A Comprehensive Guide to The Filecoin Crypto Storage Network

FxBrokerReviews.org – Digital storages are vital for any business to store, retrieve and host information and reduce various online risks. Electronic data stored through Blockchain technology serve users’ needs and offer better visibility and accessibility to large-scale information storage. 

A blockchain collects information in blocks with certain storage limits within decentralized networks. However, users look for the best decentralized storage network with multiple storage & retrieval providers and user-friendly features.

In other words, users prefer keeping their data and information in several locations instead of one. The Filecoin network allows peer-to-peer file storage and has several advantages for independent service providers and clients. Read more about Filecoin and its cryptocurrency in this article.

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What is Filecoin?

Filecoin is a top decentralized digital storage network launched by Protocol labs to develop tools for internet users. The company was founded by Juan Benet, a computer scientist from America and an alumni of Stanford University. His projects Filecoin and the IPFS are widely used by crypto investors worldwide.

The Filecoin network is supported by the Filcoin cryptocurrency (FIL) and used as payment for storage services on the platform.

What are the Primary features of Filecoin?

Cost: File coin is a decentralized technology that anyone can rent computer storage space on the platform.

Scale: The Filecoin platform holds an advantage over the other storage platforms because of its extensive scalability that permits millions of users and computers worldwide. The platform brings together both storage providers and users.

Economy: Existing resources are used, and new storage computer development is sidestepped. 

Safety: Decentralized network assures utmost safety and security, preventing hacking while Apple I cloud and Dropbox are still compromised networks.

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Why choose Filecoin?

The exclusive features offered by Filecoin make it a very insistent system for file storage. These features are meant for users and businesses who store large-scale data or use cloud storage for multiple uses.

  • Open Market- File storage deals and retrievals are navigated through open markets allowing users to join without permission. Not much is needed, except for an internet connection and empty disk space. This makes the filecoin platform a thriving digital storage ecosystem for independent providers.
  • Verifiable storage – Filecoin offers built-in features that verify files and check their history periodically. The storage provider updates you on their maintenance of files through a 24-hour window. Users can check their files by scanning them to determine whether they are stored correctly, even with clients being offline. Also, you can check the track record of the storage provider anytime.
  • Reliable storage- There is no doubt about the reliability of the Filecoin network. Filecoin storage offers practical economic reasons for files to stay over time on the computer.
  • Competitive prices -The prices of storage and retrieval are decided based on the demand and supply instead of corporate prices. Miner competes with each other based on their storage, speed & reliability, and dependency on hyper-sensitive prices.
  • Reputation – Every storage provider has a track record on the blockchain. In the Filecoin platform, storage providers establish their reputation through reliability and, not on status pages and self-reported statistics.
  • Censorship resistance – No central provider is allowed to delete the file or withhold service as a resistance protocol against censorship on Filecoin. The Filecoin network consists of different people & organizations. Malicious entries and actors are excluded automatically.
  • Tradeoff Choices -Users can select their tradeoffs between speed, cost, and redundancy. Users can access any storage provider on Filecoin and store their data. They are not limited to default data centers by service providers.
  • Useful blockchain – Storage providers are counted for providing authenticated and secure storage where each file uses proof of storage and proof of replication within the blockchain. Miners can use larger hard drives to store files.
  • Store with other blockchains – Filecoin offers storage to large files, unlike other blockchains. Hence other blockchains can utilize the space on Filecoin. There will be more on filecoin in the future where Filecoin blockchain can interoperate with transactions on other blockchains.
  • Content Distribution – Users can download files from the retrieval providers. These retrieval providers prefetch files and distribute them to users by keeping the flow of the network smooth so files can download instantaneously.
  • Content Addressing – Files are named and referred to by their content and not by URLs. These files remain available always and when a file becomes popular, it can be distributed by several computers at a time saving traffic. 

    Users can verify the file download it does not matter from where and how.

  • Single protocol – The application running Filecoin can store its data by using the same protocol. Each provider has a different API to implement and the applications can support several providers with the extensive features that other providers support.
  • No lock-in – You can easily migrate to a different storage service provider because of the same APIs. Users specifically depend on a feature instead of being permanently locked into a provider. 

    This is unlike traditional lock-in methods where storage providers lock in users making the files cheap to store and expensive to retrieve.

  • Open Source Code – This code is essential because it runs clients and storage providers. The open source code reduces the need for storage providers to develop their software and both service providers and users can benefit from Filecoin’s code improvements.
  • Active Community – The Filecoin Community is active and ever-ready to answer questions and queries and help beginners get started on their trading journey. You can easily reach Filecoin’s chat and forums regarding your questions.

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Why should you become a Filecoin storage user?

