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What Is Filecoin and How to Buy FIL?

2023-05-19 02:57:41

Filecoin (FIL) is a decentralized storage platform that stores user data, and enables anyone to earn tokens by providing storage services for others. In this article, we'll explore what Filecoin is, how it works, its features, value, tokenomics, and finally how to buy FIL coins.


What Is FileCoin and How Does It Work?

Filecoin is a decentralized storage platform that securely and efficiently stores data. It is an open-source system that enables anyone to join and either store data or earn money by providing storage space for others.

Filecoin uses proof-of-replication and proof-of-spacetime to ensure data security. Filecoin aims to solve the problem of inefficient file storage and retrieval by making the web more accessible to people worldwide. Filecoin incentivizes users to store data as much as possible and act with honesty. 

The Filecoin system comprises three groups of users, namely clients, storage miners, and retrieval miners, who interact closely with each other, exchange data, conclude transactions, and make micropayments using $FIL.

To store or retrieve data, clients pay for services and place orders on the online storage market, where they finalize deals with storage miners. Storage miners place files in free sectors of a hard drive and receive rewards. Retrieval miners extract data at the request of a client and can also act as storage miners. Filecoin uses a protocol called IPFS to store all data.

InterPlanetary File System, or IPFS, is a network that provides a decentralized and immutable solution of exchanging and storing data. Users can access and distribute files globally without relying on a centralized server due to this distributed file system.

To keep their data safe on the Filecoin network, clients must pay the miner, and the cost is set by the open market. The price is made up of several factors, and there is hyper-competition among miners in the open market. Storage miners who offer more have a greater chance of receiving rewards. Filecoin's decentralized nature protects the integrity of data location and makes it easily retrievable and hard to censor. Filecoin and other decentralized storage systems enable individuals to take charge of their data and become their own custodians.

What Is FIL Token?

Filecoin's native currency, FIL, is a utility token that powers the network's data storage and retrieval markets. Filecoin blockchain provides economic incentives and disincentives, and those who host a storage node on the network earn FIL as a reward for their participation.

FIL is used to incentivize persistent storage on the Filecoin network, and storage providers mine FIL by providing reliable storage service or committing storage capacity on the network. 

Filecoin employs a dual minting model to reward block creators, which links the issuance of new tokens to the network's overall value and expansion. This approach encourages a sustainable growth trajectory for the network by aligning incentives with long-term goals. Most of the Filecoin supply will only be created if the network achieves growth and utility targets at scale.

By employing a dual minting model, Filecoin ensures that its network grows sustainably, and the incentives provided by FIL encourage users to store more data on the network, which as a result increases the network's utility and value. This system aligns the interests of all participants and helps to maintain the decentralization and security of the network.

FIL Tokenomics

FIL Tokenomics

History of Filecoin

Filecoin is a cryptocurrency created by Protocol Labs, founded in 2014 by Juan Benet. In 2017, Filecoin raised $205 million in a token sale. The project aims to create a decentralized storage marketplace, allowing storage providers to connect with users who need storage space. By doing so, Filecoin hopes to democratize the storage industry, reduce the price of storage, and encourage a sharing economy for storage providers. 

The team believes that traditional storage providers have created a market dominated by large players with high capital requirements. Filecoin's vision is to create a more efficient and cost-effective storage market that benefits both storage providers and users.

Features of Filecoin (FIL)

  1. Designed for both data users and storage providers: Filecoin is a decentralized network that enables ultra-low fee data storage on an open marketplace, where anyone can become a storage provider and earn FIL tokens. Users can choose the best storage offer for their needs and verify data integrity through the blockchain. The protocol handles negotiations between users and storage providers, creating a robust, decentralized ecosystem.
  2. A platform for storing NFTs: Filecoin stores the digital assets for NFTs, enabling their ownership to be transferred while keeping the actual asset on its storage network. OpenSea.io, the biggest NFT marketplace, uses the Filecoin network for permanent file storage, with over 1.17 million storage transactions and 32 million gigabytes of storage space.
  3. Resistance to censorship: Filecoin's decentralized network, which allows anyone to become a storage provider or user, creates resistance to censorship. This is because there is no central authority controlling the network, making it difficult for any single entity to restrict or suppress information stored on the network.
  4. Reliable storage: Filecoin provides reliable storage through its decentralized network of storage providers. By allowing anyone to become a storage provider, the network ensures that there are multiple copies of data stored across the network, reducing the risk of data loss or corruption. Filecoin also protects user data by using cryptographic techniques to verify that stored data remains immutable.
  5. An excellent platform for storage providers (miners): Filecoin's open markets allow for deals on file storage and retrieval to be made without requiring permission, making it accessible to anyone who wants to join the network as a storage provider. All that is required to become a miner is an internet connection and free disk space. By lowering entrance barriers, Filecoin creates a vibrant ecosystem of numerous independent storage providers.

