Filecoin (FIL) Price

What Filecoin Does?

In Filecoin, users can store personal data on storage providers. These storage providers are responsible for storing files and proving that they have stored them correctly over time. Users pay for the storage services, and individuals who wish to earn by storing other users' files can become storage providers. One of the key aspects of Filecoin (FIL) is that it fosters open markets for storing and retrieving files, ensuring a fair and competitive environment for all participants.

Filecoin is designed to store data in a decentralized fashion. Filecoin's decentralized nature safeguards data location, making it difficult to censor, unlike centralized cloud storage providers like Amazon Web Services or Cloudflare. It enables individuals to retain control over their data and promotes global accessibility. Participating in the Filecoin network through mining and storage is directly linked to earning block rewards, incentivizing honest participation and maximizing data storage.

If you are curious what the live price of Filecoin today is, our comprehensive FIL price chart above can provide you with a wealth of information.

How does Filecoin work?

Filecoin (FIL) is built on top of the InterPlanetary File System (IPFS) protocol. IPFS is a peer-to-peer distributed storage network that allows for permanent references to data through content addressing. Unlike traditional storage solutions that rely on specific devices or cloud servers, IPFS enables data to be accessed without centralized dependencies. Filecoin takes this a step further by introducing an incentive layer on top of IPFS, encouraging reliable storage and access of contents.

Filecoin operates as a decentralized storage network that involves three main groups of participants: the client, storage miner, and retrieval miner parties.

Clients can either store or retrieve data by placing orders on the online storage market. These orders are fulfilled by storage miners who store the client's data and receive compensation in return. The data is stored in free sectors of hard drives, and all actions are recorded on the blockchain. Clients receive private keys to access their data.

When a client needs to retrieve data, they place a trade on the off-chain Retrieval Market. Upon the request, retrieval miners extract data and provide it to the client. Filecoin is built on the InterPlanetary File System (IPFS), which enables data storage on a peer-to-peer blockchain.

Filecoin operates on a token economy, where users exchange FIL tokens for storing their personal data with chosen miners. Miners execute trades, receive participation fees, and are compensated for with FIL tokens. The more storage miners offer, the greater their chances of receiving compensation.

Filecoin Blockchain

Filecoin is a blockchain-based network that transforms the way data is stored and accessed. By harnessing the power of blockchain technology, Filecoin provides a decentralized storage solution that is secure, reliable, and efficient.

Filecoin utilizes a unique chain of tipsets instead of traditional blocks, allowing multiple storage providers to contribute and increase network throughput. This ensures a high level of security and prevents any malicious interference.

The network is built on a unique system of actors, which are similar to smart contracts in the Ethereum Virtual Machine. These actors perform various functions within the Filecoin blockchain, such as managing storage power allocation, storage deals, payment channels, and more.

The entire network of Filecoin relies on a system of multiple nodes, which serve various functions, such as chain verification and storage/retrieval services. All participating nodes must provide chain verification. Currently, actively maintained implementations include Lotus, Venus, and Forest, which ensure the network's security and resilience.

The agreement on the Filecoin blockchain is achieved through an expected consensus algorithm. This algorithm relies on proof-of-storage for leader election, where miners with higher storage power have a higher chance of being elected to produce blocks.

The block production process involves electing leaders, verifying their eligibility, generating winning proofs, and propagating blocks. The heaviest chain, determined by a weighting function, is selected to add blocks.

Each storage provider on the Filecoin network needs to prove their replication of client data using proof-of-replication. They also need to continuously prove that they maintain the data throughout the storage deal using proof-of-spacetime. Failure to meet these requirements leads to penalties or slashing.

The Filecoin blockchain offers a user-friendly address system and compatibility with Ethereum tools through the Ethereum Address Manager (EAM) actor. It provides a seamless experience for users interacting with both Filecoin and Ethereum networks.

Use Cases and Applications of the Filecoin Network

Filecoin enables a wide range of use cases, making it a versatile solution for various industries. For example, it serves as a native storage solution for Web3 Non-Fungible Tokens (NFTs) and metaverse/game assets.

Services like NFT Storage utilize Filecoin to provide decentralized storage solutions for NFT contents and metadata. Additionally, organizations like the Shoah Foundation Internet Archive leverage Filecoin for backing up their valuable content.

Moreover, Filecoin offers incentivized permanent storage options, providing a cost-effective alternative to cloud storage for archiving large Web2 datasets. It supports multiple data formats, including audio and video files, enabling Web3 platforms like Audius Huddle01 to leverage Filecoin as the decentralized storage backend for music streaming and video conferencing.

FIL Token

Filecoin blockchain's native currency, FIL, is used to offer an economic incentive for the file storage on the network. Providers of storage services can earn FIL tokens by offering reliable storage or committing storage capacity on the network. The max supply of FIL coins is set at 2 billion, meaning that there will never be more than that number of Filecoins in existence. The total circulating supply is currently exceeding 486 million Filecoins.

