Filecoin, a project initiated by Protocol Labs to create the world’s largest decentralized storage network, has published a crypto-economic report outlining how Filecoin will work for its users.
The document entitled “Engineering Filecoin’s Economy” describes the initial parameters of the protocol as well as future expected updates.
So if you are curious about how Filecoin is supposed to generate value, this report is of interest to you. Filecoin is aimed at competitors like AWS and other large providers who control about 77% of the market’s capacity. Cloud storage grew into an industry valued at over $ 46 billion in 2019 and is expected to continue to grow as digital data multiplies.
The Filecoin protocol allows anyone interested in becoming a storage provider to join the storage network and offer their storage for sale while certain “auxiliary” tasks are outsourced. Filecoin states that most of the data is only stored there, but users want to know that they can securely access it – whenever they want.
Filecoin states that at launch it will support 32GiB and 64GiB sectors – a basic unit of storage on Filecoin.
Filecoin miners must provide resources to participate in the economy, including a storage pledge as well as a consensus pledge. The storage must of course be reliable.
So will it work? Are customers migrating data storage to Filecoin? Will there be trust in a decentralized storage network? We will see.
Filecoin raised over $ 200 million on CoinList back in 2017. Since then, the developers have been working on the introduction of the platform. The success of the high-profile digital asset is being closely monitored by the entire blockchain industry.
Filecoin says it will evolve over time as it builds a “robust economy that can function independently and without subsidies” to build the world’s largest decentralized storage network.
Engineering-Filecoins-Economy-en August 2020