Decentralized storage network designed to store information
About the Project
Filecoin is a cutting-edge peer-to-peer network designed to revolutionize file storage by offering reliable, decentralized solutions with built-in economic incentives. Leveraging advanced cryptography, Filecoin ensures the secure and permanent storage of files over time. In this ecosystem, users pay storage providers—computers dedicated to securely storing and proving the correctness of files over time. This innovative approach allows anyone to participate, either by storing their files or by earning compensation for offering storage services. Unlike traditional storage systems controlled by single entities, Filecoin fosters open markets for both storing and retrieving files, ensuring competitive pricing and widespread accessibility.
Built atop the InterPlanetary File System (IPFS), a peer-to-peer distributed storage protocol, Filecoin enhances the foundational IPFS technology with an incentive layer. This addition promotes the reliable storage and accessibility of content, setting Filecoin apart by offering more than just decentralized storage. It supports a variety of use cases, from storing Web3 native assets like NFTs and game assets to providing an affordable alternative for archiving large Web2 datasets. Notable projects such as NFT.Storage, Shoah Foundation, and the Internet Archive rely on Filecoin to safeguard their valuable data. Additionally, platforms like Audius and Huddle01 utilize Filecoin to support decentralized music streaming and video conferencing, thanks to its versatile support for various data formats, including audio and video files.
Filecoin’s robust and decentralized storage network presents a transformative solution for data storage needs across industries. By integrating economic incentives and leveraging peer-to-peer technology, Filecoin not only ensures the security and permanence of data but also democratizes access to storage solutions, empowering users and providers alike to engage in an open, competitive market.
Use Case
Filecoin provides secure, decentralized storage for NFT content and metadata through platforms like NFT.Storage, supporting Web3 assets such as metaverse and game assets to ensure their reliability. It offers a cost-effective solution for archiving large datasets, used by organizations like the Shoah Foundation and Internet Archive. Filecoin enhances music streaming platforms like Audius by offering decentralized storage for music files, and supports decentralized video conferencing on platforms like Huddle01, ensuring data privacy and reliability. Its incentivized storage ensures long-term data reliability, appealing to users needing permanent storage solutions. Developers can build decentralized applications (dApps) utilizing Filecoin's scalable and secure infrastructure. It also provides robust data backup solutions across decentralized nodes, supports Ethereum-compatible smart contracts for seamless integration with the Ethereum ecosystem, and enhances financial applications with its Payment Channel Actor for efficient and secure transactions.
Tokenomics
Filecoin (FIL) is the native utility token incentivizing storage on the Filecoin network, with a maximum circulating supply of 2 billion tokens to ensure scarcity and value over time. Storage providers mine FIL by offering reliable storage services or committing storage capacity, driven by Filecoin’s dual minting model that aligns token issuance with network growth. This model includes Baseline Minting, aiming to mint up to 770M tokens based on network performance, and Simple Minting, releasing 330M tokens over time with a 6-year half-life. Additionally, 300M FIL tokens are reserved to incentivize future mining activities, promoting network expansion. Mining rewards vest over 180 days to encourage long-term commitment, with 75% vested linearly and 25% available immediately. Further, FIL tokens are vested to Protocol Labs teams, Filecoin Foundation, and investors over several years. Storage providers lock FIL as collateral for security and reliability, with penalties (slashing) for failing reliability checks. The total supply of FIL is capped at 2 billion, but the actual circulating supply will be lower due to token burning through gas fees and penalties.