Decentralized storage has several advantages over traditional storage. Filecoin offers seamless storage services such as –

  1. Be part of the Web3 – Web3 applications are on the rise, involving new datasets in the form of Metaverses and NFTs assets that require exclusive data storage. Therefore to meet the needs of new applications, Filecoin brings in new transitions to the file storage network.
  2. Preserve highly-valuable information – Filecoins focuses on strengthening and improving its operations to store highly-valuable information to giants like the Internet Archive and Wikipedia.
  3. Open network Participation – No need for permission for Filecoin and no barriers to entry for Filecoin users. Any participant can become a contributor if they have the hardware requirements.
  4. Greater control over operations – Clients and storage providers can take charge of their data sets without complications. They can control and operate the way information is used and monetized.
  5. Bootstrapping incentives – Filecoin community supports new participants and different programs that include Filecoin+, Filecoin MinerX Fellowship, and SnapDeals.
  6. Great opportunities – There is much room for growth and experimentation because it is a new technology with decentralized storage. Storage providers can explore various differentiators and cost structures. It is thebest crypto storage network for users.
  7. Passive income opportunities – Storage providers can earn ROI using multiple strategies on the Filecoin network. For example, You can earn with your datasets according to Stefaan Vervaet.

How to become a storage provider on Filecoin?

  • Explore more than 20 hours of video content on the virtual Bootcamp, learn how to provide storage on Filecoin, and earn the best crypto tokenFIL.
  • Lotus Documentation
  • Filecoin Documentation on storage providers
  • A dedicated playlist for service providers on Filecoin
  • File SP workshop including Magik6k
  • Protoschool Verifying storage on Filecoin course.

Few Guides available are – 

  • A deep dove into the storage Provider ecosystem
  • Filecoin’s island economy
  • A guide to Filecoin storage mining

You can also get in touch with the Filecoin Community through Slack and the social media channel Twitter.

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How to choose the Filecoin (FIL) wallet?

The Fil wallet you choose will depend on the purpose and use and how much you require to store. Hardware wallets have efficient storage capacity for offline backup and storage. Hardware wallets like Trezor and Ledger offer storage solutions to Filecoin. Hardware wallets or cold wallets are ideal for experienced users who wish to store large amounts of FIL.

Software wallets, on the other hand are easy to use and free of charge. Users can download software wallets as desktop or smartphone apps which can either be non-custodial or custodial. Private keys are backed and managed on the service provider’s behalf for desktop on custodial wallets. 

Your private keys are secured on the device for non-custodial purposes. Also, web wallets are free and easy to access on multiple devices. These are held wallets with less secure than software and hardware alternatives.  

Also, if you want a platform to manage FIL, you must have a reputable service to keep track of custody and security. Filecoin is a safe crypto store for beginners.

What is Proof of Spacetime (PoSt)?

Proof of spacetime refers to Filecoin storage authenticity that shows unique pieces of data and information are stored safely in the network. Post determines that participants participate honestly in the storage programs without harming the platform or taking unwanted advantage of the network.

Filecoin allows users to store databases on verifications while the data storage is proportional to its cost.

What are the Pros & Cons of Filecoin?


  • Strong market position 
  • InterPlanetary File System Protocol
  • Strong market position
  • Great use case
  • Cheaper than other services like Google Cloud and Amazon web service

Cons :

  • Uncertain ICO
  • Supply issues
  • Half of the Supply released over the next six years

How does Filecoin ensure privacy?

Filecoin enables data encryption within a decentralized network that offers a safe and secure environment, reduces points of weakness, improves data reconciliation, and optimizes resource distribution. 

There is no risk of threat because the data fragmentation is supervised by authorized personnel. Users should understand how to use Filecoin as a beginner to avoid confusion.

What is Filecoin Price Prediction?

Filecoin prediction is the comparison process of technological innovations, trends, and other currency prices to predict price fluctuations. You can see Filecoin prices in the coming years and the previous years to know the growth or decline of the crypto.

According to the recent precisions, Filecoin’s 200-day SMA will hit by Oct 5th. Also, the RSI (Relative strength index) is a popular indicator to show whether a crypto token is overbought or oversold.

Final thoughts

Filecoin is one of the best crypto token storage with minimum charges for users to start investing immediately. You can instantly deposit and withdraw money without any delays. 

Investing in Filecoin involves no costs and has a user-friendly and intuitive UI ideal for beginners. You can easily track and manage your transactions. Filecoin offers an easy interface that can guide beginners without giving them a hard time figuring out its operations. 

As mentioned above, Filecoin follows strict regulations and protocols for the safety and security of its users’ data through Order Matching and Order Settlement. Also, Filecoin has a supply of 1.97 billion (FIL) coins.

Users can conduct their transactions through the retrieval and storage markets. The Filecoin Tokens (FIL) are offered to miners who provide storage to clients.

If you are looking for fruitful suggestions on crypto, forex, and investments, follow the forex broker review platform and start investing today. Start your investment journey with Filecoin and explore the world of crypto today!

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