Filecoin is a decentralized storage network built by Protocol Labs to enable anyone to sell their excess storage on an open network. It turns cloud storage into an “algorithmic market,” where users pay storage providers (in Filcoin’s native token, FIL) to store and distribute data on the network.
Filecoin is looking to provide an alternative to traditional online storage providers and protocols. Their technology acts as an incentive layer for the peer-to-peer file transfer system IPFS, which uses hash-addressed content structures to store data instead of centralized servers and IP addresses. This is intended to reduce redundancy, increase permanence, and improve efficiency.
Filecoin incentivizes IPFS by rewarding storage providers and retrievers for contributing resources to the system. The network also comes with built-in Ethereum integration allowing developers to access data on Ethereum’s blockchain and interact with its smart contracts.
Protocol Labs hopes to build a fundamental layer for data infrastructure that can be used by both blockchain and traditional providers, like Amazon Web Services and Microsoft Azure. In this way, it is reaching to serve the ‘world computer’ niche for blockchain applications.
The project plans to achieve this goal by creating a marketplace in which any user who has storage capacity can connect to the network, creating a supply of unused storage both in consumer hardware as well as data centers of existing businesses. Filecoin believes this will reduce the price of storage in a way similar to how sharing economy companies like Airbnb reduced the price of short-term rentals in marketplaces traditionally dominated by large players with large capital requirements.
English Name: Filecoin
Official Date Released: August 2017
Total Issuance Amount: 2 billion (unit)
Official Website: https://filecoin.io/
Blockchain Explorer: https://filscan.io/#/