Filecoin: This is an era of new technology. New devices, new gadgets with functionality come out every single day and change our world fast. Blockchain technology is a new age technology that opens a new digital world.
Digital currency, digital assets, cryptocurrency trading, digital arts, everything is based on the blockchain property. This technology provides security, protection, transparency, efficiency, authentication, and privacy.
All these advantages of the blockchain make it a perfect technology, and now fields that are more new are emerging digitally with the help of blockchain technology. Filecoin is also a new-age technology platform that is based on blockchain technology.
What is Filecoin?
Filecoin is a network that depends on peer-to-peer architecture. This platform is used to store files with built-in economic incentives, which ensure the reliability of stored files. Computers are the storage miners of this platform, and they respond to store the files correctly.
Available storage space and the price of storage do not depend on any company, and it is monitored by the open market where anyone can participate. It is not a free platform, and where users need to pay to store files.
As Filecoin is based on blockchain property, it has a native cryptocurrency known as FIL. Storage miners get FIL for storing files on this platform by users. The blockchain of this platform records transactions of storing and retrieving of any files. Send and receive files are also being recorded by the blockchain of Filecoin.
Filecoin for users:
Filecoin allows users to store their files at hypercompetitive prices and verify the files. This platform gives total p protection, security and maintains the privacy of the files of users. This platform also enables users to choose their preferred mode of trading between cost, redundancy, and speed by selecting a miner whose storage seems best suited to the user.
Filecoin for storage provider:
Filecoin creates an open market for storage sellers. Here any person or organization can buy or sell storage by paying or earring the Filecoin cryptocurrency FIL. The blockchain of Filecoin also rewards people who contribute to functional storage rather than wasteful proof-of-work computation.
How Filecoin works?
Filecoin is not exactly similar to other cryptocurrencies, as pe. As certified cryptocurrency experts, it has some fundamental differences. Therefore, the working of this platform is a little different from another blockchain platform. Here we discuss in brief the working of this network.
For every platform, the network is the backbone. The network of Filecoin is a distributed network system, which is formed by peer-to-peer network architecture. All the peers can communicate by using secure channels and can transfer data among themselves.
The peers can also discover other peers, share with the other peers, and maintain connections by using blocks or messages. In this platform, messages flow swiftly even when the medium becomes crowded and busy with thousands of peers.
Nodes are the clients in the Filecoin platform and are the primary driver of this platform. They manage the Filecoin wallet and receive or pay FIL. Nodes are the one who proposes storage and retrieval deals to the miners and delivers them with FIL.
In the Filecoin platform, many types of nodes are available, and Lotus is the most advanced node among all of them. Running the nodes is not a big or complex task in the Filecoin platform; it just needs 24*7 running programs.
Miners of Filecoin:
Miners of the Filecoin platform are the service provider. They provide services to the network by executing deals with the nodes and append new blocks to the chain of the platform every 30 seconds; in return, they receive the cryptocurrency of this platform that is FIL.
The running of Filecoin miners is a highly technical task and vital to make this platform working. The robust hardware is needed to make the miners run. For different nodes, there are other miners present in this platform. The Lotus miners are the most advanced in the Filecoin forum.
There are types of deals available, one I in the platforms, the storage deal, and another one is the retrieval deal. Storage deal is the agreement between the user and the storage miner, and this deal allows the user to store some files in the network. For that deal, storage miners must prove that the data is being held for receiving the reward.
Retrieval deals are the agreement between the user and the retrieval miners, and this deal allows the user to retrieve or extract the files from the network. Thai deals are fulfilled off-chain by using payment channels that will enable users to pay for the retrieval.
This is one of the most essential and unique features of Filecoin. Here storage miners must prove the storing of data of users to get the reward. Using Proof of Replication or PoRep, miners give the proof that they receive the data from the user and store it in the physical storage in an encoded form that no other miners can ever replicate the data.
This proof completes the process. Thai technology secures the platform from malpractice and guarantees the security of user files. Filecoin clients and other miners keep varying that the proof of each block is valid. If any miners do not follow the rules, they must pay the penalty.
This is the overall view of how Filecoin is working. And this makes this a very useful palace to store files securely.
When files include the most critical and private information, storing the files safely is the most important thing. Filecoin gives the much-needed secure space for solid files. Users can store their files without any worry. In addition, persons and organizations can get some money by selling their storage space.
The Filecoin platform makes both ends beneficial. All the cryptocurrency traders will find this platform familiar, as they are already friendly with the blockchain platform. Like buying and selling digital assets with the trading of cryptocurrencies, Filecoin is the platform for storing and retrieving files with cryptocurrencies.