We use the internet for everything, to speak to our loved ones, to work together, to play together. The wonder of the web is that people have participated in the last 25 years sharing so much about themselves, but unfortunately we built it on a very fragile infrastructure.
We have this exponential growth in the amount of data generated and in that data that means to store and safeguard. The way the internet has evolved, there are single points of failure everywhere, we saw this play out in Egypt where suddenly one morning people woke up to the internet just completely shut down. They couldn’t reach each other, they couldn’t talk to each other.
Filecoin believes it’s incredibly important to improve the properties of the internet with the ideas of decentralization and peer-to-peer networks. So that’s what Filecoin (FIL) is working on. They built IPFS, a protocol to remove those central points of failure, to improve the resilience of the internet and the web, and to give information a stronger sense of permanence.
IPFS is really an amazing community of developers that are interested in building decentralized technologies. IPFS is a large-scale open-source endeavor with people that contribute from all over the world, they are a community of people who really care about the future of the web and who want to address the problems.
It feels like the web is consolidating at the applications layer around a small number of data monopolies, and Filecoin (FIL) is a really big believer in the re-decentralization of that wonderful resource and when we first met Juan, we realized that what he was doing is one of the real keys to making that possible.
The first phase of Filecoin to decentralize the web was to build IPFS, the next phase, is improving upon this foundation with a new protocol, which is Filecoin. With the rise of protocols like Bitcoin an Ethereum, we’ve seen massive decentralized networks form, where anyone can dedicate their computer to run the network and earn cryptocurrency tokens for doing so.
Mining for tokens is so profitable that these networks have spread globally and created the worlds most powerful computing system. Filecoin (FIL) realized that they could use the same kind of incentive structures of Bitcoin to create a decentralized storage network. There is a massive amount of unused latent storage out there.
The vision for Filecoin is to create a decentralized storage market. A network kind of like AirBnB where all of that unused storage can be sold on the market. So with this vast amount of supply joining the network that is not currently connected, Filecoin can optimize their resources and drop the cost of storage.
One of the key things about the Filecoin network is that there is a native token to the system and that’s Filecoin (FIL). It’s the medium of exchange for this decentralized market. Users spend Filecoin to hire the network to store their files and storage providers get paid in Filecoin which scales with how much storage they add and how close they are to the users.
One of the powerful things about Filecoin is that it allows individuals to be incentivized to act as parts of a network. Each individual will contribute their part and get paid for it, but the sum of all the individuals will create a network that is much more powerful than the systems that we have today.
Filecoin can be exchanged for Bitcoin, Ethereum, Litecoin, Dollars, Euros and so on. Or users can hold on to their Filecoin which may appreciate as the network grows. Anybody who uses the technology can become an investor in the technology, they can buy tokens and if Filecoin (FIL) is successful, they can share in that financial success. It’s kind of like anybody in the world able to get a seed investment in a Google, Facebook, Amazon or something like that.
Filecoin (FIL) is going to completely re-imagine the way data is stored and delivered, especially in the palces where internet service is most fragile. Just like how people mine Bitcoin all over the world, local entrepreneurs will realize they can mine Filecoin (FIL) by plugging together as many hardrives that they can get. Not only can they earn significant amounts of money, but they can also provide a valuable service to their local community.
Filcoin can move all of the really valuable precious content of the internet, this amazing compendium of knowledge into those regions so they can be served locally and give access to billions of people who are currently locked out of the web.
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