Sirwin
Sirwin

E&S Token Review: Filecoin (FIL)


Good morning Publish0x community and welcome back in this new article of my “Easy & Short Cryptocurrencies Made Accessible” area.

With this article we are going to introduce the 45th cryptocurrency of this section with the 96th “E&S” article.

We are almost at 50 crypto analyzed in our “Easy & Short”!

Today we start to see another crypto. After last 6 episodes dedicated to some “meme-coin”, today we’re back with a “normal” crypto. As probably have you already read from the title, we will talk about Filecoin (FIL)!

In the last review, I talked about a “meme-token”: Dogelon Mars, If you missed my last review, you can recover it here: https://www.publish0x.com/easyshort-cryptocurrencies-made-accessible/e-and-s-meme-token-edition-elon-the-third-largest-dog-meme-t-xwyyglk

What is Filecoin and when it is born?

The initial stages of the project refer to 2017, by Protocol Labs and Juan Benet. In the same year, hundreds of innovative and decentralized finance-based projects had slowly begun to generate interest within the market. Among these, it is possible to include Filecoin itself, which goes to combine 2 distinct concepts:

  • Decentralized Finance (DeFi).

  • Blockchain technology.

Filecoin has sought to propose and structure a true distributed and decentralized storage network for storing the most important data on the planet (defined by the official page itself as "humanity's").

To do so, it makes use of numerous in-house and state-of-the-art technologies associated with the presence of innovative protocols. Protocols that, in any case, turn out to be fully open source, that is, made available to all network users interested in using the ecosystem's features. In other words, a non-centralized file management, placed in dedicated server spaces.

Do you like what Filecoin propose?

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Image Source: https://docs.filecoin.io/about-filecoin/what-is-filecoin/

Team

Filecoin was not founded by an individual or group of people. Instead, it came from an American company called Protocol Labs. Founded in 2014 by Juan Benet, Protocol Labs was involved in the creation of underlying internet infrastructure technology long before its involvement with Filecoin.

One of the most famous and widespread inventions is the Interplanetary File System (IPFS), a decentralized web protocol designed to replace HTTP. The company continues to research, develop and implement network protocols.

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Filecoin ICO (2017)

It launched an initial coin offering (ICO) in 2017. The price of each FIL at the ICO was $1.30. Filecoin's ICO was one of the largest token sales in history at launch, raising $257 million. In the first hour alone, $186 million in funding was raised by Protocol Labs.

The ICO was open only to accredited investors, as defined by U.S. regulations. Protocol Labs sold FIL tokens to investors using a Simple Agreement for Future Tokens (SAFT). Investors received their tokens on the Filecoin network genesis block during the launch unless they chose to invest their tokens. Invested tokens received a discount on their initial purchase based on the length of time they kept their tokens locked in.

30% of FIL was created and disbursed to the genesis block, 15% to the development team to support the growth of the project, and 10% to the ICO investors. The remaining 5% is reserved for the Filecoin Foundation. 70% of the supply will be distributed over the next 16 years to the nodes in the form of block rewards.

Filecoin mining

While the presence of clients in possession of the data enables the system to function, the presence of miners is equally relevant. They guarantee specific executions, enabling the implementation of new blocks within the chain.

They manage in a parallel way to obtain possible returns in rewards (FIL). Further relevant, is that of offers, which within Filecoin are distinguished into:

  • Retrieval offers

  • Storage offers.

The first ones, relate a client and a recovery miner to be able to extract the data stored in the network's storage. The second ones, relate a client and a storage miner to be able to place a specific amount of data and information within the network. The storage miners themselves, however, have the burden of proof. They simply have to prove that they have properly stored the information.

The proofs turn out to be associated with:

  • Proof of Replication (PoRep): miners highlight their data encoding.

  • Proof of Spacetime (PoSt): miners highlight their still active archiving.

Next week we'll see new details about Filecoin and FIL token!

I invite you to follow me so you don't miss the second part of the article that will be released next Sunday.

What do you think about the future of FIL?

How do you rate this article?

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MikeZillo
MikeZillo Verified Member

Daily Trader, Mining Farm Project Manager, Blockchain consultant, Cryptocurrency evangelist. You can find more videos here https://www.youtube.com/channel/UCvyXx6I1C__zmLAYUXNZwQQ? Telegram: @mikezillo


Easy&Short. Cryptocurrencies made accessible
Easy&Short. Cryptocurrencies made accessible

In this section, we are going to create two article per each cryptocurrency/token. The first one will be technical, with a simplification of the Whitepaper and the second one will be about particulars of the coin. For example staking yields, particular functions and so on! I am sure you will like this very much!

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