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About the Project

Filecoin is a cutting-edge peer-to-peer network designed to revolutionize file storage by offering reliable, decentralized solutions with built-in economic incentives. Leveraging advanced cryptography, Filecoin ensures the secure and permanent storage of files over time. In this ecosystem, users pay storage providers—computers dedicated to securely storing and proving the correctness of files over time. This innovative approach allows anyone to participate, either by storing their files or by earning compensation for offering storage services. Unlike traditional storage systems controlled by single entities, Filecoin fosters open markets for both storing and retrieving files, ensuring competitive pricing and widespread accessibility.


Built atop the InterPlanetary File System (IPFS), a peer-to-peer distributed storage protocol, Filecoin enhances the foundational IPFS technology with an incentive layer. This addition promotes the reliable storage and accessibility of content, setting Filecoin apart by offering more than just decentralized storage. It supports a variety of use cases, from storing Web3 native assets like NFTs and game assets to providing an affordable alternative for archiving large Web2 datasets. Notable projects such as NFT.Storage, Shoah Foundation, and the Internet Archive rely on Filecoin to safeguard their valuable data. Additionally, platforms like Audius and Huddle01 utilize Filecoin to support decentralized music streaming and video conferencing, thanks to its versatile support for various data formats, including audio and video files.


Filecoin’s robust and decentralized storage network presents a transformative solution for data storage needs across industries. By integrating economic incentives and leveraging peer-to-peer technology, Filecoin not only ensures the security and permanence of data but also democratizes access to storage solutions, empowering users and providers alike to engage in an open, competitive market.

Use Case

  • Decentralized Storage for NFTs

    • Filecoin powers platforms like NFT.Storage, providing secure, decentralized storage for NFT content and metadata.

  • Web3 Assets Storage

    • The network supports Web3 native assets, including metaverse and game assets, ensuring their availability and reliability.

  • Affordable Archival for Web2 Datasets

    • Organizations like Shoah Foundation and Internet Archive use Filecoin as a cost-effective alternative for archiving large datasets.

  • Music Streaming

    • Platforms like Audius leverage Filecoin to offer decentralized storage for music files, enhancing security and accessibility.

  • Video Conferencing

    • Huddle01 utilizes Filecoin to support decentralized video conferencing, ensuring data privacy and reliability.

  • Incentivized Permanent Storage

    • Filecoin’s incentive layer ensures data is stored reliably over time, appealing to users needing long-term data storage solutions.

  • Decentralized Applications (dApps)

    • Developers can build dApps using Filecoin's storage capabilities, benefiting from its secure, scalable, and decentralized infrastructure.

  • Secure Data Backup

    • Filecoin provides a robust solution for backing up critical data, ensuring it remains accessible and secure across decentralized nodes.

  • EVM-Compatible Smart Contracts

    • Filecoin supports Ethereum-compatible smart contracts, enabling seamless integration with existing Ethereum tools and ecosystems.

  • Payment Channels

    • Filecoin's Payment Channel Actor facilitates efficient and secure payment transactions within the network, enhancing usability for financial applications.

Technicals

  • Distributed Database

    • A blockchain is a distributed database shared among network nodes, providing a secure and transparent ledger.

  • Tipsets

    • Filecoin's blockchain consists of tipsets, sets of blocks with the same height and parent tipset, enhancing network throughput and security.

  • Actors

    • Actors in Filecoin are similar to smart contracts in Ethereum, providing state and methods for network interaction.

  • Built-in Actors

    • Filecoin includes several built-in actors such as the System Actor, Init Actor, and Reward Actor, each powering different network functions.

  • User-programmable Actors

    • Developers can create custom actors, similar to smart contracts, to interact with Filecoin's built-in actors.

  • Distributed Randomness

    • Filecoin uses the Drand protocol for fair and verifiable randomness in leader election.

  • Nodes

    • Filecoin nodes perform various functions like chain verification, storage provision, and retrieval services, ensuring network robustness.

  • Protocol Implementations

    • The Filecoin network supports multiple protocol implementations, including Lotus, Venus, and Forest, to ensure security and resilience.

  • Addresses

    • Filecoin addresses identify actors and encode information, with five types starting with 'f' for Mainnet and 't' for Testnet.

  • Consensus

    • Filecoin's Expected Consensus (EC) uses a probabilistic Byzantine fault-tolerant protocol with leader election based on proof-of-storage.

  • Block Production

    • Blocks are produced through a process involving leader election, randomness verification, and chain selection by weight.

  • Finality

    • EC enforces soft finality, rejecting blocks that fork off before a set round to ensure chain stability.

  • Proofs

    • Filecoin uses proof-of-storage mechanisms like Proof of Replication (PoRep) and Proof of Spacetime (PoSt) to verify data storage.

  • Slashing

    • Storage providers face penalties (slashing) for failing to maintain reliable storage or acting maliciously, ensuring network integrity.

Token

  • Native Currency

    • Filecoin (FIL) is the native utility token used to incentivize storage on the Filecoin network.

    • FIL has a maximum circulating supply of 2 billion tokens, ensuring scarcity and value over time.

  • Incentivization

    • Storage providers mine FIL by offering reliable storage services or committing storage capacity.

    • Filecoin’s dual minting model aligns token issuance with network growth and utility.

  • Dual Minting Model

    • Baseline Minting: Up to 770M FIL tokens are minted based on network performance, aiming for a Yottabyte of storage capacity within 20 years.

    • Simple Minting: 330M FIL tokens are released over time with a 6-year half-life, ensuring gradual distribution over approximately 30 years.

  • Mining Reserve

    • 300M FIL tokens are reserved to incentivize future mining activities, promoting ongoing network expansion.

  • Vesting

    • Mining rewards vest over 180 days to encourage long-term network commitment, with 75% vested linearly and 25% available immediately.

    • Additional FIL tokens are vested to Protocol Labs teams, Filecoin Foundation, and investors over several years.

  • Collateral and Slashing

    • Storage providers lock FIL as collateral for security and reliability, with penalties (slashing) for failing reliability checks.

    • Collateral and rewards are at risk if storage providers do not meet the required standards.

  • Total Supply

    • While FIL has a maximum supply of 2 billion, the actual circulating supply will be lower due to token burning through gas fees and penalties.

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