Filecoin (FIL) price predictions and applications | What to Know
 
 
 
 
 
 

Filecoin price predictions and applications

/ 07:47 AM June 18, 2021

Have you ever wondered about the recent Filecoin price? While most people are looking only at bitcoin, Filecoin quietly grows in value. Its investors believe its crypto cloud storage is the next step for keeping files safe and secure.

Let’s start by explaining what Filecoin is and what it does. Then, we’ll discuss how it could change the way we keep files. More importantly, we’ll weigh its pros and cons to see if it’s a worthwhile investment.

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Cryptocurrency has proven time and time again that it has uses outside of finance. For example, out of all possible applications, Filecoin chose to improve file storage. Yet, this could have a huge impact on how people and companies keep their data.

What is Filecoin (FIL)?

What is Filecoin (FIL)?

Photo Credit: filecoin.io

Filecoin is a decentralized storage network “designed to store humanity’s most important information.” Juan Benet released its whitepaper in 2014.

He proposed a network similar to Bitcoin. However, its nodes will store data. In 2017, Filecoin released its initial coin offering (ICO). Three years later, it launched the main net.

Filecoin is often called the “incentive layer” of IPFS. The latter stands for InterPlanetary File Storage. It provides peer-to-peer storage in the distributed web.

What are FIL coins?

The problem was, users didn’t want to store data in other people’s nodes. That’s where Filecoin comes in handy. Other nodes can earn FIL coins by storing other people’s data.

This is similar to bitcoin mining. It involves adding your computer to its network. Your PC will confirm BTC transactions in exchange for more bitcoins.

FEATURED STORIES

However, miners have additional roles in Filecoin. After all, it has a different function. There are three types of miners in its network:

  • Storage miners – They store data and files on the network.
  • Retrieval miners – They allow others to get files quickly.
  • Repair miners – According to the whitepaper, they’re the ones that check for faults in the network. But, unfortunately, the Filecoin network hasn’t implemented them yet.

How does Filecoin mining work?

This is how storage mining works:

  1. It all starts with a deal – A person or a client will look for storage in the Filecoin network. Once the client finds a suitable miner, they will make a deal. The client will lock up funds for it. If the miner accepts, the deal is published.
  2. The client sends the files – The client prepares their files. Then, they transfer the data to the miner.
  3. The miner receives the files – Once the miner gets the files, they pack and seal them. Next, they start submitting proofs to the chain. These are called Proofs-of-SpaceTime, and they’re sent every minute. The first PoS marks the start of the deal.

What’s more, storage miners get power value based on how much storage they give to the network. So more space means more power value.

Having more power means you have better chances of mining blocks in the network. Like in Bitcoin, this allows them to earn block rewards as FIL tokens.

Moreover, the proofs allow storage miners to earn storage fees. This is because they get it regularly from their clients based on their deals.

On the other hand, retrieval miners earn by fetching data for clients. They get the funds using payment channels that are outside the Filecoin network.

How can Filecoin change the world?

How can Filecoin change the world?

You might be wondering what makes Filecoin special. The crypto space has interesting stuff, from pooch coins to non-fungible tokens. So why is this file storage network a big deal?

After all, we already have cloud storage. But, unfortunately, this gives a few companies so much power over our files. Worse, they could sell or delete your data whenever they want.

Filecoin changes cloud storage using decentralization. We won’t need to rely on a few corporations for their file systems. Instead, we could store and share them among ourselves.

The network will make sure they’re safe. Layers upon layers of protection keep others from touching your files. Even better, Filecoin lets us benefit from each other’s spare storage.

Let’s say you have a spare computer with so much storage space. You could connect it to the Filecoin network and let others store files inside. It could earn money for you 24/7!

Also, it could make data storage cheaper and easier. Some companies have entire floors just for huge servers. Filecoin may help them keep files without those giant computers!

Pros of Filecoin

  • Storage isn’t in just one place – If someone hits a location for cloud storage, everyone using it will lose their files. Filecoin lowers the risk by spreading the files among several computers.
  • It’s scalable – In other words, the Filecoin network was intended to grow larger. So as more people register as nodes, the network expands.
  • The Filecoin network allows new functions – It can get new features without major issues.
  • It’s free! – You don’t have to pay to use it.

Cons of Filecoin

  • It’s still being developed – There’s still work being done on Filecoin. For example, repair miners are planned in the whitepaper. Still, the network hasn’t implemented them.
  • It’s too complicated – If you don’t know much about systems like Filecoin, you might like using it.
  • Losing a node means losing data – Placing files in the network means putting them in someone else’s computer. If that goes down, you may lose your files. It’s unlikely, but still possible.

Should I invest?

At the time of writing, the Filecoin price is around $67.78. It’s been going down lately. Also, there hasn’t been much trading volume either. So this could be your chance to buy them cheap.

Some experts believe it may reach $110.56 by the end of 2021. Then, it could hit $150.61 by the end of 2022. There are other reasons to be bullish about Filecoin, though.

Numerous companies are already using Filecoin. It has collaborations with major companies like Microsoft and Netflix. Filecoin also works with the #2 crypto Ethereum.

Various tools were launched last year to allow coordination between Ethereum and Filecoin. But, unfortunately, 2.0 may launch soon. This will highly enhance the ETH network.

This could mean improvements for Filecoin price as well. If this happens, more people may invest. It’s supposed to come out this year, but it’s more likely to arrive in 2022.

Final Thoughts

Always take investment advice with caution, especially for crypto. The market is well-known for having sudden and unpredictable price movements.

This means it can be difficult to know if the Filecoin price will go up or down soon. Yet, it has real-world value, so it has a good chance of long-term growth.

This is why you should learn about cryptos first. Understand how they work. Know related terms such as market cap and blockchain. Never invest in anything you don’t understand!

The internet lets you access all this important information for free. For example, CoinMarketCap lets you see the real-time prices. In addition, articles from Inquirer USA and CoinDesk give valuable insight into cryptos.

Learn more about Filecoin

Is Filecoin a good investment?

It could be a worthwhile investment due to its real-world uses. However, it’s hard to predict how the Filecoin price will move in the short term. Therefore, you may want to HODL them for long-term growth.

What is the value of Filecoin?

At the time of writing, the Filecoin price is roughly $67.78. Of course, this could have changed dramatically as you’re reading this. Prices tend to move wildly in the crypto market.

Can I buy Filecoin?

You may buy Filecoin at the major exchange platforms like Binance and Coinbase. They let you see the current prices too. In addition, you may purchase FIL tokens by creating an account.

Disclaimer: This article is the author’s personal opinion, differing from the “official” statements or facts. All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by Inquirer.net constitutes an investment recommendation, nor should any data or content published by Inquirer.net be relied upon for any investment activities.

Usa.Inquirer.net strongly recommends that you perform your own independent research and/or speak
with a qualified investment professional before making any financial decisions.

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TAGS: crypto, Filecoin, interesting topics, USFINANCE
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