All About Filecoin (FIL)

A Decentralized Storage Network Built On IPFS.

  • Filecoin is a decentralized storage network that serves as an incentivization layer on top of the InterPlanetary File System (IPFS).
  • Filecoin utilizes idle hard drive space and bandwidth to provide data storage and retrieval services in an open market, allowing anyone to participate as a storage provider and to monetize spare hard drive capacity.
  • The Filecoin blockchain has a built-in self-healing process where faulty storage nodes are detected and their stored files are redistributed to reliable nodes.
  • The Filecoin network uses the FIL token to incentivize various node types to contribute to the network. Node types include:
  • Chain Verifier Node: Synchronizes the Filecoin blockchain and validates the latest blocks to reach a consensus state.
  • Client Node: Builds on top of a Chain Verifier Node and must be implemented by any application that is building on the Filecoin network.
  • Storage Miner Node: Forms contracts with clients to store data for a period of time. Storage Miner Nodes can earn FIL whenever new blocks are created, and by completing storage contracts and adding new messages to blocks.
  • Retrieval Miner Node: Forms contracts with clients to retrieve a particular set of data. Retrieval Miner Nodes earn FIL by completing data retrieval contracts. Retrieval Miner Nodes situated in a well-placed locations would earn more as they facilitate more transfers, and provide a better service due to lower latency.
  • FIL will also be used as a collateral for miners to participate in the Filecoin ecosystem. The collateral required will be proportional to the storage space provided by miners. Filecoin has three different collateral mechanisms:
  • Inital Pledge Collateral: Direct upfront collateral to participate in the economy. This collateral will be slashed if the miner is found to have acted maliciously.
  • Block Reward Collateral: To reduce upfront collateral, block rewards are also used as collateral, block rewards for miners are subject to slashing in the event that a sector is terminated before its expiration.
  • Storage Deal Collateral: Storage provided by the storage provider to collateralize deals.
  • Filecoin uses two proof systems to verify secure data storage:
  • Proof-of-Replication (PoRep): To verify that storage nodes have stored data on their hard drives.
  • Proof-of-Spacetime (PoSt): To prove that the storage nodes are able to authenticate the sequential PoRep over a period of time.
  • FIL tokens are capped at 2 billion maximum supply, with new FIL tokens being released via block rewards.

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