Filecoin: Democratizing the World’s Cloud Storage and Data Retrieval Capabilities
Filecoin’s advanced DSN solution has overcome a slew of issues that have plagued cloud storage companies for years.
Filecoin is a cloud-based, open-source decentralized storage network (DSN) that aims to maximize data storage and retrieval.
The Filecoin network uses a mining, storage, and retrieval method to connect storage miners (providers) and retrieval miners (servers) with clients who pay for data storage and retrieval. For delivering services on the network, network participants get and transfer tokenized rewards in the form of Filecoin tokens (FIL).
Filecoin’s architecture uses sophisticated cryptographic proofs to verify the amounts and types of files on the network in order to achieve this data exchange and make the network transparent and equitable for all users.
This is intended to protect the files from unintentional modification.
- Filecoin Storage and Data Retrieval
- Filecoin Consensus Algorithms
- Filecoin Mining Structure Explained
- Filecoin Distribution and Storage
In recent years, certain issues faced by cloud-based storage providers have grown more apparent.
Lack of trust, unstable security, restricted connectivity, inadequate scalability, and excessive reliance on centralized providers are among the issues.
System hacking, for example, and inadvertent data loss are both typical issues in the current cloud storage ecosystem. As a cloud-based decentralized storage network (DSN) built on the InterPlanetary File System (IPFS) that interacts with the Ethereum blockchain and employs its unique utility currency, FIL, Filecoin presents a solution to these difficulties.
FIL is used to pay for services within the Filecoin ecosystem by network participants.
Customers pay in tokens to store and retrieve data, and miners pay in tokens to store and serve data. The Filecoin storage protocol is open-source, and all network participants own and build it, with the goal of benefiting everyone equally.
The Filecoin platform has three primary characteristics that are aimed to add value to the network’s users and make it easier to operate on a regular basis:
1. Storage and retrieval of data on Filecoin
2. Filecoin consensus algorithms
3. Filecoin mining structure
Filecoin Storage and Data Retrieval
Although data storage is an extremely valuable resource, some believe that the worldwide cloud storage sector may use a major revamp. The purpose of Filecoin is to create a network with a large number of storage providers that can be customized to meet the demands of various clients.
Lower pricing, faster retrieval, and data storage redundancy are just a few of the features that may entice clients to adopt Filecoin.
Blockchain technology and cryptographic proofs enable smart contracts between storage miners, storage providers, and clients, which are aimed to ensure those file storage agreements are not exploited or manipulated. Filecoin can also be used to store and retrieve nearly any type of data, including:
- Private and personal data
- Application data and decentralized application (dApp) websites
- Company files and contract data
- Public datasets and security archives
- Video, podcast, and website data
Filecoin Consensus Algorithms
Filecoin claims to be constructed with cutting-edge cryptographic storage proofs to ensure data is saved safely and accurately for a set length of time. Any discrepancies that may develop during the whole storage process should be resolved by the network.
The Filecoin protocol incorporates three unique proof-based approaches into the consensus algorithm of the Filecoin storage network:
- Proof of Spacetime (PoSt): This allows the Filecoin blockchain to cryptographically verify that a whole file is being preserved in an unaltered state for a specified period of time. There are two methods that makeup Proof of Spacetime. The first is Window Proof of Spacetime (WindowPoSt), in which storage miners’ pledges are audited every 24 hours and a zk-SNARK compressed proof is uploaded to the blockchain. Winning Proof of Spacetime (WinningPoSt) is the second method, in which miners are compensated for their contributions to the network.
- Proof of Replication (PoRep): This allows the Filecoin blockchain to cryptographically verify the number of copies of a stored file that have been agreed upon.
- Proof of Storage (PoSt): This feature allows the Filecoin blockchain to verify those network participants who promise to supply a certain amount of storage space actually do so.
Filecoin Mining Structure Explained
Filecoin miners compete with one another to mine and create blocks, similar to Bitcoin miners. Unlike Bitcoin, Filecoin mining power is proportional to the amount of active storage.
The method is designed to motivate miners to accumulate as much storage space as possible, which they can then rent out to clients. On the Filecoin protocol, data storage and retrieval are inextricably related to the system’s mining mechanism.
Filecoin is designed to provide a decentralized, verifiable market structure that is divided into two parts: a retrieval market and a storage market. The storage market is built on-chain, whereas the retrieval market is built off-chain.
The Filecoin protocol serves as a nerve center, controlling an order book, allocation table, and broadcasting system for transactions. This center sends and receives information for order matching and settlement for both the on-chain and off-chain sections of the system.
After that, miners and clients can set their own pricing for their services and put orders on the market. The Filecoin network benefits three key types of users throughout this process:
- Storage miners who receive tokens by providing storage
- Retrieval miners who receive tokens by serving data
- Clients who pay to store and retrieve data
Filecoin Distribution and Storage
Filecoin has developed a powerful cloud-based data storage and retrieval solution. To provide openness and equal access, the Filecoin protocol must strike a balance on both sides of the data storage market (via data retrieval and storage).
Simultaneously, the system incentivizes users to receive FIL tokens depending on a provider’s mining power in proportion to that miner’s active storage space.