Sirwin
Sirwin
Storage device

The reason why FileCoin will fail!

By Aruno14 | aruno14 | 9 Jan 2022


First, the reason: FileCoin will fail because of a lack of confidence.

 

Why FileCoin is not a sure way to save your data ?

Using FileCoin and other decentralized storage like Sia or Storj, data can be stored in one or several nodes around the world, that make data reliable.

In order to incite node keep data, they have to block some collateral in FileCoin token (FIL), if they lose data, they lose their collateral. This looks to be a very normal way to make nodes store and protect data.

However, here the problem comes, let's say Node B  stores many data for many people, it has a huge collateral, and it makes all to protect the data but something unexpected happened like fire and some data are lost, as well as its collateral. Then the market will react, and token value will decrease maybe a lot, so the value of the collateral of other node will fall too, as well as their earning too, if storing data is not profitable they will simply stop to store data and many other users will lose their data and so on.

The network is over and everybody will lose their money and data.

In another hand, many mining nodes are in China, which is not a reliable place to save data (actually you can select node and avoid node in dangerous place). You can check nodes information here: https://file.app/

Conclusion

Payment and collateral in decentralized storage have to be made in a currency which is not influenced by the network itself.

In other words, the collateral have to be in a more stable currency like USD, EUR or even ETH or BTC.

 

Some comments
  • Any blockchain can have problems but in case of BTC or ETH every node keep all the data, if some nodes stop, there is no impact on the other ones.
  • Lost some money is not that important, you can earn it again, but lose your data is forever.

 

 

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aruno14
aruno14

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