Filecoin is a decentralized file storage system that uses its own native blockchain and has a native asset, FIL. The Filecoin system relies on checks and balances to provide an open market for incentivized file storage, using FIL in tandem. The Filecoin system was constructed on top of the InterPlanetary File System (IPFS). Is Filecoin built on Ethereum? No, the Filecoin system works with its own mainnet blockchain launched in the latter half of 2020.
How does Filecoin work?
Filecoin is a blockchain-based system that lets users (clients) pay FIL to have their files/data stored with providers, who in turn earn FIL for their work. Filecoin participants with extra computer storage who meet specific requirements can store data for clients. These providers help the Filecoin blockchain run. Gas fees also apply to Filecoin’s system.
The Filecoin system relies on several parameters that enable an open market for clients to pick which providers they want to store their data. In short, clients and providers enter into agreements, with part of the process involving the client locking FIL into a wallet. That FIL is paid to the provider little by little.
The client receives proof-of-replication (PoRep) from the provider, confirming correct data storage and deal commencement. Proof-of-spacetime (PoSt) is used to confirm the proper storage of that data on a consistent basis. PoSt proofs are posted regularly to the Filecoin blockchain as proof of proper storage.
Filecoin (FIL) price
Filecoin itself does not have a direct price, but FIL is an associated crypto asset that can be priced in U.S. dollars (USD). In that regard, the top of the page shows the Filecoin price today as an FIL to USD live price. Among other things, this page also includes the Filecoin market cap (FIL’s market cap) and a Filecoin price chart showing Filecoin price history (FIL’s price history).
