Why Filecoin Becomes the King of Tokens (Why Filecoin Has Delayed Its Launch)

why filecoin becomes the king of tokens Filecoin becomes the king of tokens

FileCoin has brought revolutionary influence to the entire Cryptocurrency industry with its unique economic model. As a decentralized storage protocol, it will allow anyone to build and deploy file systems, applications, or distributed computing platforms based on IPFS networks, and transfer and store content through centralized storage providers such as IPFS. Filecoin’s token economics can enable investors to achieve greater investment returns without affecting user usage

Filecoin is the first fully mortgaged and scalable blockchain project in the world. Its current market value ranks 12th, second only to Ethereum (ETH), and occupies the fourth place in the global market share ranking From this perspective, Filecoin is a successful DeFi project. It adopts a method called “reserve proof” to record and maintain the Proof of work mechanism of Filecoin block producers. The incentive plan aims to promote the demand for hard drive space excavated by miners, while rewarding the allocation of FIL to those who contribute to storage value. This is a stable asset used just like Bitcoin Over time, more and more developers are joining this field, hoping to take their research to new heights and improve their professional skills. Therefore, we believe that this is an important step in the development of Filecoin, as its design philosophy is to use technology to reconstruct the storage world and return data ownership to those who have a large amount of storage space – known as “storage customers”. However, when people place data outside the chain, they need to establish trust, which is what gives them this kind of trust Due to the high level of participation of many developers, these teams also attach great importance to the issue of storage transaction costs. According to Blockchair’s data, approximately 50% of the current storage demand comes from exchanges, rather than traditional centralized service companies For most digital currencies, the storage price is usually less than 0.01 US dollars or 0.1 BTC/piece; On the contrary, the price of Filecoin is higher than $0.0015 or 1 BTC/piece. In addition, due to high storage prices, Filecoin cannot meet the requirements of large mines and other institutions, such as hosting and hosting servers. Therefore, to address this pain point, Filecoin created a “proof of reserve”, which means that if a specific type of storage supply is locked, the percentage of effective circulation can be determined Although storage proof is not the entire purpose of blockchain technology, it is indeed a powerful foundational technology that ensures maximum utilization of storage capacity while supporting a wider range of application scenarios. Filecoin has attracted a lot of attention, especially for blockchain networks like BitTorrent. In the past few months, why has Filecoin been delayed in being launched? The reason is a lack of communication between project developers and investors Because they lack confidence in the project itself Since last year, the development of this project has been a very promising trend When it was officially released on April 15th this year, the official announcement before the launch of the main website stated that the tokens to be launched were not yet ready for launch At that time, many friends thought this was an upgrade to the testing network, but later found out that it was not really a testing network. Actually, many people know that the tokens for online testing will be released soon, but they just don’t know the number of them So when people ask if something can be achieved through this mechanism, most people don’t answer this question or think it’s a terrible performance. So how do we understand the fundamental reason for this problem? In fact, it is because the code for this project is not open source, and some people may think that this technology is not mature and requires extensive auditing to be accepted and adopted Therefore, the reason why the problem cannot be directly solved in this way is because if the project team wants to address these issues, they must first invest funds to build the project and make investments However, due to the rapid changes in the current market environment, the development speed of projects has slowed down, making many projects unable to achieve the expected results, ultimately forcing them to stagnate or even completely stop operations, thereby affecting the direction of the entire industry’s development The most crucial thing for a project is whether it can attract funds and serve the project for a period of time before restarting, which can ensure that the project truly goes forward As for whether Filecoin can smoothly enter the public eye, I think it mainly depends on whether the project team has sufficient support Firstly, I have previously written an article titled ‘About Filecoin’. The article points out that although FileCoin is a relatively early product, it is also the first validated blockchain protocol. So what is the positioning of this project? It is mainly a new distributed storage system built on Ethereum, which aims to partition data into smaller blocks while ensuring file security; In addition, it can also serve as an incentive measure (rewarding participants)

The difference between Filecoin and Ethereum is that it has its own consensus algorithm (Proof of work), which is determined according to the way miners contribute. The mining machine provides computing support, and then uses smart contracts to execute transactions. That is, it does not need to trust external nodes to obtain storage resources, rather than relying on third-party hosting The concept of “mortgage+pledge” was introduced in Filecoin, which means that users can cast new blocks by locking a token, thereby generating the token,