Cryptocurrency Overviews

Filecoin (FIL) Overview and Analysis

How Filecoin is planning to monetise your spare computer storage whilst making storing files cheaper and more secure.

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13th January 2021, 17:30 GMT

Filecoin (FIL) is a project that is hoping to create a fully decentralized file storage system.
Filecoin was founded in 2014 as apart of Protocol Labs which is a company that is "building the next generation of the internet".
Filecoin is both the network that files are stored decentralized as well as the currency that is used on that network and subsequent marketplace.

In a simple sense, Filecoin is a decentralized network that allows anyone to purchase storage on the network and also allows anyone to rent out their own spare storage space on their computer.
All information that is stored upon the Filecoin network is stored securely, with the file owner being the sole user who can access that data.
Miners who store the data on their spare space are unable to alter, inspect or redact any of the information.
Filecoin also ensures security when storing files on their network by disbanding the data whilst it's being stored and then reconnecting it all once the information is requested by the user.

The Filecoin network is made up of 2 groups of users:
Users: Users pay miners to store their files in FIL.
Miners: A Miner receives the files from said user and commits to this on the Filecoin network, the network will also continuously verify the miner is storing the files correctly.
The price that users have to pay for storing files on the network is not set but is determined openly via users' demands.
The network ensures miners are correctly storing files whilst also recording all transactions that are occurring between users and miners.
All transactions on the network are done via Filecoin as the central currency.

Filecoin hopes to attract more users as a result of the various options they have when choosing which miner they wish to store their files on and thus can have a wide range of options when it comes to pricing.
Users' files are also far safer on the decentralized Filecoin network, whereas other centralized storage systems such as Dropbox can and have been open to be compromised.

Filecoin also allows people to monetize their spare storage, which is something that the majority of people possess and will likely begin to do.
This will allow Filecoin to scale massively and could potentially create one of the largest file storage systems in the world by utilizing the millions of computers with spare storage.

Ultimately Filecoin is not the sole innovator when it comes to a decentralized file storage network, it is however the most promising and most technologically sophisticated.
The file storage industry is huge, with the tech giants dominating the space.
If however, there begins to be a shift by consumers and corporations towards a decentralized approach when it comes to storing files, Filecoin will no doubt be the company leading the way, with its professional approach and superior technology the future for Filecoin looks bright.

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