Overview
Juan Benet and Protocol Labs developed Filecoin to enable a secure and fast decentralized network. After three years of development, Fileocin’s Mainnet went live in 2020 October. This project was first discussed in 2014 as an incentive layer for IPFS (the interplanetary file system), a peer-to-peer storage network. Filecoin is an open protocol system, and it is backed by blockchain technology that records the commitments made by the network users using FIL, the native currency of Filecoin. This blockchain is based on proof-of-spacetime and proof-of-replication.
What Is Filecoin (FIL)?
Filecoin is a file sharing and decentralized storage network that leverages blockchain technology to offer its users an array of new opportunities in the cryptocurrency market. It combines different technologies to provide unique experiences for its customers and help their users to earn cryptos. Simply put, Filecoin functions just like other file-sharing platforms like Dropbox. The main difference is, rather than centralized authority for storing data, users who would like to store data can bid on the available storage provided by various miners who provide disk space.
Various Problems That Filecoin solves
- Filecoin’s protocol offers core primitives that activate a trustless, decentralized storage framework. These features and primitives include public blockchain, publicly verifiable cryptographic storage, and crypto-economic mechanisms. Filecoin offers these primitives to solve the problem of developing a trustless, decentralized storage network.
- FIL also attempts to solve some of the significant issues faced by file sharing and cloud storage sectors that suffer from centralization. Some of the crucial firms like Amazon Web services are holding substantial market shares and permission to dictate higher fees to the users who do not have reliable options. The FIL network sorts this problem out.
History of Filecoin (FIL): Background
Filecoin is a decentralized peer-to-peer network that can be used for file storage. It facilitates storing and accessing data. Miners of Filecoin can earn FIL tokens for storing the files. Filecoin users can choose different miners based on the storage needs. The history of Filecoin starts with Protocol Labs Filecoin IPO that was launched in 2017. During its launch, it has made several international headlines, and it secured $205.8 million. Further, FIL received backing from venture capitalists Andreessen Horowitz and Sequoia.
How to Buy and Store Filecoin (FIL)
- Filecoin is available to trade in most reputable exchanges, and one of the topmost cryptocurrency exchange Binance offers FIL to sell in their exchange. To trade with Binance, the user needs to complete the registration process and verify the account; once it is done, the user can start selling immediately, and they can begin to buy FIL and add them to their account.
- If the user wants to store the Filecoin or HODL for an extended period, they can use a hardware wallet. Using Hardware wallets can help the user to keep their cryptos offline through cold storage. This makes it impossible for online threats or hackers to access the holdings of the user.
Filecoin Price Prediction for Next 5 Years
- According to Filecoin price, prediction experts say that the value of FIL is capable of going towards an upward trend in the future. The predictions reveal that FIL might reach the $2000 mark within the next five years.
- As predicted by Digital Coin price shows that Filecoin price might reach $346.32 by the end of 2021 and predicts that it will go above the $800 mark in the next five years.
- A Filecoin price forecast done by Wallet Investor says that Filecoin might expect a bearish run, and by the end of the year, it might reach $199 and might rise to $500 in the next five years.
- As predicted by Longforecast.com, the value of FIL price might increase to $1227 this year, and in the next five years, it might reach $2566; it also believes that Filecoin would be a profitable long-term investment.
Best Brokers to Trade Filecoin (FIL)
Presently, many exchanges offer Filecoin to trade, where the user can buy, trade, and sell Filecoin. The user can buy Filecoin using fiat currencies like EUR, USD, GBP, and several more. FIL can also be exchanged with cryptocurrencies, and the user can also buy FIL using Binance USD, HUSD stablecoins, and Tether. Here are a few best brokers to trade Filecoin –
- Binance
- Kraken
- BitPanda and more
Wrap Up
Traders cannot assume what the future has in store for Filecoin as it has only been launched recently on the network. It offers more storage providers and storage capacity than its competitors; the feedback received from its community is very positive, and it looks like it has a bright future. The user should consider the volatility of the crypto market, and if they want to invest their money in cryptocurrency, they should research before proceeding with it. You must check out Cryptocurrency price predictions before investing in any cryptocurrency.
