What is Filecoin?

1. What is the idea behind Filecoin?

Filecoin is a project to create a decentralized storage platform with embedded cryptocurrency (Filecoin, FIL), which since 2014 has been implemented by California blockchain startup Protocol Labs, the developer of the IPFS system.The idea of the project is to enable some users of computer hardware to earn FIL for other users’ use of excess capacity of their hard drives for data storage.

The platform is expected to use some IPFS components (IPLD, libp2p, libp2p pubsub) and run on the Proof-of-Spacetime (PoST) and Proof-of-Replication (PoRep) protocols. The first allows the participants of the network to prove that for a certain period of time they will have enough space to store information, and the second is sharpened to eliminate problems with the storage of multiple copies of the same data.

2. Will Filecoin replace IPFS?

Protocol Labs believes that Filecoin and IPFS will develop in parallel. The company is working on their interoperability. IPFS is expected to keep users who are willing to purchase their own storage equipment and maintain nodes, while Filecoin will be preferred by those who are willing to spend the money to have others take care of the data security.

3. How will the Filecoin network work?

There are three parties involved in the Filecoin system: clients, custodian miners, and recipient miners. Customers place an order for storage at a specified price with a specified replication factor on the Storage Market (Storage Market). There, they make a deal with the custodian miners and provide them with their hashed data for a fee.The custodian miners place files in free sectors of the hard drive, which is recorded in a blockchain (allocation table) with private keys to the files being provided to the client. The miners post a deposit to the system, which they can lose if the Internet connection is severed, if they are unable to validate the storage of the data.

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To get the data back, the client places a bid on the offchain Retrieval Market and makes a deal with the recipient miner, who returns the data for a fee.

Retrieval miners can also be custodian miners at the same time. In addition, they can deliver data not only in the Filecoin network: the Retrieval Market is allowed to place offers for free or paid data delivery from IPFS.

4. What’s special about the Filecoin ICO?

In 2017, the project raised $52 million from investors in FIL token presales and then raised another $205.8 million in SAFT crowdsales from accredited investors. In 2017, Filecoin set a record for collections among ICOs.

Investors will not receive tokens until after the project’s core network launches.

5. When will the Filecoin network launch?

The launch of the main network took place on October 15, 2020.

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