What is Filecoin?

Filecoin is a decentralized storage network designed to provide a secure, efficient, and scalable marketplace for digital data storage. Developed by Protocol Labs and launched in 2020, Filecoin allows users to rent out unused hard drive space, creating a distributed alternative to traditional cloud storage services. Its native token, FIL, incentivizes storage providers to offer reliable and affordable storage solutions.

How is Filecoin useful?

Filecoin offers decentralized data storage, reducing reliance on centralized providers while enhancing security and accessibility. Users benefit from competitive pricing, data redundancy, and censorship resistance. Developers can integrate Filecoin into applications requiring secure and scalable storage, while storage providers earn FIL tokens by contributing capacity to the network.

How does Filecoin work?

Filecoin uses a blockchain-based storage marketplace where users pay for space, and providers compete to store data efficiently. The network employs Proof of Replication and Proof of Spacetime mechanisms, ensuring stored data remains intact over time. If storage providers fail to maintain their commitments, they face penalties, reinforcing the system’s reliability.

Filecoin milestones

• Record-Breaking ICO: Raised over $200 million in 2017 to develop decentralized storage.

• Mainnet Launch: Introduced in 2020, enabling global access to decentralized data storage.

• Filecoin Virtual Machine (FVM): Implemented smart contract capabilities, expanding network functionality.

• Massive Storage Growth: Active storage deals surpassed 1,800 PiB, with utilization reaching 20%, driving adoption.

Filecoin’s decentralized approach to cloud storage is transforming data management, offering secure, scalable, and cost-effective alternatives to centralized services.

Buy Filecoin (FIL) on BITmarkets.