Filecoin (FIL) - a cryptocurrency for data in the cloud

Cloud-based data storage is an increasingly common practice today. Filecoin helps to encrypt files in such a way that their hijacking is completely impossible. No wonder the FIL cryptocurrency easily collected $ 257 million at startup and is growing rapidly. Also because miners extracting it can count on a generous remuneration.

We continue the cycle of the Forex Club portal, in which we analyze and describe the largest, highest-valued, most interesting, most developmental, advanced and also the most controversial cryptocurrency projects around the world. Today it's time for Filecoin - a decentralized protocol that allows you to safely share and rent disk space where files will be stored. Part of them, actually.

How Filecoin works

The creation of Filecoin was caused by the need of the moment, or rather the dynamically developing data storage market. In recent years, exposed to hacker attacks, as well as ordinary failures, traditional servers have become the bane of companies, which were often burdened with losses of millions of millions due to lost - often irretrievably - data. 

The problem was solved by storing files in the cloud, but it was needed for full decentralization blockchain technology. This is what the Filecoin project provides, which allows you to store encrypted data on a network of computers from all corners of our planet. The IPFS protocol takes care of the security and completes the whole thing  .crypto domain. Thanks to this, it is possible to create websites on the Internet that no one (except the community) will be able to censor, and to ensure the safe storage of all data collected on them. 

It is the security resulting from decentralization that is the main distinguishing feature of Filecoin from the competition, i.e. traditional hosting companies. Here, the data is not located in one physical place, nor is it "only" divided and stored in the cloud, as in newer generation companies. They are divided into many computers because there is still encryption in unbreakable blockchain technology.

The only disadvantage is the speed of their download, because in the case of distribution to many computers and servers, the data will certainly "flow" slower than from a classic hosting company. However, this is the price of the security of their storage, but the permanent development of the project indicates that it will soon be minimized. 

This is taken care of by the Filecoin foundation, which receives 5% of FIL tokens, which are mined from October 2020. Three years earlier, as much as USD 257 million was raised as part of the ICO for the development of the project. This only shows the scale of the gauntlet that Filecoin has tossed to industry giants such as Amazon and Google. Mining new coins is motivated by a large bonus, because as much as 70% of the tokens go to miners. 15% will keep Protocol Labs, i.e. the company launching the project and the token. 10% went to investors who supported the project at the beginning of its operation.

Filecoin (FIL) quotes

FIL tokens can be traded on 22 cryptocurrency exchanges from around the world.  As of January 18.01.2021, 22, there are 314 692 2 units in circulation, out of the planned 23,79 billion. Each one costs $ 530. This translates into a capitalization of more than $ 82 million, and the daily turnover of more than $ 15 million. The peak of trading took place on October 2020, 68,04, when you had to pay $ 381 for each token. Despite the fact that the price is currently much lower than it, the FIL cryptocurrency can still boast an impressive price increase in the last year, which amounted to XNUMX%.