Cryptocurrency

Filecoin: Optimising the power of blockchain for data storage

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With the launch of the Internet and the invention of Bitcoin, internal strife between tech companies has begun in an attempt to control one thing: data. As you can observe, large institutions have complete control over how data is distributed, handled and consumed. Consequently, industries like cloud storage and file sharing are swayed by centralisation. Users who lack alternatives have to pay higher fees and abide by a firm’s unjust terms and policies.

With this, the importance of secure and safe file storage becomes a huge concern. But thanks to Filecoin cryptocurrency, better data storage solutions are now within reach. What features does it offer to investors and internet users alike? Find out about them below!

Defining Filecoin cryptocurrency

Filecoin is a peer-to-peer (P2P) decentralised storage, a cryptocurrency and a digital payment system. It aims to be a blockchain-based data storage platform that allows network users to rent unused hard drive space without spending a fortune. 

In August 2017, Filecoin was invented and launched by Protocol Labs. At that point, the company made international headlines after raising over US$200,000,000 within 30 minutes, which is considered to be one of the largest funding rounds. With this comes the interest and support of firms and venture capitalists like Andreessen Horowitz and Sequoia.

The network operates on an InterPlanetery File System (IPFS) architecture. Through content-addressing, it connects all data sources to fast-track the process of file sharing and data storage. Unlike Hypertext Transfer Protocol (HTTP) which requests data from a server, IPFS uses ​​a cryptographic hash to be permanently recorded within the blockchain. 

To put it into reference, your files will remain available and accessible regardless of where they are hosted. 

Mining FIL tokens: How does it work?

In popular cryptocurrencies like Bitcoin, Litecoin and Dogecoin, their network operates on a proof-of-work blockchain. This is where miners calculate valid alphanumeric codes to confirm transactions without a third party or custodian. However, mining is a lot different in the Filecoin network. 

Filecoin has a native token with a ticker symbol of ‘FIL’. Once you become a miner, you will earn your share of FIL tokens by storing users’ files within the network. This means that you can be eligible to claim FIL as a reward if you provide data retrieval and storage services, as well as provision of content.

Within the Filecoin ecosystem, miners compete with each other by offering the lowest prices for data storage. You will be evaluated and judged according to your dependability and the storage prices you offer to network users. 

When it comes to corrupt or damaged files, Filecoin’s development team aims to include repair miners to solve similar issues. 

Benefits of Filecoin: What does it try to address?

Becoming a Filecoin cryptocurrency investor is a major advantage, especially if you want to invest and maximise the potential of blockchain at the same time. Since it’s a native token and decentralised storage, you can finally take advantage of safe and affordable file sharing while enjoying your returns. 

If you invest in FIL token and use its platform, what will it exactly solve? Take a closer look at its benefits below:

Have access to open markets

In the Filecoin network, retrieval deals and file storage are declared in an open market. Meaning to say, permission from an intermediary is not required if you want to join the network. You only need a stable internet connection and spare disk space if you want to be a storage provider. 

Take advantage of competitive prices

Compared to giant tech firms such as Amazon Web Services, Google and Microsoft, the prices for data storage are not dictated by the company’s pricing management. Instead of bombarding you with marketing and PR strategies, miners will compete for users through reliability, speed and price, among many others. 

Say no to censorship

There’s no doubt that data breaches and deletion of files are possible since storage providers can withhold their service on their own terms. However, when you start investing in FIL tokens, you get access to censorship resistance. With the absence of central authorities, no one holds the right to delete your files and sensor data without your permission. 

The Filecoin ecosystem is made up of various computers supervised by organisations and people across the world. If ever a malicious activity or a network attack takes place, they will be removed immediately to ensure the safety of stored files. 

Better security

Back in 2012, popular cloud storage company Dropbox had been a victim of a data breach. The private details of around two-thirds of its customers were leaked, putting their identity and personal information on the line. There were also allegations that the firm’s employees have access to encryption keys, allowing them to decrypt and view users’ files.

This is what investing in Filecoin cryptocurrency would address. Thanks to the decentralised nature of its platform, its blockchain solutions focus on breaking data into smaller chunks and storing them in various nodes once they are encrypted. Only the user who has the private key has the right to reassemble them and view the data as a whole. 

Filecoin cryptocurrency: All about the decentralization of data

Although the rise of various cloud companies has helped users access data storage, high prices and network vulnerabilities are still a huge concern. Giant tech companies are now dominating and dictating the future of the digital era, so what choices are left for users like you?

However, once you start investing in FIL tokens, you get access to blockchain-based digital storage. Its open markets, open-source code and mining protocols allow participants to maintain passive income and reduce carbon footprint at once. You can expect that Filecoin, with its innovations and future projects, will welcome massive developments in the following years. Invest in FIL tokens now and stay tuned here at BTC Post!

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