What is the value of Filecoin?

Recently, the FIL price has been falling continuously, and many investors have become anxious about it. Can FIL rise back in the future? Is Filecoin still worth investing in? Actually, you don’t have to be so worried. Let’s take a close look at the value of Filecoin.

The history of Filecoin

The IPFS technical concept first began to take shape in 2014 and has become quite mature today. As the storage layer of IPFS technology, Filecoin is very closely related to the real economy, which is original and unique in the field of blockchain, and Filecoin is still leading the distributed storage field. It is both a blockchain project and a distributed storage project.

Filecoin has two core values: Distributed storage and Distributed retrieval.

Distributed storage

Distributed storage is currently the main work of all storage miners. The process of incorporating storage space into the mainnet to obtain the reward tokens is called “mining”. At present, the storage space in the Filecoin mainnet has exceeded 15EB. In the age of the Internet, data is the most crucial element of establishing the value of the network, this logic is applicable to both the traditional Internet and the popular “metaverse”.

Distributed retrieval

If we only simply store the data, its value can’t be achieved, storage is just the beginning. In the current Web 2.0, the servers forming the content exchange network through CDN are located in every corner of the world. No matter how fast the data flows in the network, it is still limited by the physical distance, and it will have an impact on information exchange. Filecoin has greatly improved this situation by building a globally distributed storage network. In the data retrieval market, Filecoin has also made huge progress.

It is mentioned in the Filecoin project white paper that: As applications in the future ecosystem develop, it will build a smart contract similar to information exchange. Users can upload their requirements, such as storage space size, storage time, file transfer speed, to the platform in the form of an order, and the system will match the storage miners who meet the requirements to complete the entire order.

This is the vision of the IPFS/Filecoin project when it was born. At present, the Protocol Labs is striving towards the realization of the goal. During the period when the Filecoin mainnet was launched, various decentralized applications were born in an orderly manner with the support of the foundation, and the ecosystem was steadily prospering.

As a concept that has been widely concerned recently, the realization of the metaverse also requires an immeasurable amount of data. Among all the storage service providers, perhaps only Filecoin can fully undertake this mission through IPFS technology. So there is no need to be worried about the temporary drop in the price, all Filecoin needs is time.

1 comment

Leave a Reply

Your email address will not be published.