Two participants in the Filecoin network can enter into a deal in which one party contracts the services of the other for a given price agreed between the two.
Filecoin is a decentralized storage network and cryptocurrency that allows users to rent out their unused hard drive space and earn Filecoin (FIL) tokens in return. It was created by Protocol Labs, and the main objective is to create a global marketplace for data storage and retrieval.
In the context of Filecoin, a “deal” refers to the agreement between a storage client and a storage provider. When a client wants to store their data on the Filecoin network, they initiate a deal by specifying the amount of data they want to store, the duration of storage, and other parameters. The client then selects a storage provider from the network and negotiates the terms of the deal, such as the price and conditions.
Once the deal is agreed upon, the client transfers their data to the storage provider, who stores it on their allocated storage space. The storage provider is incentivized to store the data securely and reliably by earning Filecoin tokens as compensation. The deal also includes provisions for regular audits to ensure the integrity and availability of the stored data.
Filecoin’s decentralized network ensures that data is distributed across multiple storage providers, increasing redundancy and making it resistant to single points of failure. This decentralized approach to storage allows users to securely store their data and access it whenever needed.
It’s worth noting that the Filecoin network operates using its native cryptocurrency, FIL. Users can use FIL to pay for storage services and receive FIL as compensation for providing storage. FIL can also be traded on various cryptocurrency exchanges.
The Filecoin specification currently details storage deals (in which one party agrees to store data for the other for a specified length of time) and retrieval deals (in which one party agrees to transmit specified data to the other).