What is Filecoin (FIL)?
Filecoin is designed to utilize unused storage globally into an efficient storage market for users to pay for low cost storage.
Contrast this with centralized cloud storage solutions such as Amazon Web Services, Google Cloud, or Dropbox, where data is stored in servers owned by these private corporations.
The project was first created by Protocol Labs, spearheaded by Juan Benet, a computer scientist and engineer.
It was established in 2014 as an incentive layer for the Interplanetary File System (IPFS), a decentralized peer-to-peer storage network.
The blockchain is based on two unique protocols, the first is called Proof-of-Replication, which is the way that a storage miner proves to the Filecoin network that they have an entirely unique copy of a piece of data held for the network.
The second unique mechanism is called Proof-of-Spacetime, is that way that a storage miner proves that they are continuing to store a unique piece of data for the network.
By allowing anyone in the world to join the network, it can create a huge source of data storage. Decentralized storage systems like Filecoin allow people to be their own custodians of their data, as well as make the web more accessible to people worldwide. Since participating in the Filecoin network by mining and storing is directly related to winning more block rewards, Filecoin incentives participants to act honestly and store as much data as possible.