Filecoin (FIL)

What is Filecoin (FIL)?

FIL is a protocol that makes available and borrows a certain amount of space on its hard drives the space necessary to store data in the form of different files. The system is decentralized, which is one of its advantages.

The aim of the project is certainly to gain popularity on the hosting market, where in the future the project is supposed to be equal to such giants as Google or Amazon. In addition, the development of the project is based on the goal of a global device that will work on every unused computing power around the globe. The design uses the free realm of hard drives on the world stage. In simple terms, the project is based on two sides of the transaction, where one of them is entities that want to use the data transfer service, and on the other hand, we deal with miners who provide this place to us to store this data.

Interesting fact: Filecoin virtual currency transactions are possible only from 2020, and exactly from October 15 (i.e. purchase or sale transactions). Filecoin is also known as a decentralized storage network. Ultimately, the project is to be based on the help of Bitcoin and Ethereum, which are today world leaders in the world of crypto, and it will also ensure the creation of a cooperation scheme where it will be possible to strive for the perfect use of virtual currency networks.

How does FIL ensure the privacy of its users?

FIL is specific in terms of storing this data because it uses a cloud that allows access through this form. Moreover, these files are encrypted on a decentralized network that can be accessed by any user without any geographic barriers. At the same time, full control over privacy is ensured due to the encryption of each file.

Despite the doubts of some users regarding the storage of their data on another server, it should certainly be mentioned that Filecoin functions in the fragmentation of smaller particles that are registered by authorized persons (miners). They ensure that all security is complete, and the leakage of any data or bending of privacy was impossible to implement. As in the case of the PoS (Proof-of-Stake) consensus, if any fraud is committed, miners are penalized for losing the available hard disk space.

How does FIL function and how to make money on it?

When analyzing the functionality of the FIL cryptocurrency, it is worth basing the system into three entities: the client, miners saving the data and miners recovering individual data. Clients are responsible for sending data about a specific file and storage periods together with a fee. Then, miners, who are responsible for storing this data, provide information about the availability of hard disk space, where they then lend it to customers. To actually become a miner and want to earn money by sharing your hard drive space, you have to reserve your space. Then, the miner leaves the files sent by the client on the appropriate blockchain network, where they cannot be encrypted.

What are the benefits of reassuring customers that their data is stored correctly? Namely, these. PoR (Proof-of-Replication), which are certain elements of informing about appropriate data transmission. The network supplies the FIL token, which pays off the activity of storing and recovering files.

Advantages and disadvantages of the FIL cryptocurrency

One of the disadvantages of FIL is its pace of work. Due to the fact that entities using this type of decentralized protocol have to address only one server with the question. This means that the work progresses at a much slower pace than, for example, in the case of a network with a large number of servers, where the question is directed to several dozen nodes simultaneously.

Filecoin can also raise doubts and distrust in some users due to the data being stored on the hard drive by miners.

The advantages include the fact that Filecoin can be used for any entity that wants to share some part of the hard drive with other users. Thanks to this, it allows all interested parties to earn money.

FIL and Bitcoin - basic differences

How much is FIL? On which exchanges is it listed?

It should be pointed out that the project is very recent, because it started only on October 15, 2020. However, since then such large exchanges as Kraken have taken over Filecoin, which seems to be a promising investment.

Cryptocurrency wallets for FIL - which one to choose?

An interesting option presented on the market is MathWallet, which complements both the mobile, stationary or hardware type and performs these functions together. It can therefore be determined that it is a universal cryptocurrency wallet that allows you to store, among others, Filecoin.

Wallets are necessary to manage assets and regulate our balances and make transactions where there will be interaction between users in the form of file sharing