Cryptocurrencies by Kevin Hermann November 2, 2021
Filecoin, an open-source, public, decentralized peer-to-peer data storage blockchain network for storing files. In return, cryptocurrency incentives are offered to the storage miners to store files safely for long periods. Users have also to pay to store files on the blockchain. The Filecoin project, a part of the Protocol Labs, is developed by Juan Benet, launched in 2014, and based in California, US. The genesis of Filecoin happened based on the InterPlanetary File System. Unlike other centralized storage providers, Filecoin grants complete privacy of the stored files, and the users retain exclusive ownership of their files. Filecoin relies on a unique consensus model called the Proof-of-Replication.
FIL is the native cryptocurrency token of Filecoin, and the storage miners can earn them for storing files securely over a prolonged period. Therefore, let us gain more information about this crypto token from this blog.
FIL’s ICO in 2017 was a record-breaking event earning $257 million. After the ICO, the crypto coins distribution started in October 2020. Filecoin’s electronic cash was created to facilitate crypto traders and organizations trading on more than one exchange and helping them gain profits from price escalations. Users can choose to store and retrieve their files from any miner on the Filecoin network. On the other hand, storage miners can earn FIL to contribute storage space to the Filecoin network and replicate the stored files.
Once a user comes on the Filecoin network to store their files by paying a small fee for the storage, there is a bidding process brought in effect to get the user the lowest possible price for storage nodes. Once a storage node is allotted to the user, the file is then encrypted, split into smaller segments, and sent to various locations on the storage network to store it. Further, these storage locations are imprinted on the Filecoin blockchain.
So, storage and retrieval deals are happening on the Filecoin network simultaneously. Therefore, miners carry on both types of deals and adjoin new blocks every half a minute.
The total supply of Filecoin is fixed at 2 billion tokens. During the genesis, 30% tokens have already been distributed. 15% of the Filecoin digital tokens have been disseminated to the development team, 10% to investors, and 5% is retained for the Filecoin Foundation. 70% of the remaining FIL coins are reserved for rewarding the miners during the mining period.
In 2021, the FIL coins can be purchased from renowned cryptocurrency exchanges like Binance, Huobi, KuCoin, Coinlist, and Kraken and also from Gate.io.
For storing the FIL coins, traders can use the wallet provided by the crypto trading platform, other than using hardware and software wallets from different providers.
The FIL token’s current price is $154.63, and it owns a market capitalization of $10 billion with 69,268,562 FIL in circulation. The speculative price movements of the FIL token are mainly based on the historical data of the token’s performance, and so the expert opinions vary remarkably. Some of the expert Filecoin price prediction is as follows:
According to the technical analysis performed by CryptoNewsZ, a bullish movement of the FIL token price is predicted. It may rise to $301.33 in 2021. Further, in 2022, the token cost can hit $538.97 and $775.06 in 2023. By 2025, the FIL token price might surge to $1421.39. You can Click here to know more about the price predictions of all cryptocurrencies.
So, Filecoin is quite a unique blockchain-based protocol created for providing two different kinds of feasibility: serving as a secure data-storage network and offering a digital currency to storage miners. Filecoin might be the first live blockchain to reach $1 billion in the shortest time. Therefore, it might present one of the best investment opportunities from the world of cryptocurrency for crypto traders.