Filecoin Latest News and Updates 

  1. Filecoin Virtual Machine is Live: Filecoin Virtual Machine (FVM) is a decentralized application (dApp) platform that runs on top of the Filecoin Blockchain and enables developers to write smart contract codes. The FVM allows developers to build and deploy decentralized applications that can access and interact with the Filecoin network. FVM is multi-runtime, secure, and efficient. This enables anyone to interact with Filecoin’s state including metadata and transactions governing what and who stores data on Filecoin by simply deploying on the network.
  2. HackFS 2023 is coming up: HackFS 2023 is an event that brings together some of the top minds and experts in the Ethereum Ecosystem. It enables teams to create something great in only three weeks by providing an abundance of web3 resources, such as mentors, sponsors, and software. The event is free for attendees, but hackers are required to "stake" a small amount of cryptocurrency to confirm their spot and manage the waitlist. Each team can have a maximum of five members, and each member must apply and stake individually. Participation as an individual is possible, but it is recommended to work in a team of at least two people for better project management within the limited time.
  3. Filecoin Introduces Lassie: Lassie, a retrieval client for Filecoin and IPFS, can now be used to easily retrieve data from both networks using the best retrieval protocols available. Lassie currently supports Graphsync or Bitswap protocols depending on the availability of data and may support additional data transport protocols in the future.

Filecoin Token Value

Filecoin (FIL) is a decentralized storage network that rewards storage providers with tokens for hosting user data. As the demand for decentralized data storage increases, so does the value of FIL. The Filecoin network incentivizes storage providers to offer competitive storage prices, providing a more affordable option for users compared to traditional cloud storage providers. 

This creates a thriving market for data storage and retrieval, driving up the value of the FIL token. As of May 2023, FIL's market capitalization is worth $1.9 billion and is currently valued and traded at $4.5 per FIL token. The value of FIL is derived from a number of factors, including the demand for decentralized storage, the supply of FIL tokens in circulation, and the overall health and growth of the Filecoin network. 

As more users and organizations adopt the Filecoin network, the demand for FIL tokens increases, driving up the token's value. Additionally, the Filecoin network has a built-in mechanism for regulating the supply of FIL, ensuring that new tokens are only created when storage providers add new storage capacity to the network. 

This helps to maintain the scarcity of FIL tokens, further driving up their value. As a result, FIL has become an increasingly popular investment option among those looking to capitalize on the growing demand for decentralized storage solutions.

How to Buy FIL Coins?

CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including FIL, users can now trade easily and seamlessly. To purchase FIL on CoinEx, follow the steps below.

  1. Register or Log In: To access CoinEx's services, click "Register" to create an account. Alternatively, if you already have an account, you can log in.
  2. Deposit Fiat or Crypto: The next step is to fund your CoinEx account. You can fund your account using a variety of deposit options. You can as well deposit other cryptocurrencies supported by the exchange that can be traded with FIL coins. 
  3. Exchange paired tokens for FIL: After successfully depositing Fiat or crypto into your CoinEx account, navigate to the trading page and look for the FIL trading pairs. It is important to choose the trading pair that corresponds to the token you deposited. For instance, if you deposited USDC, select the "FIL/USDC" trading pair.
  4. Buy/Trade FIL Coins: You can easily purchase FIL tokens once you have selected the correct trading pair. All you need to do is specify the desired number of FIL tokens and exchange the paired token for FIL.
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