filecoin project (read: protocol) is so ambitious. This article will give you a good idea of what the filecoin team is trying to do, and why it is so important. It will also discuss how the filecoin project is better than the other projects mentioned in this article, and why.

Filecoin is a new blockchain-based decentralized storage protocol that is seeking to compete with the likes of Sia and Storj. Launched on March 29, 2017, Filecoin has exploded in popularity since then, and investors have pumped $257 million so far into the project. This is despite the fact that Filecoin has only been around for about one year, and has only fully been supported by the mainnet (the version of the protocol for which data is stored) for less than two months.

Filecoin is a decentralized cloud storage platform that uses a cryptocurrency token – Filecoin (FIL) – to incentivize users and incentivize nodes. Filecoin was launched by Protocol Labs in October 2017, and now has more than 180,000 users.

It’s been nearly four years since Filecoin’s ICO and seven months since the network launched. Not many projects managed to get out of the ICO madness of 2017-2018, but luckily Filecoin was one of those few much-needed projects. Unlike other cryptocurrency projects that focus on the crypto space itself, Filecoin focuses on the internet itself. Given that the project is relatively new, it is not surprising that the price of the FIL, Filecoin’s native token, has only increased slightly. But this does not mean that the project has run out of steam, quite the contrary. What Filecoin is trying to solve could completely revolutionize the internet and provide more security and control for users. Furthermore, Filecoin’s role could allow this new internet to be used between planets, literally! How is this possible, and what is Filecoin trying to accomplish? Is this project really that good? This is the question that this Filecoin Review article will attempt to answer. In this review, we look at the dynamics of Filecoin and its increasingly important role in internet reform, and why you should consider adding some FIL tokens to your wallet.

What is Filecoin?

According to their website, Filecoin is a decentralized storage network. As the name suggests, the project is focused on decentralized data storage. The core network stopped on the 15th. October 2020, after more than three years of development. The project was initiated by a well-known research and development company, Protocol Labs. Protocol Labs is also behind the development of the InterPlanetary File System or IPFS, Multiformats, Protoschool, etc. Protocol Labs’ main goal is the complete decentralization of the entire Internet. Currently, the Internet is only managed and supported by a few technology giants. All Internet content is stored on central data servers, which can be a single point of failure. This means that if these data servers are hacked, if they are somehow disabled, or if a malicious technology company wants to manipulate them, a significant portion of the Internet is exposed to each of these scenarios. In return, you get a faster and higher quality internet connection at a very low price. Protocol Labs has therefore laid the foundation for two projects that address these questions. The first project is the Interplanetary File System, or IPFS, which was launched in 2015. Without going into technical details, it allows anyone to receive and publish web content. The difference between IPFS and traditional centrally managed HTTP is that IPFS uses CAS (Content Addressable Storage), while the latter uses LAS (Location Addressable Storage). IPFS adds a content identifier to all data and files and addresses the file to its content, not its location. In addition, IPFS relies on a network of nodes rather than central servers, making it fully decentralized. Most, if not all, web content is not stored on a single server, but is distributed across the network. The nodes installed in a network can lead to certain files or data getting into the hands of people who are investigating them. This serves three main purposes:

  • Make sure you have a stable internet connection.
  • Therefore, it is difficult to censor the content.
  • Can speed up your internet experience when you are away or disconnected from the network.

With this decentralization, users will one day be able to enjoy a high-quality experience on other planets. After all, there is no need to rely on centralized servers that are too far away for communication and connectivity. For example, one or more nodes are sufficient. B. on Mars that have the file or content you are looking for, so you can research and find it. Filecoin Review 2021 – [Are All Its Decentralized Features Worth It?] Don’t get overwhelmed by the above program. IPFS is designed to work like the Internet we are all used to. This means that the interface of the website looks like any other HTTP content. For more information on the IPFS, click here. And what does any of this have to do with Filecion? This is the second project of Protocol Labs. Filecoin is designed to incentivize those who participate in the IPFS network by rewarding them for storing and retrieving data and files via the blockchain and tokens. This puts it in direct competition with powerful cloud storage technology giants like Amazon and Google.

How does it work?

Filecoin is similar to most other typical crypto-currencies. It has its own blockchain built around IPFS, its own token, a consensus mechanism and rewards from the mining industry. The blockchain itself does not store any data or files. It stores the transactions that take place and records the balances of the addresses in the portfolio. The blockchain also stores information and agreements between miners and customers who want to use Filecoin storage for specific data they want to store for a certain period of time. Uniquely, Filecoin uses not one, but two consensus mechanisms. The first is called proof of replication (PoRep), which is proof that a particular data element is stored with the miner. The miner must write the proof of concept on the blockchain after entering into a data storage agreement with the client. The PoE evidence establishes a link between (i) the data itself, (ii) the minor agent performing the sealing, and (iii) the time when certain data was sealed by a particular minor. The second consensus is called Proof-of-Spacetime or PoSt. This process proves that the miner still keeps this data fragment for the client. To do this, the mechanism presents miners with cryptographic tasks that they can only answer correctly if they actually have a copy of the sealed data. Miners perform two types of tasks;

  • WinningPoSt is used to prove that the minor has a copy of the data at the exact time it was requested.
  • WindowPoSt is used as evidence that a copy of the data has been stored continuously over time.

