In simple words, Filecoin is a cryptocurrency that allows a person to rent out extra or additional space on their computer. †It is an open-source and decentralized method of data storage and retrieval.
Filecoin is a digital payment system that allows a person to buy unused storage space on another personís computer for data storage.
Although filecoin has many advantages, there are some disadvantages linked to it like speed. As filecoin needs to access multiple servers to put together documents when required, it can take a long time depending on the internet speed.
As filecoin allows a person to save his data on someone elseís computer there are safety issues with filecoin. However, filecoin ensures the safety of the data as it splits the data in such a way that it cannot be accessed by anyone else. The data can be regrouped by the host if it is hacked but will result in meaningless data.
Cloud service providers like Google and Amazon put in a lot of money which shows there is a great demand in the market. If the trust for decentralized services is generated among the people, they can save a lot of money.