This section serves as a resource for developers by giving them a thorough overview of Filecoin and as a place where they can refer back to information.
Assuming readers are familiar with the fundamentals of blockchain technology and Ethereum, we will concentrate on Filecoin’s unique design features that distinguish it as a standout decentralized storage network in Web3.
Investigate Filecoin, a peer-to-peer network for file storage with built-in financial incentives to guarantee files are reliably stored over time.
Users of Filecoin pay for the ability to store their files on storage companies. Storage providers are computers in charge of keeping files safe and demonstrating that they have done so over time. Anyone can join Filecoin if they want to store their own files or get paid for storing files for other users. No one company has complete control over the amount of storage that is available or its price. Filecoin, on the other hand, promotes public file markets where anyone can store and retrieve files.
The native cryptocurrency (FIL) and blockchain of Filecoin are both present. For storing files, storage providers are paid in units of FIL. The blockchain for Filecoin stores information about transfers of FIL as well as assurances from storage companies that their customers’ files are being correctly stored.
Filecoin is based on the same technology that powers the IPFS protocol, a peer-to-peer distributed storage network that uses content addressing to enable persistent references to the data and avoids depending on particular hardware or cloud servers for addressing the content. Because Filecoin has an incentive layer on top to encourage contents to be reliably stored and accessed, it differs from IPFS in this regard.
Incentivized permanent storage, archiving Web2 datasets as a less expensive alternative to cloud storage, and Web3 native NFT and metaverse/game asset storage are just a few of the use cases that Filecoin makes possible. For instance, the Shoah Foundation and the Internet Archive use Filecoin to backup their contents, while NFT.Storage uses it to offer a straightforward decentralized storage solution for NFT contents and metadata. Additionally, Filecoin supports a wide variety of data formats, including audio and video files, enabling Web3 platforms like Audius and Huddle01 to use Filecoin as the decentralized storage backend for music streaming and video conferencing.
Users can store their files with Filecoin at incredibly low costs, and they can also confirm that their files are being stored properly.
By selecting the storage provider with the storage offer that is most suitable for their requirements, users can decide how they would like to trade off cost, redundancy, and speed. Applications that use Filecoin have the ability to bargain with any network-based storage provider for space. There is no requirement to implement a different API for each provider, unlike centralized storage systems.
Users can check the proofs on Filecoin’s blockchain at any time to make sure their files are being stored properly.
For Storage Providers
Storage service providers are now able to sell their space on the open market thanks to Filecoin.
Storage providers are individuals and businesses that manage storage providers and are compensated with Filecoin tokens for their efforts. Any computer with an internet connection and extra disk space could serve as a storage provider, as could a system designed specifically for Filecoin that has a lot of storage. The blockchain used by Filecoin rewards storage providers for providing useful storage to the internet rather than for completing pointless proof-of-work computations.
Once a storage provider adopts the Filecoin protocol, they have access to the entire Filecoin user base. Since the protocol and network of Filecoin handle this, providers don’t need to create their own storage API or market their offering on their own. By lowering entry requirements, Filecoin facilitates the development of a thriving, decentralized ecosystem of independent storage providers.
New to Web3
Welcome if you are new to Web3 or Filecoin! We believe you’ll enjoy learning about some of the fundamental ideas that underpin IPFS, Filecoin, Powergate, and other technologies, as well as how to apply them to your projects and applications.
Web3 is a movement within software development that is turning centralized applications into decentralized protocols. Instead of having a single point of control, applications built on web3 architecture can remove the middle-man, reducing the risk of censorship by big corporations and services vulnerability to denial-of-service attacks. Web3 is a trustless infrastructure that allows users to have ownership and reclaim control over their data.
In essence, Web3 is what makes Filecoin possible by enabling peer-to-peer file sharing.