To mine filecoins, a miner only needs a good computer, a reliable internet connection and sufficient hard drive space. Unlike traditional mining, miners compete with others for private storage for different customers, which is called storage mining. For more information on hardware requirements for Filecoin mining, click here. In addition, minors must put FIL tokens at risk to participate in the project and to encourage minors to continue to act with integrity. Violations or malicious acts may result in a reduction. To ensure the long-term growth of the network, the reward per block and per Filecoin depends on the size of the network. The more the network grows, the more tokens there are per block. The compensation a miner receives is proportional to the amount of storage he delivers to the grid. For example, if a miner contributes 1% to the storage for the entire network, it gets 1% of all block rewards. The miners receive both a basic salary and commissions. By simply participating in the Filecoin network, miners are rewarded per block. The FIL tokens that the miners receive from the customers for storing their data constitute the commission. Depending on the state of the network and the size of the hard drive, Filecoin miners can earn quite high commissions for storing data for customers.

How can a client use Filecoin?

So how can the customer store their data? Let’s take an example. Filecoin Review 2021 – [Are All Its Decentralized Features Worth It?] Let’s say a customer has a certain amount of data and files that they want to store somewhere. This client must go to the decentralized storage application (Dstapp). They are similar to any decentralized application found on Ethereum and many other blockchain platforms. The difference is that these decentralized storage applications are built on top of Filecoin, and since Filecoin is based on IPFS, these applications behave more like regular websites. Moreover, using these web3 applications can be done without the use of a cryptocurrency wallet like MetaMask. A list of decentralized storage applications offered by Filecoin can be found here. These Dstapps allow you to define the terms of your storage contract, including the length of the contract, the amount of storage you need, how often you want data replicated during storage, and how much you are willing to pay in FIL tokens. Once the contract is submitted, the minor will take possession of the contract. If he accepts the terms, the acceptance of the contract is recorded in the blockchain, along with the balance of FIL tokens in the wallet of the client and the miner. During this time, the network will require the miner to continually demonstrate that he or she still contains stored data. Once the deal is closed, the client sends a signal via Dstapp to the network where the miners retrieve the data for the client. The customer pays these FIL miners, and depending on the size of their need, the customer determines how much they are willing to pay to get the minor as quickly as possible. Then all the customer has to do is download the file to their computer, and that’s it! That’s it.

Tokenomics

Filecoin has robust tokenomics, and FIL is their native token. The maximum reserve is 2 billion. Interestingly, this is a deflationary token, as FIL tokens are burned when network fees are paid or when a miner encounters mining. In economics, let’s assume that the demand for FIL remains constant, the lower the supply, the higher the price. Of the 2 billion, 70% was allocated to Filecoin miners. 15% goes to Protocol Labs, and 7.5% was distributed to investors during the ICO. Filecoin Review 2021 – [Are All Its Decentralized Features Worth It?]

Control

Filecoin has the Filecoin Enhancement Protocol, which provides a basic set of policies across the network. While there is no explicit mention of the principles the network will follow, it is expected that the community will establish them in the coming months. Essentially, the Filecoin Improvement Protocols, or FIPs, are a mechanism for community members to make, discuss, and approve changes. These REITs can be divided into three categories:

  • Technical PIFs
  • Organisational PIFs
  • Recovery FIP

Founder

As mentioned earlier, Filecoin was developed by Protocol Labs. The founder of Protocol Labs is Juan Benet, an American computer scientist who studied at Stanford University. Since its founding in 2014, Protocol Labs has grown from a few dozen employees to 130 today.

Who is this product intended for?

Filecoin is for anyone who wants to participate in the network by becoming a miner and providing data storage. In turn, anyone (individuals, institutions, other decentralized applications, blockchain platforms) who wants to store their data or files in a secure repository can use the Filecoin network.

Contest

Filecoin competes not only with traditional cloud storage giants, but also with other decentralized data storage/file protocols such as Siacoin and Storj. So how can it compete with them? Siacoin and Storj seem to offer a decentralized storage space that provides an economic incentive for anyone with extra disk space to use it to make money. Filecoin is just one piece of the puzzle that Protocol Labs is putting together. Filecoin not only wants to store data, but also to become the base layer for all data and files in Web3 applications, including data from other cryptocurrency blockchains. This is the main reason why it took Filecoin more than three years to launch its main network. With such an ambitious goal, Filecoin is well suited for rapid growth. However, the Achilles’ heel is the lower barrier to entry of Siacoin and Storj in terms of functionality and market share. This may limit Filecoins’ ability to expand. Unlike its competitors, however, Filecoin has a huge military fund. The ICO raised a whopping $257 million, 10 times more than Siacoin and Storj combined! This will undoubtedly help with marketing, expansion, partnerships and major upgrades. In addition, the Filecoin network also has a storage capacity of 5,191 EiB and 2,240 active miners to date. That’s a huge amount of storage space available, and it’s important because it means you can get storage for a relatively good price. When the number of miners exceeds 2,000, it is more likely that they will compete to give you the best price for your data storage.

