What Is filecoin? How does it work?

 

What Is filecoin? How does it work?

In simple words, Filecoin is a cryptocurrency that allows a person to rent out extra additional space on their computer. It I an open-source and decentralized method of data storage and retrieval.

 

Key points related to filecoin 

·      The filecoin project was lunched in the year 2017 and raised $200 million in an initial coin offering (ICO).

·      ICO is funding provided using cryptocurrencies.

·      Filecoin is created by protocol labs which is research and development laboratory funded by scientist Juan Benet.

·      The total network storage filecoin has reached above 1.1 million TB or 1 EiB(exbibyte).

 

 

Advantage of filecoin

o   A filecoin tends to create a larger free storage market for data, it will bring down the price for storage.

o    Filecoin connects a lot of computers together resulting in a huge storage network.

o   Filecoin will be using the available resources instead of using new storage computers.

o   Filecoin ensures hat it cannot be hacked like other storage services like Dropbox.

Although filecoin has many advantage, there are some disadvantages linked to it like speed. As filecoin needs to access multiple servers to put together documents when required, it can take a long time depending on the internet speed.

 

How filecoin works?

Filecoin is a digital payment system that allows a person to buy unused to storage space on another person’s for data storage.

Is filecoin safe?

As filecoin allows a person to save his data on someone else’s computer there are safety issue with filecoin. However filecoin ensures the safety of the data in such a way that it cannot be accessed by anyone else. The data can be regrouped by the host if it is hacked but will result in meaningless data.

 

Future of filecoin

Cloud serevice providers like Google and Amazon put in a lot of money which shows there is a great demand in the market. If the trust for decentralized services is generated among the people, they can save a lot of money.

Efficiency

Filecoin’s decentralized approach to storage puts users and storage providers first. The platform has data retrieval speeds that outrank industry leaders like Amazon. As the market grows, its infrastructure is designed in a way to improve its responsiveness. In this way, Filecoin has the potential to become the fastest and cheapest way to store data on the internet.

History of Filecoin (FIL)

Filecoin’s story begins with Protocol Labs Filecoin ICO in 2017. At that time, the platform made international headlines as one of the industry’s largest funding rounds. Specifically, the event secured $205.8 million and demonstrated the high level of investor interest surrounding the project. Notably, the event received backing by venture capitalists Sequoia and Andreessen Horowitz.

Filecoin (FIL) – A Market Set to Expand

If Filecoin is any implication of what is to come in the future, you can expect to see more blockchain-based file sharing protocols enter the market. These systems help users secure a passive income and help to reduce the carbon footprint and waste produced by users who no longer need to purchase hardware. For these reasons, Filecoin is set to experience massive growth in the coming months.