What Is Filecoin?

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In April 2020, there were approximately 5,392 cryptocurrencies on the market (and that number has probably burgeoned even more since then). Out of all these crypto coins, there are probably only a few that you are aware of and even fewer that you invest in.

Do you know what is Filecoin? If not, then consider reading the article below to learn more about this up-and-coming cryptocurrency.

What Is Filecoin?

Filecoin, at its essence, is a decentralized storage network and it’s based on the IPFS protocol (developed by Protocol Labs and founded by Juan Benet). IPFS stands for Interplanetary File Storage, which is a peer-to-peer storage and file system protocol.

IPFS is awesome because when a file is uploaded to the IPFS network, it’s designated a unique signature and multiple nodes can store the file or parts of it. As any node can store a copy of the file, this means that the file’s existence has resilience on the internet. Also, only people with access to that unique signature can access the files and request them.

The great thing about Filecoin is that it is designed to utilize the vast amounts of unused storage globally so that it creates an efficient market for users to pay for low-cost storage. This way storage is permanent and distributed across the web. No one owns that data you store on these decentralized servers.

If compared with Google Drive or OneDrive, that is, centralized cloud storage solutions, your data gets stored in servers owned by these corporations, which means they might have access to it.

What Is the Filecoin Price?

Even though Filecoin’s initial coin offering (ICO) on August 10th, 2017 was priced at $1, it’s valued at more than $70 right now. Get the latest Filecoin Price here.

Filecoin has already raised more than $200 million in funding, which gives this coin a lot of backing and strength. Filecoin has its own blockchain network as well, which is specialized in network storage.

Currently, Filecoin is ranked #21 based on market capitalization and its all-time high price was $236.84 from April 1st, 2021. As expected from a cryptocurrency, there are wide fluctuations in its pricing, as its all-time low price was $20.06 from Dec 29, 2020.

If you think that network storage is going to be even more crucial in our data-hungry world in the future, then consider investing in Filecoin.

Who Are Filecoin’s Competitors?

There are other storage networks that provide file storage that’s decentralized. Some of these are Storj, Siacoin, BitTorrent, Arweave, and more. Always do your due diligence before investing in any cryptocurrency.

Buy Filecoin If You Wish to Bet on the Network Storage Market

Now that you have a basic knowledge of what is Filecoin, you can invest in this crypto coin if you feel like investing in and betting on the future of the network storage market.

Don’t forget that we have hundreds of interesting articles on crypto on our website, so keep browsing and learning!