Ethereum lost top #2 spot on Coinmarketcap
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Ethereum lost top #2 spot on Coinmarketcap


I am aware that headline could be a bit "click byte", but it is rather true, when looking to total market capitalization, since Filecoin is valued $423B on Full diluted market capitalization.

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It was a major rise in last 30 days, since Filecoin started March at $38.46 and finished it on cca. $200.

Filecoin launched their main-net in October 2020, with a major change in document search on the internet, whereas Filecoin system uses CID - Content Identifier, where document is searched based on the unique document data, independent from location where document is stored.
Current internet is using URL - Uniform Resource Locator, where from the name could be concluded that document is searched based on location, rather than unique properties.

Main difference between the two systems is that URL uses centralized servers to store data on them, and all data had to be pooled from those servers, which are generally located far away from you. Each user is pooling new copy, which brings down the network and creates bottlenecks on the network. However, most important is that user cannot authenticate downloaded document, since all the information are based just on the document location.

CID on the other hand provides method to search documents based on Content, and all location that store searched document could be download location, where you will use closest one. It is important to distinguish two main improvements, compared to URL:

  • storage location will send the document to closest LAN network, and all users will get the file from closest location, so that bottlenecks on the network are not created, or could be localized
  • document can be authenticated based on unique properties, or content identifiers, which is a trustless process

regarding network, Filecoin main-net have mining in process, through block, storage and retrieve reward, where each one is:

  • block reward is mining reward, assigned to miners that provides new blocks
  • storage reward, for storage provision for the network, and Filecoin at the moment provides cca. 3,7 EiB storage capacity (EiB - exbibyte)
  • retrieve reward, that is basically reward for file provision by request from third-party users

Filecoin uses two concepts to secure files on main-net, called PoR (Proof-of-Replication) and PoST (Proof-of-SpaceTime), where former is used for verification that file is indeed on server storage provided by miner, and later is used to measure time that file is stored on blockchain.

At the moment, circulating supply is at cca. 3% from maximum supply, and stands on 63 million tokens, which provides market capitalization at $13B and ranks FIL on position nine by market capitalization. Back to the beginning, when counted by total number of tokens, that is at 2 billion, fully diluted market capitalization is on $400B+ and ranks is just behind Bitcoin.

Mining is based on three different mining reserves, Baseline Minting (770M FIL tokens), that is mined based on network performance, Simple Minting (330M FIL tokens), based on halving rewards, and 97% these tokens will be provided in next 30 years, and Mining Reserve (300M FIL tokens), that will be used based on community decision to incentivize future mining types and rewards.

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Filecoin explorer - https://www.filscout.com/en



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