Filecoin is one of the most curious crypto money projects these days. Starting with “What is Filecoin”, we find answers to everything wondering about the project.
Filecoin is next in our series of articles that serve as a guide for beginners. First of all, the most curious “What is Filecoin?” Let’s find an answer to the question. Filecoin is a decentralized platform that allows you to sell or buy storage space that you do not use.
Filecoin is perhaps one of the most anticipated projects in the crypto money market. The project, which emerged in 2017, collected over $ 200 million through the token sale it carried out in the same year, namely the ICO. Filecoin is expected to be released from 2017 to October 2020. The team has consistently postponed Filecoin’s launch date. After a few delays, the platform finally went live as of October 15, 2020.
Decentralized alternative to entities like Amazon Web Services
Filecoin essentially aims to offer a decentralized alternative to popular web service providers like Cloudflare or Amazon Web Services. Project founders claim that it could be the fastest and cheapest way of storing data on the internet if available to a sufficient number of people. Moreover, Filecoin is not subject to a central authority so files cannot be censored by governments or other actors. Recent figures that came with the network’s launch show that Filecoin could be a strong competitor to these platforms. According to FilStats data, the cost of storing data on Filecoin is $ 0.104 per GB. This makes Filecoin 74 percent cheaper than Amazon.
Filecoin also received significant support from venture capital companies. In the seed financing phase, it provided 120 thousand dollars financing from companies such as Digital Currency Group and Winklevoss Capital, as well as important names such as Naval Ravikant. In 2017, venture capital companies such as Union Square Ventures and Sequoia Capital, together with Winklevoss Capital and Andreessen Horowitz, invested $ 52 million in Filecoin. Among Filecoin’s investors is Fred Erhsam, founding partner of Coinbase.
The launch of Filecoin and the listing of the crypto money on exchanges made a big splash. Filecoin, which was sold at a price of $ 5 at the ICO stage in 2017, rose to $ 430 on the first day it entered the stock market. The crypto money, which then declined, changes hands at $ 42 as of October 18, 2020.
Who was Filecoin founded by?
Filecoin is open source software created by Protocol Labs. The same company is behind technologies like IPFS and Libp2p. Protocol Labs was founded by Juan Benet, co-founder of a game developer called Loki Studios while studying computer science at Stanford. Loki Studios was acquired by Yahoo in 2013. Benet later joined the Y Combinator startup accelerator program to launch Protocol Labs.
Storj and Siacoin can be mentioned as the competitors of the project. Storj claims to have reached a network capacity of over 100 petabytes. Siacoin, on the other hand, announced a network capacity of 2 petabytes as of 2020. Filecoin is stated to have seen 656 petabytes as of October 16, 2020.
So how is Filecoin mining done? Generally, Filecoin miners are users who offer storage space. This suggests that any user can start offering disk space on the Storage Marketplace by running the Filecoin software. These miners are called “Storage Miners”.
Those who provide storage space are rewarded with Filecoin tokens. A miner can be any computer connected to the internet with spare disk space or a special system with a large amount of storage space created specifically for Filecoin.
Filecoin can become a very serious alternative to central providers such as Amazon, Microsoft, Dropbox, if it can realize the great expectations it creates. Central providers may be pressured by companies or governments to force users to change, remove, or reject their services. This can create a trust issue for centralized storage. In such a scenario, projects such as Filecoin, Storj, Siacoin will benefit.
Filecoin, on the other hand, can stand out for its cheap cost. As we mentioned above, available data show that storage on Filecoin is 74 percent cheaper than Amazon Web Services. Filecoin suggests that the vast majority of disk space worldwide is currently idle and unused. File storage prices can be further lowered if this disk space, which cannot be used through financial incentives and cryptography, can be freed.