In October of this year, the odious blockchain startup filecoin cryptocurrency was

finally launched. Why is he so remarkable? An interesting idea and a record slow

pace of platform development and launch. The Idea of a Distributed Storage Network
was conceived by Protocol Labs back in 2014.

Three years later, a fundraising campaign was held, followed by a SAFT-crowdsale.

And what's next, and nothing. The platform, which was called the key to Web 3 and a
competitor to Google, Amazon and Dropbox for another 3 years was in the testing
stage, and the launch did not go quite smoothly. Nevertheless, the project is still
considered very promising and has high hopes for it.

After all, by joining the network with the hypermedia protocol of communication
IPFS, everyone can earn a crypt without unnecessary hassle, and residents of remote
corners of the world will no longer have difficulty downloading data. How the peer-
to-peer network of cryptocurrency filecoin (FIL) works we will tell you now.

Content qHide

1 What is FIL?
1.1 Filecoin Ecosystem
2 Mining FIL coin
3 Where to buy cryptocurrency, available exchanges
4 Secure wallet
5 Pros and cons of the project
6 Conclusion
What is FIL?

The Filecoin (FIL) project is conceived as a decentralized repository of electronic

files, using, instead of the usual http, the innovative protocol IPFS, which,
incidentally, develops the same Protocol Labs. Initially it was assumed that IPFS
and Filecoin would be tested and developed in parallel and, of course, the
introduction of such a global innovation requires huge resources and time. This
largely explains the low rate of launch of the system. By and large, Filecoin is an
upgraded version of the World Wide Web.

And why such difficulties you ask seem to be all right? Well, if you live in Europe
or North America, then at first glance, it is. Although many experts do not
consider and remove according to almost the entire population of India, Africa and
South America. The lion's share of traffic is controlled by servers located in the
EU and the UNITED States, so using the Internet while living in Nairobi or
Bangalore is quite problematic. And if someone can damage transatlantic fiber optic
cables, the citizens of developed countries will be the problem.

Filecoin Ecosystem

Filecoin's distributed network offers a ready-made solution to this problem. The

new communication protocol allows you to fragment data for storage on multiple
small nodes. If you need to download, the system will select the nearest node and
thus increase the speed of transmission of information many times over. Users of
the network will no longer be held hostage by large providers and will be able to
freely share information without censorship and covert surveillance. In addition,
everyone will be able to receive an annuity in the cryptocurrency fil, providing
for storage of data a free amount of their drives. History of appearance and team

As already said, the initiator of the project is the American company Protocol
Labs. The idea of launching a network of decentralized data storage has arisen for
a long time and in principle it has already been partially implemented in torrent
trackers. But the global application required the modernization of the
communication protocol and the creation of an incentive system to attract
participants. Without your own cryptocurrency, the second point is extremely
difficult to perform.

The project is led by Protocol Labs CEO Juan Benet. He has a track record of
graduating from Stanford University, working in the computer game studio Loki
Studios. Benet is one of the developers of the Y Combinator engine that runs
Protocol Labs. The team consists of professional programmers, blockchain engineers
and marketers. The official website of the project https://filecoin.io/.

Mining FIL coin

Miners are an integral part of the Filecoin ecosystem. Anyone can participate in
the extraction of Digital Fil coins and monetize the free space on the PC hard
drive. Mining is done by processing the data of customers who want to place their
files in storage.

Miners are divided into two categories: keepers and recipients. The first take
customers' orders, hash data and place them on the free areas of their drives. The
latter are responsible for the process of returning data to customers. Each order
is recorded in the ledger and sealed with a cryptographic key stored by the
information holder. However, without the miner-recipient to return it again, he
still can not and when placing an application for a refund, will have to pay a
storage fee. Miners combine drives and other equipment to win storage deals, store
data, and earn crypto monitors.

Keeping more files is directly related to getting more rewards for blocks. The more
storage you add, the more Filecoin tokens you earn. It is allowed that one
communication site can combine the positions of the custodian and the recipient,
but in order to accept the data for storage, you need to make a deposit. If the
custodian for some reason is unable to return the deposited files at the first
request, he will lose that money. Thus, the cryptocurrency Filecoin is mining. It
must be said that such services on the blockchain have long existed. The main
competitors of FIL ecosystem Siasoin and Burst,but the Filecoin network can take
orders to deliver data from IPFS.

Where to buy cryptocurrency, available exchanges

The Binance exchange exchange of the cryptocurrency for tokens of other blockchain
projects is provided by the Binance exchange and 28 other trading platforms. But
almost 30% of the daily trading volume is due to binance. Therefore, we recommend
using this platform.

Available pairs to trade:

FIL/USDT
FIL/BTC
FIL/BNB
FIL/BUSD
As of 01/12/2020, $31.06. A full list of exchanges and exchange pairs is available
at https://www.coingecko.com/en/Cryptocurrencies/filecoin'markets.

Safe wallet
Filecoin cryptocurrency network recently launched, so there are not many wallets
for storage. You can use the Math Wallet app, the official Binance Trust Wallet
wallet, or the Atomic crypto paper. Although the project was originally developed
on the basis of Ethereum, Filecoin mainnet has a separate blockchain.

The address of the cryptocurrency FIL starts at f, not 0x, and looks something like
this: f1aildyybkh77cuhseb343aa57wqf64lzzbixkdfq. Links to block explorers:
https://filscan.io/ and https://filfox.info/.

The pros and cons of the project

Pros of filletcoin Cons of filletcoin
The project is controlled by the national regulator The project has not yet
passed the test of time
The data is encrypted before it is sent to the store The system of remuneration
for miners is not fully thought out
The user can earn cryptocurrency by taking files for safekeeping
Relatively low cost of services
Unlimited network expansion
The coin is traded on the Binance exchange and other solid platforms
Conclusion