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Many assets in the world are left out for rent like immovable assets, automobiles, etc. What if the free space on your hard disk is also let out for rent? Interesting, right!! Yes, Filecoin is one such decentralized peer-to-peer storage marketplace that enables users to rent out their unused hard disk space. Moreover, the users earn the FIL token, the native token in return. In short, Filecoin aims to incentivize a global network of computers to provide file sharing and storage.
FIL token, the native token of the Filecoin network, empowers and is used to incentivize the network contributors. The storage fees or any network fees are paid using the FIL tokens which can be easily traded as a cryptocurrency in the market. With just a year of history, FIL was able to mark its presence pretty strong in the space. But the value, on the contrary, depleted over time. The 2021 bull run did uplift the price, yet further maintained a strong downtrend to reach its initial levels again.
Introduction to Filecoin(FIL)-In Brief
Filecoin is open-source software that was launched by Juan Benet also the founder of Protocol Labs. Just a couple of years later the launch of the most primitive token Bitcoin, Filecoin was introduced with a similar concept. But here, the nodes can store the data which is secured by the Proof-of-Replication consensus mechanism. The platform is built on the top of the Interplanetary File System (IFPS) which enables the users to rent the hard disk space.
IPFS is a peer-to-peer data storage and retrieval protocol built to provide decentralized storage for the global network of computers. By joining the network the user can create a huge source of data storage. The platform intends to offer cloud storage similar to Amazon or Google but at an affordable price.
Despite having tough competitors like Storj and Siacoin, Filecoin thrives the crypto space along with the native token FIL. The platform raised nearly $205.8 million in an ICO in 2017 and the FIL token was officially launched in the late 2020s.
Additional Read: Daily Crypto News 14 February, 2022
How Does Filecoin(FIL) Work?
Filecoins works with the concept of DropBox but is backed by blockchain technology. The users who wish to store their data or rent out storage are required to pay the miners. The miners here are the people who have free storage available. The miners store the data on the Filecoin network and receive the fees both on storage and retrieving data.
Storing data somewhere else sounds to be pretty risky but Filecoin encounters the risk using two new proofs, Proof-of-Replication and Proof-of-Work.
Proof-of-Replication:- This mechanism verifies the number of data copies stored as per the claim of the miner.
Proof-of-SpaceTime:- This mechanism ensures the miner stores the data over an agreed period.
Filecoin Storage Markets
Yet another unique feature of Filecoin are their markets which offer a market for disk storage. Here the user who wishes to store the data can bid on available data storage offered by the miners. The miners are selected based on their reliability and the prices they offer against storing data. Much similar to the other financial markets where the users make bids and acquire the asks.
Miners on Filecoin are the people who wish to offer their free space on rent. Any user to be a miner is required to plug in the hard disk and run the Filecoin software. Further, the user may offer disk space in the Storage Market. These miners are also known as Storage Miners. However, the other set of miners on the Filecoin network who retrieve the data are known as retrieval miners. Moreover, the miners are also paid to speed up the transmission of data.
Will FIL Price Hit $ in 2022?
The FIL price had witnessed a decent spike during the 2021 bull run which raised the price from lows below $20 to as high as $237. However, the price began to fall down the cliff instantly shedding more than 80% of its value. Despite a couple of attempts to recover the losses, the asset kept on plunging into the deep bearish well. Moreover, continuing with the same trend, the asset is currently hovering again at its initial levels around $20.
The market sentiments are pretty uncertain at the press time and hence a strong flip with a huge induce bullish momentum is much required to reverse the trend. And if such a change occurs in the coming days, then a notable uptrend may uplift the price close to $100 or $130 to end the 2022 yearly trade. If the bull run ignites then the FIL price may slice through the current ATH and form a new one around $270. Conversely, if the bears take back the control the price may end the 2022 trade around $50 to $60.
Factors Impacting FIL Price Today
Verified Storage of Data
The platform cross-checks whether the data stored is aligned properly over time. The storage provider has to report every 24-hours proving the maintenance of the data. The clients can also scan from the history and confirm whether the files are current or not.
Thriving Ecosystem with a Low-Barrier Entry
The storage and retrieval rates are decided in the open markets. Joining here is easy without the need for any permission. AS the miners require only free disk space and an internet connection, the entry into the ecosystem is pretty easy.
The rates for storage and retrieval are decided by supply and demand which also places the miners to compete among themselves to offer attractive deals
Filecoin data storage is not accessed by any central authority and hence no one can pressurize to delete the files or halt the service.
Filecoin is an open-source code much similar to Bitcoin where-in users can directly download the code eliminating the need of developing their own.
Where & How to Buy Filecoin(FIL)
Want to buy some FIL? You are at the right place!
CoinDCX is the best place to buy, sell or trade your favorite crypto assets like Bitcoin, Cardano, Avalanche, Filecoin, etc. To do so, you are required to register first. Download CoinDCX App on your smartphone and enter the required details. Once the verification is done, just fund your wallet and start trading. Simple!
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