An Expository into the Filecoin Ecosystem
Introduction
Filecoin has grown into an efficient tool for other applications, stacks and ecosystems to store and access public digital datasets, NFTs, Web 3.0 and metaverse assets. Created in October 2020 by Juan Benet’s Protocol Labs whose unwavering goal is to intermittently “build modular solutions”, and launched on top of the InterPlanetary File System, Filecoin is centrally a data storage and retrieval ecosystem. This means that it allows users to rent out unused hard drive storage space.
Each transaction is registered on a blockchain and moderated in the blockchain network’s native currency, FIL. That’s to say, as opposed to insufficient and oftentimes rigorous work systems that affect the centralized storage frameworks, Filecoin uses proof-of-replication and proof-of-spacetime blockchain models to ensure individuals and businesses are able to store data in a decentralized manner. As a result of its decentralized model, participants on the network not only have full custodial authority over their datasets, but can easily retrieve their data anytime, anywhere, without any atom of censorship. And every network block is compensated for mining and storing digital assets in their blockchain network.
Filecoin’s growth rate has been a tremendous watch since its inception; its market capitalization is still locked at $4.32 billion even in the whole cryptocurrency price decline this year. In the long run, it has garnered more than 8 exabytes of unused storage and nearly 400+ other networks launching on the network. And this is inarguably because of its integrity, straightwardness and error-resistant nature. Regardless of this, Filecoin has somewhat remained somewhat insufficient for creators to build ribbon-complex solutions and applications through user-programmable smart contracts networks.
In lieu of this article, we will be discussing the possible inclusivity of general smart networks/actors to Filecoin and how they can aid in fostering different sufficiently intelligent storage solutions. But first, we must understand Filecoin’s work system and its communication links with other existing networks.
What You Need To Know About Filecoin
As said before, Filecoin is a decentralized file storage network with advanced built-in socio-economic incentives that ensures datasets are reliably and securely stored. Worthy of note: Filecoin operates on a blockchain and uses its native digital money, FIL, for the transactions.
Individuals known as storage providers are paid by Filecoin users to store their digital assets. Storage providers are network nodes that oversee the storage and maintenance of files in the system. In contrast to Bitcoin mining where miners donate computational output, storage providers donate storage space for consumers who might want to store their files. There’s no centralized authority to control the available storage, or to alter its price scaling. Anyone in any part of the world with a mobile phone or PC and a strong internet connection can access Filecoin, store and retrieve data, and even get paid for storing other users’ files.
Filecoin network strives mainly on two providers: storage and retrieval providers. Storage providers moderate the storing of datasets on the network, earning FILs when they store data for users. And they garner cryptographic proofs to ascertain that every store is in a secured location all along. Retrieval providers create fast entryways for retrieving data, earning some percentage of FILs from provider fees paid for a specified transaction. A provider’s opportunity to create a hash or block is dependent on the power value of their unutilized storage space.
One of the things that makes Filecoin a barnburner in the blockchain world is how it allows its end-users to store their files with ultra-cheap and affordable rates. And there’s no shortage of storage since one can negotiate a transaction with any storage provider(s) one needs. In contrast to the work system of centralized storage providers, Filecoin does not allow creation of a separate API for each provider. And they can access the location of their files through the Filecoin network to ensure that it’s utterly secured.
Filecoin Plus Smart Contracts Possibilities
Smart contracts are computers that automatically execute, moderate and record a transaction with regards to a contractual agreement between a client and the user.
There’s no doubt that the introduction of general smart contracts or layering computation into the Filecoin network opens new opportunities and dimensions for not just trustless integration duties but also improves cross-chain interoperability.
Filecoin understands these benefits that come with having smart contract programmability on the network. That’s what has led to the evolution of Filecoin Virtual Network and the recent quest to build bridges between Ethereum and Filecoin as a sufficient enabler of smart contracts in the ecosystem. Over the years, the Ethereum community has built a mausoleum of efficient and reliable smart contracts such as NFTs, ERC-20 tokens, DAOs etc. and if this benefits are brought into Filecoin will ignite a giant flame of innovation, creating room for developers to connect applications and solutions on a cross-chain bridge and even upgrade to new actors if optimization of performance measure is needed. Since Ethereum Virtual Network is hinged on the bytecode layer, Filecoin can leverage on its advanced toolchains to create a smarter storage system.
Consequently, in relation to the Filecoin network, they span across multiple benefit cases: ranging from decentralized computation of stored data to crowdfunded environmental preservation to sufficiently advanced storage systems to permanent custodian of data through multiple generations to issuance of collateral loans to time-oriented retrieval systems. They also help in the modeling of the market capital of data as tokens and forming DAOs to moderate each transaction.
More details on some of the listed benefits:
- Collateral Loans: Allows trustless allocation of loans to providers for notable reasons such as accepting FIL + deals from specific consumers, and onboard capacity within a time range.
- Decentralized Computation: One of the biggest problems in large-scale computation has always been the transfer of data. Think about carrying numberless loads on a truck to a specific location. Not only does it add latency to every transaction, but also increases its cost. The introduction of EVM smart contract will make it possible to moderate the computational jobs in a good and efficient environment, thereby allowing downstream computation on the data stored back on the Filecoin network.
- Formation of Data DAOs: Allows for usage of tokens and NFTs as units to represent value. This means that the tokens can be exchanged for services, access rights and many more.
- Alternative Storage Markets: allows storage markets to correct errors to stored data in case of any glitch through bounties, auctions or any other measure.
- And many more.
Final Thoughts
In lieu of Protocol labs’ goal to bring about modular innovations, an EVM-FVM bridge as an enabler of smart contract on Filecoin will sprout forth many possibilities in the coming future. Filecoin’s growth rate has been a tremendous watch since its inception; its market capitalization locked at $4.32 billion even in the whole cryptocurrency price decline this year. There’s no doubt that more suns will rise as the developing community of Filecoin embraces this incredible opportunity.
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