Filecoin Price Today

What Is Filecoin (FIL)?

Filecoin is a Decentralized Storage Network (DSN) that was created to serve as a completely distributed file storage system. Filecoin is also the native cryptocurrency (symbolized as FIL) that powers the transactions that make the network run.

The idea behind the Filecoin protocol is that anyone can rent out storage space on their computer and anyone can buy storage space on the network.

Storing data on a decentralized network like this means that users don’t have to trust only one company (e.g., Google, Dropbox, Dell, etc.) with important data — documents, ledgers, and other files can be encrypted, split up, and stored on different computers around the world.

How Does Filecoin Work?

Filecoin operates on a proof-of-work (PoW) model that also includes their unique proof-of-storage component established through proof-of replication and proof-of-spacetime constructions, which requires that nodes (a.k.a. storage miners) prove that they are storing a particular file.

Users retrieve data via the Retrieval Market, where storage miners provide this proof-of-storage and users are matched via smart contract. The document’s owner then “pays” the node with the Filecoin cryptocurrency (FIL).

Any system on the network with available storage space can become a storage miner.

When a document’s owner wants to retrieve their data, they pay a retrieval miner a small amount of FIL to reassemble the components from the various nodes where it is stored.

To ensure that all data remains private during the storage and retrieval process, Filecoin uses end-to-end encryption so that neither storage miners nor retrieval miners have access to the unencrypted data.

History of Filecoin

Filecoin was created by Juan Benet and Protocol Labs in 2014.

Protocol Labs received funding for development from notable investors such as Digital Currency Group, StartX, Fred Erhsam (Coinbase’s co-founder), and Naval Ravikant (AngelList founder).

The Filecoin protocol launched in August of 2017 after users contributed $257M from a token sale to venture capital firms such as Andreessen Horowitz, Union Square Ventures, and Sequoia Capital.

Upon completion, the Filecoin token sale was the largest of its kind at the time.

How To Buy FIL

Buying FIL is easy and follows the same protocol as buying other cryptocurrencies.

It starts with finding a crypto platform — like Binance.US — that supports FIL, offers reasonable fees, gives you resources and tools to help you make the right choices, and provides access to other popular cryptocurrencies on the market.

Once you’ve found a platform that offers these and other features, create an account and verify your identity. Next, fund your account with fiat currency (e.g., U.S. dollars).

Advanced platforms, like Binance.US, will allow you to do this via an established payment service like ApplePay (check platform for details), debit or credit card, bank or wire transfer, or ACH debit from an existing bank account.

When the money arrives in your account, you can use those funds to specify how much FIL you want to buy and when you want to buy it.

After the transaction is complete, store your FIL in one of two types of crypto wallet: a cold wallet or a hot wallet. A cold wallet is an offline space like an external hard drive, while a hot wallet is an online space typically provided by the platform through which you made the purchase.

How To Sell FIL

First, open an account on a crypto platform like Binance.US, then, buy or transfer FIL to that account.

Once the platform registers the cryptocurrency, you can sell it in a few different ways, including a market buy at the current price, a limit price at a future price that you indicate, or a stop-limit order which will sell the cryptocurrency once the price reaches a specified price.

When the sale transaction is complete, the platform will deposit the funds in your account. You can then use the money to buy other cryptocurrencies or transfer it back to your bank account.

How To Trade FIL

If you’ve bought or sold FIL, you can trade it via the same basic set of steps.

Open an account on a crypto ecosystem like Binance.US. Fund your account with fiat currency so you can buy a specific digital asset. Use the platform’s tools and resources to start trading.

Before you jump into trading Filecoin (FIL), be sure you research and analyze the market in order to develop a strategy that will further your financial goals. With that information in hand, you’re ready to trade FIL.

Resources

Official Filecoin Website

Filecoin Whitepaper

Download the Binance.US app to trade on the go: iOS | Android

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