Other relevant information

The Filecoin Foundation

Shortly after the launch of the main network, the Filecoin Foundation was established. Their philosophy is to help the Filecoin community with problems or questions and to provide advice, coordination and financial support. They help coordinate all Filecoin stakeholders, including miners, users, and developers. All changes to Filecoin are made via the FIP process. The board of directors and advisory board include many well-known personalities who have been active in the crypto industry for a long time.

Filecoin Plus Principles

One of the developed FIPs is FIP 0003 or Filecoin Plus Principles. This PIF is important because it solves an unexpected problem for Filecoin. As mentioned earlier, storage miners are rewarded for using computing power and storing client data. The problem is that there is no way of knowing whether the stored data comes from a single third party or from the minor himself. This makes it easy for miners to gain an advantage by filling hard drives with their own data. These outages are expected to worsen as the network grows. Filecoin Plus is designed to create a level of social trust so that bad transactions like this don’t happen.

Ecosystem Enlargement

The decentralized data warehouse project continues to build partnerships and collaborations, but the ecosystem is less than a year old! In October 2020, Filecoin partnered with Live Peer to enable decentralized video delivery via IPFS. Last December, the Huobi Exchange announced that it would invest $10 million in the research and development of Filecoin. Recently, Block Dream, founded by OKE, followed suit by committing another $10 million to support the Filecoin ecosystem. The 29th. In April 2021, Filecoin announced that it would support NFT. Safe, free and decentralized storage for NMTs! I think you get the point.

Filecoin Review – Conclusion

Filecoin is one of the few crypto-currency projects trying to change the world, and it really has something to show for it. Given that the current state of the internet and all data-driven data is highly centralized and vulnerable to hacking and disruption, this makes Filecoin even more valuable. It took Protocol Labs many years to develop Filecoin, and despite some hiccups, this is not surprising given the scale of the project. And while the project has certainly accomplished a lot since it started, it still has a long way to go. Partnerships and funding are great, but they mean nothing if the project is used for mass implementation. This doesn’t seem to be a problem at the moment, but the project will have to work harder if it wants to achieve its goal of becoming the world’s leading data repository for the decentralized Internet.

FIlecoin Revision
  • Value
  • Sociability
  • Quality
  • Features

For

  • Cohesive and professional team
  • Significant equity funding
  • Ranked in the top 30 of the global crypto-currency market.
  • Reliable tokenomics
  • Be prepared for a long-term investment.
  • The network is growing

Cons

  • Competition with other cloud storage providers
  • Rely on users’ willingness to use additional storage.

Filecoin is a new cryptocurrency that was launched in June 2018. Its initial coin offering (ICO) raised $257 million earlier this year, making it the most successful ICO in history. Filecoin is an open-source blockchain that stores and distributes large files, known as “metadata.” Filecoin incentivizes people to store and distribute their files on the network, by compensating them with the cryptocurrency filecoin (Filecoin) for their activity.. Read more about filecoin competitors and let us know what you think.

Frequently Asked Questions

Is Filecoin a good investment 2021?

Filecoin is a decentralized file storage platform that promises to revolutionize the world of file hosting. It is a new cryptocurrency that is backed by a decentralized network of storage nodes. Filecoin will basically function like a new type of cryptocurrency and help to store data on the blockchain. Because it is decentralized, it will be faster, cheaper and more secure than current cloud storage services. I am going to begin by addressing the elephant in the room: what is Filecoin? Filecoin is a decentralized cloud storage network that allows you to store data on computers around the world. This data can be anything — videos, files, documents, and even programs. The reason Filecoin is so interesting is that, under the hood, it is just like other cloud storage applications like Dropbox. The difference is in how the data is stored. Since Filecoin is a decentralized network, I could put my files on Filecoin in Germany and have them be accessible to me in the US.

Why does Filecoin have value?

Filecoin first came on the scene in June 2018, and has since captured the attention of the crypto community with its promise of decentralized cloud storage. It’s still an up-and-coming project, but many believe it will play a significant role in the future of the blockchain industry. Filecoin is a network that monetizes personal storage through blockchain technology. By enabling users to rent out their unused hard disk space and uploading it to the Filecoin blockchain, Filecoin has managed to attract a lot of attention.

What is Filecoin worth?

The Filecoin ICO is the first decentralized and incentivized cloud storage network, which is meant to make storing data more efficient and cheaper than centralized cloud storage providers. The value of Filecoin is measured in XFC. Filecoin is a new form of cryptocurrency. It’s an Ethereum-based blockchain with a new digital currency called Filecoin. Filecoin was designed to make cloud storage more efficient. Instead of going to the cloud to save files every time they’re needed, Filecoin’s network allows people to pay for bandwidth instead of storage.

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