Filecoin is being developed by Protocol Labs, which some may be familiar with from IPFS, a content-addressable, peer-to-peer hypermedia communication protocol. Work on Filecoin has been going on for a long time, but only now the project is entering the ICO. Initially, the team planned to create a standalone cryptocurrency for the platform, such as Litecoin and many other altcoins, but at the last moments decided to issue their tokens based on Ethereum.
In the first version of the white paper, Filecoin was described as a protocol that relies on the Bitcoin network and validates its files in its blocks. However, Protocol Labs subsequently realized that this was not the best approach in the long term and wrote the following: “Instead, we are considering basing the Felicoin repository service on any reliable proof-of-stake or Byzantine agreement mechanism. The goal of Filecoin is to create a widely available and low-cost data warehouse and reorient unused computing resources to practically usable tasks, so in future versions of Filecoin we are going to completely move away from the proof-of-work consensus mechanism. “.
In the current version, for which they are conducting an ICO (during which they have already raised more than 50 million), they are implementing what they described above: “The market operates on a blockchain with its own tokens (Filecoin), which miners can earn by providing storage space information to clients. In return, customers spend Filecoin to hire miners to store their data. As with Bitcoin, Filecoin miners are vying to produce blocks with significant rewards, however, Filecoin’s mining capacity is proportional to the active storage. Thus, Filecoin mining directly provides customers with a useful service (as opposed to Bitcoin mining, the usefulness of which is limited to maintaining consensus on the blockchain). This encourages miners to collect all available storage space, which they lease to clients. The protocol brings these resources together to form a self-healing storage network that anyone in the world can rely on. “.
On the technical side, Filecoin is impressive. They introduce new concepts:
In addition, they use zkSNARKS to reduce transaction confirmation times and ensure security. This technology is used by Zcash and several other interesting projects in the world of cryptography..
There will be several types of users in Filecoin. Those who need a place to store information will bring money into the system. Those willing to provide this space will ultimately determine the value of the tokens. Filecoin will use the reputation system and other developments that will allow participants from any side to effectively use the system. Filecoin offers a more advanced system for miners than Siacoin or Storj – even people with small storages will be able to provide services within the framework of a proof-of-retrieval (proof of issuance of information).
The cost of storing information will be regulated by market mechanisms. In the case of Filecoin, miners will have a much greater degree of freedom in setting a price that suits them, than in the case of Storj, which does not allow setting the price for which miners are willing to provide storage space..
A total of 200 million Filecoin (FIL) tokens will be issued for sale. The crowdsale may be delayed, because everyone who wants to take part in it will have to get accreditation through AngelList.
The maximum token emission is limited to 2 billion FIL. Tokens from the primary block will be distributed as follows:
- 70% for miners (rewards);
- 15% for Protocol Labs;
- 10% for investors;
- 5% for Filecoin Foundation.
It should be noted that during the ICO, investors will not buy the tokens themselves, but SAFT – Simple Agreement for Future Tokens. This is done to ensure that the crowdsale takes place completely within the legal framework..
What we have?
The cloud storage and cloud computing market is valued at $ 200 billion and continues to grow. Companies and individuals are beginning to understand the benefits of always-and-anywhere storage over on-premises solutions. Protocol Labs is a professional company that is ready to compete with projects like Storj, Dropbox, Siacoin, etc..
However, as with all other projects, there are certain risks associated with Filecoin. First, a company may overestimate its capabilities and / or underestimate costs. In addition, a limited number of investors can participate in the ICO, which is why the amount that will be collected may not meet the company’s expectations. However, Protocol Labs has been operating for several years and has already achieved recognition, so most likely the team knows what it is doing..
Note that the growth factors significantly outweigh the above risks. Firstly, the project can easily lure the miners and clients of Storj and Siacoin if it turns out to be more efficient, and most likely it will. Secondly, Filecoin presents significant opportunities for promotion and collaboration. Third, there is an experienced development team behind the project, capable of meeting the needs of their customers..
Overall, Filecoin is a great long-term investment opportunity. Protocol Labs is committed to developing projects with decades of potential to unfold..
For the ICO, a special platform called Coinlist was developed. In order to take part in the crowdsale, you need to register on the platform. In addition, you must obtain accreditation in accordance with the rules for US investors. Accreditation can only be obtained by those investors whose income in the last year was at least $ 200,000 or who have at least $ 1 million in assets..
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