The issuance of Filecoin tokens is aligned with the long-term growth and utility of the network. Filecoin employs a dual minting model for block reward minting. Up to 770 million FIL tokens are minted based on the network's performance. However, these tokens will only be fully released if the Filecoin network achieves a Yottabyte of storage capacity within 20 years, estimated to be approximately 1000 times larger than the current cloud storage capacity.

An additional 330 million FIL tokens are released on a 6-year half-life based on time. This means that approximately 97% of these tokens will be released in approximately 30 years. Furthermore, 300 million FIL coins are held in the mining reserve to incentivize future types of mining.

To encourage good behavior from the network’s participants, storage providers are required to lock Filecoin tokens as pledge collateral for consensus security, storage reliability, and contract guarantees. The amount of collateral is determined based on the projected block rewards that a miner would earn. It's worth mentioning that collateral and earned rewards are subject to slashing if the storage fails to pass reliability checks.

The total supply of 2 billion FIL tokens may never be reached in practice. This is because a significant amount of FIL tokens are burnt as gas fees, penalties, and are permanently removed from the circulating supply. This potential scarcity may cause a positive effect on the FILs price, but do your own research before you make any investment decision and buy crypto like FIL.

The live FIL price with comprehensive Filecoin market statistics is provided on the chart above. Our FIL-USD price updates frequently, so you can stay informed about the current value of Filecoin in US dollars. Our FIL converter allows you to easily convert FIL tokens to other digital currencies and vice versa, providing real-time exchange rates.

FIL Token Utilities

The FIL coin is essential for encouraging user participation and maintaining the efficiency of the Filecoin network. It serves various purposes, including:

• Storage payments. Users pay FIL to storage providers for storing their data on the network. Providers are rewarded with FIL for offering storage space and performing network tasks.

• Retrieval payments. Users pay FIL to storage providers for retrieving data. This motivates providers to keep the data readily accessible.

• Blockchain rewards. The Filecoin cryptocurrency is used to reward providers for validating and adding new blocks to the Filecoin blockchain. They receive FIL tokens as block rewards and transaction fees for processing storage and retrieval transactions.

• Governance. The FIL crypto enables network governance, allowing holders to vote on proposals and make decisions regarding the network's future development and direction.

The current price of Filecoin (FIL) is available on the chart above. Through it, you can also easily access the Filecoin price history to analyze past trends and performance. This historical data allows users to make informed decisions and understand the market behavior of Filecoin over time.

By studying the price history, investors can identify patterns, monitor volatility, and gain insights into potential price movements. This information is crucial for traders, analysts, and enthusiasts looking to stay updated on Filecoin's market dynamics and make informed investment choices.

Quick History of Filecoin (FIL)

Filecoin (FIL) is a decentralized storage network and cryptocurrency that was created by Protocol Labs. It was launched in 2017 by Juan Benet, responsible for founding Protocol Labs and inventing the InterPlanetary File System (IPFS). Benet is an American computer scientist who studied at Stanford University.

Filecoin aims to create a decentralized marketplace for storage where users can rent out their hard drive’s extra storage space and others can pay to store their data securely and privately. The project conducted an initial coin offering (ICO) in 2017, raising over $200 million.

The Filecoin mainnet was launched in October 2020, allowing users to start using the network and participating in storage and retrieval services.

The history of the Filecoin price is shown on the chart above. From it, you can know about the lowest price and highest price paid for the crypto asset and track the performance of Filecoin's price over a specific period of time.

Filecoin Foundation

The Filecoin Foundation is an independent organization that plays a crucial role in the Filecoin ecosystem. While it doesn't own or operate Filecoin, it provides valuable support to the community by assisting with problem-solving and promoting collective action.

The foundation is guided by a distinguished group of advisors who bring extensive experience and knowledge from the web3 and open-source technology communities. These advisors help foster the growth and development of the Filecoin ecosystem.

Live Filecoin (FIL) Price

FIL is the native digital asset of Filecoin, a peer-to-peer, decentralized network for file storage.

Changelly offers an interactive Filecoin price chart that offers the latest-data market statistics of the Filecoin cryptocurrency. Our FIL price chart allows you to track and analyze the historical and current market trends of the Filecoin coin.

By displaying real-time FIL USD price data, 24-hour trading volume, current market cap, recent price change, current circulating supply, and other essential indicators, you can make data-driven decisions regarding your FIL crypto investments.

Apart from viewing the exhaustive Filecoin price statistics, you can also read our Filecoin price prediction. The FIL price prediction is based on fundamental and technical analysis and suggests a potential growth of the digital asset in the future.

However, our prediction of the Filecoin price is not guaranteed because the cryptocurrency market is highly volatile, and the FIL price may swing in either positive or negative direction radically. Be cautious every time you decide to buy, sell, or trade Filecoins or other crypto assets. Follow Filecoin (FIL) news and do your own research to decide if the FIL cryptocurrency is a good investment for you.