Filecoin is a decentralized protocol. The protocol enables people to rent out spare storage space from their computer. It also enables to buy storage on the network. This way, anyone can join the network to create a huge source of data storage.
Advantage of filecoin
Filecoin has understated advantages over centralized data storage solutions:
- The filecoin creates a larger free market for data storage. Thus, this would bring down the prices for cloud storage.
- It brings computers across the world together. Thus, these will not be issues like space runout.
- With this, these is no need to build the new storage on computer. It uses the existing resources to store the data.
- This is a decentralized network. So, it becomes difficult to hack since there is no single point of attack like it is case of other centralized storage networks like Dropbox and iCloud.
Disadvantages of filecoin
The filecoin network have following disadvantages:
- The network does not access just one server. It accesses multiple servers in order to club together the documents when required. For this, it will require a very high internet speed.
- The filecoin network created a barrier to entry by enabling the transactions through Filecoin cryptocurrency.
- Safety concerns: Saving data is someone else computer is risky. Though, the network splits the data which can be clubbed together on request.
Mining of Filecoin
Filecoin can be mined in three different stripes:
- Storage miners – They are responsible for storing data on the Filecoin network.
- Retrieval miners – They are responsible for retrieving files.
- Repair miners- They are yet to be implemented.
It is an open-source, public and digital payment system. It is based on blockchain technology that also involves in cooperative digital storage. It was launched in 2017 by Protocol Labs and has been built on top of InterPlanetary File System.