- Filecoin is a decentralized storage network that serves as an incentivization layer on top of the InterPlanetary File System (IPFS).
- Filecoin utilizes idle hard drive space and bandwidth to provide data storage and retrieval services in an open market , allowing anyone to participate as a storage provider and to monetize spare hard drive capacity.
- The Filecoin blockchain has a built-in self-healing process where faulty storage nodes are detected and their stored files are redistributed to reliable nodes.
- The Filecoin network uses the FIL token to incentivize various node types to contribute to the network. Node types include:
- Chain Verifier Node : Synchronizes the Filecoin blockchain and validates the latest blocks to reach a consensus state.
- Client Node : Builds on top of a Chain Verifier Node and must be implemented by any application that is building on the Filecoin network.
- Storage Miner Node : Forms contracts with clients to store data for a period of time. Storage Miner Nodes can earn FIL whenever new blocks are created, and by completing storage contracts and adding new messages to blocks.
- Retrieval Miner Node : Forms contracts with clients to retrieve a particular set of data. Retrieval Miner Nodes earn FIL by completing data retrieval contracts. Retrieval Miner Nodes situated in a well-placed locations would earn more as they facilitate more transfers, and provide a better service due to lower latency.
- FIL will also be used as a collateral for miners to participate in the Filecoin ecosystem. The collateral required will be proportional to the storage space provided by miners. Filecoin has three different collateral mechanisms:
- Inital Pledge Collateral : Direct upfront collateral to participate in the economy. This collateral will be slashed if the miner is found to have acted maliciously.
- Block Reward Collateral : To reduce upfront collateral, block rewards are also used as collateral, block rewards for miners are subject to slashing in the event that a sector is terminated before its expiration.
- Storage Deal Collateral : Storage provided by the storage provider to collateralize deals.
- Filecoin uses two proof systems to verify secure data storage:
- Proof-of-Replication (PoRep): To verify that storage nodes have stored data on their hard drives.
- Proof-of-Spacetime (PoSt): To prove that the storage nodes are able to authenticate the sequential PoRep over a period of time.
- FIL tokens are capped at 2 billion maximum supply , with new FIL tokens being released via block rewards.
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