How Filecoin works?

Important facts:

  • Filecoin is a modern blockchain platform designed to make data storage for users the most commercially profitable. The main internal token is FIL. The task of the developers was to get on the same level with the available Amazon and Google servers, with full decentralization.
  • The authors of the platform, Protocol Labs, were previously marked with another product. They created the IPFS global file system for distributed storage of information. They also have the CoinList web service on their account, where you can make transactions with tokens released to the market for the first time.
  • Filecoin provides serious security to its participants with the help of mechanisms: PoSt and PoRep. Mining in Filecoin involves managing the storage system and transferring hard disk space, for which they receive their FIL currency as a reward.

Historical background:

  • 2014 can be considered the period of formation of the platform. The California-based Protocol Labs team has started creating a decentralized system, announcing this. By the way, the first blockchain algorithm was PoW (Proof-of-Work).
  • 2014-2017-a more serious modernization of the system. Where manufacturers abandon PoW in favor of a more advanced consensus protocol Inter Planetary File System. IPFS has higher speed, bandwidth and a number of other advantages.

The development of the IPFS system is also assigned to Protocol Labs, the idea belongs to X. Benet. This alternative has pushed the HTTP and HTPPS protocols on the market.

  • 2016 was the year when a large marketplace used the InterPlanetary File System in its work. Open Bazaar existed for several years as a decentralized product, but ceased operations in 2021.
  • 2017 – is a successful token sale for the company. More than $25 million was invested in Filecoin tokens at the ICO. The sale was made on the Coin List-its own development. The token sale was carried out according to all FIN standards. ICO legislation, in compliance with legal rights.
  • 2020 – launch of the main network for storing FIL data. The event took place in October.
  • 2022 – a major investor Tiger Global Management, which focuses on the Internet business and the crypto market, has chosen among other projects a promising Filecoin. By the way, the company’s planning horizon is measured for decades, which reinforces the belief in the viability of the project.

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