What is Filecoin (FIL)?

Filecoin is a decentralized storage system in which important information is to be stored. In contrast to competitors in the field of cloud storage such as Google Drive, Dropbox, or Microsoft OneDrive, Filecoin does not use a central server to manage the system information. Instead, the data is stored on a peer-to-peer blockchain, whereby users, if they provide storage space on their own computers, become miners and receive FIL tokens in return. The price for Filecoin services is not set by a central authority. Rather, the decentralized system acts like an open market in which the storage providers set their own prices, and users who are looking for storage space select the most attractive offer based on criteria such as cost, offer and speed.

Photo by Taylor Vick on Unsplash

Possible applications

Filecoin aims to enable individuals and businesses to provide data storage services at a fraction of the cost and complexity of major industry competitors. For the amount of FIL tokens paid, customers receive a more flexible service that allows them to pay for exactly the amount of storage they actually need. Data that can also be made universally available in the Filecoin network benefit from the data protection technologies of the platform.
Filecoin can be used to buy and sell data on data exchanges and marketplaces, as well as to securely store and distribute valuable data resources such as documents, literary works, and scientific publications. The system is also useful for distributed supply chains and dApps. This also enables the payment of goods services via the FIL token and the storage of large amounts of customer data with time stamps.

Conclusion

This is only a rough overview, but in any case, Filecoin makes sense with its useful real-world applications and is in some cases even already in use. In addition, the prices for data storage via Filecoin are more affordable and safer. It definitely has great future potential, and now it is the company’s turn to adopt the system.

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