Altcoins: Filecoin (FIL) - What Is It? - A Deeper Look Into the Filecoin (FIL) Platform
Aa
Share
Summary:
- What is The Filecoin (FIL) Platform and how does it work?
- Advantages of the Filecoin exchange.
- Filecoin’s past, present and future price positions.
Read next: Altcoins: GALA (GALA) - What Is It? - A Deeper Look Into the GALA (GALA) Platform
The Filecoin (FIL) network
The mission of Filecoin is to "store humanity's most critical knowledge" in a decentralized database. The project's initial coin offering (ICO) garnered $205 million in 2017, and its mid-2019 launch date was once anticipated. The debut of the Filecoin mainnet, however, has been postponed until block 148,888, which is anticipated in mid-October 2020.
The project was initially introduced in 2014 as an incentive layer for the peer-to-peer storage network known as IPFS. Filecoin is an open system that is supported by a blockchain that keeps track of the promises made by users of the network. Transactions are made using FIL, the blockchain's native currency. Both proof-of-replication and proof-of-spacetime are the foundations of the blockchain.
Filecoin Uniqueness
Decentralised data storage is the goal of Filecoin. In contrast to centralised cloud storage providers like Amazon Web Services or Cloudflare, Filecoin uses its decentralised nature to safeguard the integrity of a data's location, making it simple to retrieve and difficult to censor.
Decentralised storage platforms like Filecoin make the internet more accessible to people all around the world while also enabling individuals to be their own data custodians. Participants in the Filecoin network are incentivized to act honestly and store as much data as possible because doing so directly correlates to earning greater block rewards.
How is the Filecoin (FIL) network secured
Proof-of-replication and proof-of-spacetime are used to protect Filecoin. In the Filecoin network, retrieval miners, also known as nodes, compete to provide data to clients as quickly as possible. A network of nodes that desire to duplicate and maintain files is thus encouraged by the payment of FIL fees.
Storage miner nodes are continually vying for contracts to offer storage to customers for a predetermined period of time. In the event that a storage miner and their client reach an agreement, the storage miner will hold the client's data in a sector and "seal" it to produce an exclusive copy of that sector's data. Clients pay deal fees to storage miners in the form of FIL, and these miners can mine blocks and earn a block reward.
Advantages of the Filecoin network
- Verifiable storage: Filecoin has mechanisms built in to examine the file history and ensure that it has been correctly storing files over time. Every storage company demonstrates that they are keeping their files up to date within each 24-hour period. Even if the client was not online at the time, users can quickly examine this history to ensure that their files have been saved appropriately. Any observer can look up the history of any storage provider and find out if it has ever had problems or gone offline.
- Open market: Deals for the storage and recovery of files are negotiated in open markets in Filecoin. The Filecoin network is open to everyone and requires no authorization. A spare disk space and an internet connection are all that are needed to run a storage provider. Filecoin provides a healthy ecosystem of numerous independent storage providers by lowering entrance barriers.
- Competitive prices
- Reliable storage
- Reputation, not marketing
- Choice of tradeoffs
- Censorship resistance
- Useful blockchain
- Provides storage to other blockchains
- Content addressing
- Content distribution network
- Single protocol
- No lock-in
- Open source code
- Active community
Past, present and future prices of The Filecoin network (FIL)
The price of Filecoin (FIL) took a while after being launched, the price remained low until half way through 2020. The price began to rise consistently, reaching an all-time high of $182.69 in April of 2021. The volatility in its price has since staggered in both the upward and downward directions, the crypto has seen much volatility, which is a normal trend for the volatile nature of the crypto market.
Over the past few months, the global markets have been facing strong investor risk-off sentiment in the wake of the geopolitical tensions, Covid-19 lockdowns in China and supply chain issues. The cryptocurrency market has followed the trends of the greater market during these times, therefore the price of most cryptocurrencies have been falling, FILE does fall under this category.
According to some analysts, the future price of The Filecoin (FIL) network could reach up to $31.11 by 2025 and could see a price of more than $188.18 by 2030. However, it is important to remember that this future price prediction is based solely on data and does not take into account factors such as investor sentiment and the ever changing market conditions, both of which make it difficult to make accurate future price predictions.
FIL Price Chart
Sources: finance.yahoo.com, chanelly.com, coinmarketcap.com. docs.filecoin.io
