The cryptocurrency Filecoin (FIL) wants to become a “decentralized world storage” and offers similar to Dropbox and Co.corresponding cloud storage. However, the concepts differ significantly: with Filecoin (FIL), users can also offer memory and be paid for it. At around $70, the Filecoin price is currently trading more than 70% below its recent all-time high of $237. As a result, there is plenty of room for an increase upwards – and the coin is also expected to receive an important update in June.
We explain: What is Filecoin (FIL)? How does Filecoin work? What are the Filecoin price forecasts for 2021-2025?
What is Filecoin (FIL)?
Filecoin is a peer-to-peer network developed by Protocol Labs that stores files and provides economic incentives for users to participate. The project was first described in 2014-at the time as part of the “Interplanetary File System” (IPFS), a now popular peer-to-peer storage network.
The project aims to develop a thriving, decentralized ecosystem of independent storage providers. According to the founders of Filecoin (FIL), the decentralized storage system wants to “store the most important information of humanity”. The idea of decentralized cloud storage was able to raise a whopping $205 million in an Initial Coin Offering (ICO) in 2017.
The Filecoin network had already reached a capacity of 2,5 exbibytes in February 2021, according to an official announcement. Exibytes do not tell you much? Here is a conversion: 2.5 exibytes equals 2.5 billion gigabytes. That’s good enough for 725 million, 1080p movies, 11250 copies of Wikipedia, and 47 copies of the “Internet Archive”.
Simply put, Filecoin is comparable to Amazon Web Services, Dropbox and similar cloud providers-only decentralized.
How does Filecoin (FIL) work?
In Filecoin, users pay for their files to be stored on so-called storage miners. Storage miners are computers that are solely responsible for storing files and can prove that they store these files correctly.
Anyone who wants to save their files or get paid for storing other users ‘ files can join Filecoin (FIL). In the sense of decentralization, the available storage space and the price of this storage space are not controlled by a single company. Instead, Filecoin creates an open market for storing and retrieving files that anyone can participate in.
Filecoin uses a Blockchain and a native crypto-Token called FIL. For storing files get Storage Miner FIL. The Filecoin blockchain records the transactions in which FIL is sent as well as received and proves that the data has been stored correctly. The blockchain is based on both proof-of-replication and proof-of-spacetime. Unlike other coins such as Bitcoin, where miners receive a reward for verifying transactions, Filecoin miners are rewarded with FIL coins because they provide storage space.
Who is Filecoin (FIL) for?
Filecoin is aimed at users and storage vendors:
- Users: Users can save their data at reasonable prices and ensure that these files are stored correctly. Here, users have the choice of different offers: There are storage miners, which are fast, but also expensive. Or you can opt for an offer that offers a good compromise between cost and speed. In short: If you want to store data, you should be able to choose from a wide range of storage options and find an option that is optimally suited to your needs. Users can always check if their files are stored correctly by looking at the appropriate section on Filecoin’s blockchain.
- Storage Providers: Filecoin (FIL) allows storage providers to sell the available storage space on an open market. Storage providers are individuals or organizations that operate storage miners and earn Filecoin tokens for doing so. This also works without major hurdles: Any computer connected to the Internet can become a storage miner if it has free space. Dedicated systems with massive memory built especially for Filecoin are of course better suited for this. The storage miners are then rewarded by the Filecoin blockchain for providing storage space.
Providers do not have to advertise their offer themselves – this is done by the Filecoin protocol. There is also no need to develop your own programming interface (API), which makes it easier to get started.
What makes Filecoin (FIL) unique?
Filecoin aims to store data in a decentralized way. In contrast to cloud storage companies such as Amazon Web Services or Cloudflare, Filecoin’s decentralized nature offers clear advantages: The data is easily retrievable, difficult to censor and thus more secure.
In other words, decentralized storage systems like Filecoin give users complete control over their data. In addition, the Filecoin network rewards users directly with FIL. Participants thus have an additional incentive to use the network and provide storage space.
Who is behind Filecoin (FIL)?
Filecoin was founded by the US computer scientist Juan Benet. In addition to the Interplanetary File System (IPFS), the Stanford graduate has developed other protocols at Protocol Labs, including libp2p, a modular network stack for peer-to-peer apps and systems, IPLD, a data model for interoperable protocols, or CoinList, a token sales and investment platform.
What does the future hold for Filecoin (FIL)?
The Filecoin price was particularly strong at the beginning of the year: crypto asset manager Grayscale announced that it would launch an investment fund for Filecoin (currently worth $3.6 million). Grayscale’s offering already includes popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC).
A few weeks later, the Filecoin developers announced a cooperation with the decentralized video streaming network Livepeer. This should give Filecoin miners the opportunity to become Livepeer video miners and store transcoded video data.
In addition,: Chinese company Wanxiang Xinyuan Technology is said to have acquired servers and data storage devices for Filecoin mining for $89 million, and a critical Filecoin update, the so-called HyperDrive upgrade, is expected in June. developer:
“The HyperDrive upgrade is a big deal for all Filecoin network subscribers. Storage clients and application developers will benefit from increased message throughput, which improves the overall value of the network.“
The update also promises faster capacity growth for Filecoin storage providers.
Filecoin (FIL) Price Forecasts 2021 – 2025
- CoinCodex.com gives a general bearish sentiment on the Filecoin price prediction: 8 technical analysis indicators therefore signal bullish signals, 17 on the other hand show bearish signals.
- WalletInvestor.com is optimistic about the Filecoin price forecast: The 1-year price forecast for Filecoin sees FIL break the previous all-time high within the next 12 months and rise to as high as $287.42. The 5-year price forecast for Filecoin (FIL) is even more bullish: it sees FIL rising to $1,170 by 2026.
- DigitalCoinPrice.com assumes a slow but continuous increase in filecoin (FIL). By the end of the year, FIL will climb to $107, 2022 to $122. However, Filecoin will not reach a new all-time high until 2026: According to the forecast model, FIL will reach $241.
- Gov. Capital is similarly bullish as Walletinvestor: in the 1-year price forecast, FIL initially rises to a decent $344, then explodes to as high as $1214 in the 5-year price forecast.
- LongForecast.com does not expect Filecoin to grow very impressively: in 2021, FIL could end up with only $63. In the following year, FIL is forecast to trade largely sideways, then close the year at $66. In four years, the FIL price then picks up and is at $136 in June 2025.
Top Brokers for buying and trading cryptocurrencies
- Buy Real Bitcoin or Bitcoin CFDs
- Wallet and Exchange in one
- 14 + Cryptos
- EU regulated
- Over 40 cryptos on offer
- Fees rather in the midfield
Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.