There are many different cryptocurrencies out there today, but few offer what FileCoin does! Filecoin is a decentralized storage network. It offers a payment system that allows users to pay for services using the Filecoin currency. The currency can also be used as a means of utility and exchange, with one Filecoin being equal to 1 megabyte of storage space on the network. With that in mind, here are some things you need to know about the coin before buying into it.
How does Filecoin work?
Filecoin is built on its own blockchain, allowing users to build decentralized applications on top of the coin. As a result, these apps can be stored either in Filecoin or through Amazon S3 storage. The benefit here is obvious – you get all of the security benefits of decentralized storage without sacrificing speed and convenience.
How safe is Filecoin storage?
Filecoin uses a variety of safety measures to protect against the loss of data. It’s encrypted on your computer, multiple copies are stored on different nodes, and a system of checks and balances between peers makes sure that there is no single point of failure which could lead to data being lost.
Who else can access my data?
Your data is only available to you, and no information is required about your identity or personal details. Other users run all storage nodes on the network, not Filecoin itself. This ensures that there are many different points of failure if one node goes down for any reason, thus making the whole system much more robust.
How to buy and store FIL tokens
To buy FIL tokens, you’ll need to open an account on a crypto exchange like Binance. From there, you can buy other cryptocurrencies like BTC or ETH, which you can then use to purchase FIL. Once you’ve got the tokens, they can be stored on your computer in any wallet where ERC-20 tokens are supported (such as MyEtherWallet).
You should store your tokens for as long as possible – they will remain under your full control at all times. When you’re ready to sell, you can either exchange them for another currency or hold out for the price to go up. While this isn’t guaranteed (prices fluctuate), high market cap currencies are less likely to be manipulated by malicious parties seeking to scam you.
Since there are so many storage points, you don’t have to worry about the network being down for any reason. A decentralized system doesn’t have a single point of failure, making Filecoin storage more stable than centralized alternatives, which are always at risk from cyber-attacks.
Files are encrypted before they’re sent out to the network, and transactions cannot be reversed. If you’ve ever lost data due to a system crash or other issue at a company like Dropbox, you know how much of an improvement this represents over traditional storage options.
History of Filecoin (FIL)
Filecoin is just one of many major cryptocurrencies that launched in 2018, but it was the first storage-based coin on our list. The idea was first proposed by Protocol Labs back in 2015, and after several years of development, the coin finally went live.
Filecoin was one of the most anticipated cryptocurrency launches of 2018, due mostly to its unique value proposition. Rather than offering a payment system like so many other cryptocurrencies, it’s focused purely on storage. Users are rewarded for renting out their unused drive space by helping to securely connect buyers with sellers around the world.
This is a major improvement from the numerous expensive centralized storage platforms which have been taken offline by malicious parties in the past. By using a trustless blockchain-based system, you can rest assured that your data will remain safe and accessible at all times.
Filecoin’s technology has been proven to work by other cryptocurrencies already on the market today, which is why it’s expected to become one of the top coins within storage.
FileCoin may be just what you’re looking for to securely store your data in the cloud. Not only does it offer privacy and security that’s second-to-none, but it also allows you to earn money from unused storage space by sharing it online with others.
So invest in FileCoin while it’s still early because once the word gets out, this coin could have a ton of value in no time.
Filecoin (FIL) FAQ’s
How is it different from Bitcoin?
Well, Bitcoin is mostly used as a way to make money. Filecoin, on the other hand, has its own utility – namely storing data securely without worrying about downtime or losing your files. In this sense, it works a lot like DropBox but with better security and no fees to worry about.
Who created it?
Protocol Labs created Filecoin. It’s actually just one of many cryptocurrencies being developed under the company, but it is easily the most high-profile of all their other projects.
How do you mine Filecoin?
FileCoin’s mining process is a lot different than other coins on the market today. First off, you can’t buy it by strapping on an advanced computer rig and plugging in some iced-out GPUs. It also doesn’t have any form of proof-of-work or proof-of-stake systems either.
Does Filecoin use IPFS?
Yes! Filecoin is actually built on top of InterPlanetary File System (IPFS), a peer-to-peer distributed file system that allows for decentralized and cryptographically secured storage across the web.
Is FileCoin centralized?
No, FileCoin is a decentralized network meaning no one party has complete control of it. This is a big deal for those who value data security and privacy.
What are the tokens used for?
FileCoin’s tokens, or FIL as they’re called among coin-enthusiasts, are what users will use to access the network’s services and pay for it in return. They can also be exchanged into other cryptocurrencies or fiat money.
Why is Filecoin so popular in China?
China is a hotbed for users interested in decentralized technology. That’s because data storage isn’t quite as secure or accessible there, especially for people living outside of large cities. So it only makes sense that they’d gravitate towards storage-oriented cryptocurrencies like Filecoin.