Filecoin is an open-source public crypto and digital payment system that utilizes blockchain-based solutions to provide digital data storage and retrieval services to cooperatives. The platform was made by Protocol Labs and allows users to rent out unused hard drive storage space. The platform implements some ideas from Interplanetary File system and has gained favor among developers for being the largest distributed and decentralized data storage networks. The platform also allows for data to be stored and accessed from anywhere on the globe. The platform prides itself in facilitating humanity to store its most important data on the network with guaranteed security and privacy. The type of data stored on the network includes personal files, contract data, app data, videos, security archives, websites and even company data among others.
To power its obligations, the storage network has launched a VM(Virtual Machine) called FVM(Filecoin Virtual Machine) for the purpose of revolutionizing decentralized compute power as well as unlock the potential of an open data economy ecosystem. The FVM acts as an execution environment for smart contracts on the Filecoin Blockchain Network and has since been made live on the Filecoin Main network. This recent development has added smart contracts and user programmability on the network therefore, enabling developers to explore the vast potential in an open data economy. The new tool allows developers to write and deploy custom code on the network while allowing them to innovate, integrate and run solutions centered around the Filecoin’s model of storage, retrieval and scalable data computation.
The new VM adds a lot of benefits to the network while advancing capabilities of decentralized storage. The most important factor on the data economy enshrined in the Filecoin storage framework is that users will be able to earn rewards and income from striking storage deals. In addition, the new features increase the utility of the Filecoin network therefore pumping up its value in the market. Collectively, this new Filecoin storage economy has attracted more than 3800 participants worldwide and accounts for for 13 EiB of the network’s storage capacity. In total, the Filecoin network has managed to store and secure hundreds of TiB of client data with an excess of 130 Million FIL(Filecoin’s digital asset) locked as collateral making it the largest decentralized storage network globally. Currently, Filecoin(FIL) price stands at $5.29 per coin with a circulating capacity of 220 million FIL. This brings the total market cap of the FIL to $1.17 billion.
Author’s Sentiments
For a while now, the world has been reliant on centralized storage systems that utilize conventional cloud storage systems. These centralized cloud system do not democratize data storage into open markets and have one fata flaw that is, an increased vulnerability in a single point of failure. While centralized cloud storage allows companies like Amazon Web Services and Google Cloud to monopolize and scale up to achieve efficiency in their operations, it also opens them up to risks. Filecoin’s framework on the other hand will bring diversity into the data storage industry. FVM will create boundless opportunities including formation of Data DAOs, advancement of DeFi and other layer-2 networks while empowering builders to create and entirely new ecosystem of custom apps, markets and organizations centered around the Filecoin Network.
