Filecoin is a blockchain platform focused on decentralized data storage with built-in economic incentives for users. It is one of the main infrastructure projects of the Web3 direction.
The creator of Filecoin is Protocol Labs, which developed the IPFS network communication protocol for distributed file storage. It also launched the popular crowdsale platform for crypto projects CoinList.
The security and verification of data stored in the Filecoin network are ensured by two consensus algorithms: Proof of Spacetime (PoSt) and Proof Of Replication (PoRep). The miners in the Filecoin network are responsible for storing and making the data available.
The Filecoin platform is a decentralized version of popular cloud storage services such as Amazon Web Services or Alibaba Cloud. It is based on the IPFS protocol but complements it with economic incentives. Anyone can become a Filecoin user by paying to store their files on the network, or add their storage hardware to the network and be rewarded with FIL native cryptocurrency.
Filecoin native coin is the main unit of payment for transactions within the network. At the same time, FIL is an incentive currency for disk space providers as well as miners who create blocks and record all transactions in the Filecoin blockchain.
FIL operates similarly to the Ethereum blockchain, where all transactions and transmitted messages are paid for in GAS. Moreover, inspired by Ethereum’s EIP-1559 coin-burning mechanism, the team has implemented a similar network resource compensation option.
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When the network experiences congestion, one should expect the Gas limit to increase for faster transactions, and vice versa a drop in network activity levels will result in lower Gas limits for transactions.
Filecoin has not skirted the decentralized financial applications (DeFi) market and Web3 by releasing a wrapped version to expand the ecosystem in other blockchain platforms. Such tokens have been issued in Ethereum, BNB Chain, Fantom, Polygon, Avalanche, Solana, Arbitrum, and Celo.
The platform’s investment potential is recognized by Grayscale Investments, the company behind the creation of the world’s largest Bitcoin trust, so the FIL token was included among Grayscale’s investment products. Another regulated financial product based on FIL, Filecoin Asset Use Swap (FAUS), is managed by DARMA Capital.
Although the token has been in existence since the autumn of 2017, it was only listed on the major exchanges after the launch of the main network in October 2020. Thus, trading volumes were negligible before the launch date of the main network. For most of this period, the price remained between $2 and $10.
It was only in the summer of 2020 that the price crossed the $10 threshold and then continued to rise until the launch of the main network. After listing on the major cryptocurrency exchanges, the token price rose sharply, but was quickly corrected and then moved sideways in the $27.30 to $35.00 range.
This continued until 21 December, when the price broke a support level. Thereafter, it fluctuated in the $20 to $25 range.
By the end of the year of 2020, the price was $24.33. Filecoin reached its highest point at the end of March 2021, when it was at $191.36, but the price of the coin soon began a sharp decline downwards.
As of today, Filecoin is trading at $4.26. Well, quite a big change in the exchange rate in just a year and a half, but many experts are confident of a near-term rise. Here are the opinions of some of them:
TradingBeasts believes it will fluctuate between $22 and $38.43 in the next 5 years.
Changelly is confident that Filecoin could hit its high of $31.71 in the next five years.
PricePrediction is determined, saying the rate could hit $34.97 in 2027.
Following DigitalCoin`s Filecoin price prediction, within 5 years FIL is capable of getting a maximum level of $22.04.
You can buy Filecoin on Godex.io cryptocurrency exchange service, which also supports more than 200 altcoins and where you can anonymously exchange, for example, Binance Coin to Monero.