Filecoin: An Overview

Filecoin: An Overview

June 16, 2024

Overview

Filecoin is a decentralized cloud storage network where users rent out unused hard drive space. Miners earn FIL tokens for providing storage and retrieval services using Proof-of-Replication (PoRep) and Proof-of-Spacetime (PoSt) mechanisms.

2 min. read

2 min. read

2 min. read

What is Filecoin?

Filecoin is a decentralized cloud storage network that allows users to rent out unused hard drive space, similar to Dropbox. It uses blockchain technology to create a secure and transparent marketplace for data storage, providing an alternative to traditional cloud service, where miners and clients will subjectively agree on a specific price, duration, and storage capacity. 

Important Metrics of the Project

Filecoin miners are users who provide storage space on the network. Any user can connect a hard drive, run the Filecoin software, and begin offering disk space in the Storage Market. 

To participate as a Filecoin miner, users must purchase FIL from the crypto market, install the Filecoin node with the necessary hardware and software, and stake their FIL tokens as collateral based on their storage capacity and network parameters. Miners then earn rewards in FIL for providing storage and retrieval services.

Filecoin uses two proof systems, different from the usual PoW and PoS mechanisms:

Proof-of-Replication (PoRep): The client ensures that each file is uniquely stored by storage providers (miners).

Proof-of-Spacetime (PoSt): Verifies that a miner has stored data over the agreed time limit.

Disclaimer: The information provided in this research paper is for educational and informational purposes only. It does not constitute financial advice, investment guidance, or any solicitation to buy or sell financial instruments. The views expressed herein are those of the authors and do not necessarily reflect the opinions of Kollectiv.

2024