What is Filecoin? Filecoin is a blockchain project that allows users to rent and purchase decentralized storage spaces. In this article, you can find answers to frequently asked questions such as what is Filecoin, what it offers, what is FIL coin, how to get it, what is it used for. As Kriptokoin.com, we have prepared the project for our readers who are curious.
What is Filecoin?
Filecoin is a blockchain network that allows data to be stored and retrieved without being tied to a central server. The network works with a decentralized structure. Therefore, it is unaffected by external factors such as cyber attacks and government censorship. The network has a native cryptocurrency called FIL coin. This cryptocurrency has various use cases within the network and powers the platform.
The project was released by Protocol Labs, led by software developer Juan Benet. The network uses a protocol called Interplanetary File System (IPFS) for data storage. This protocol makes it possible to store and share data in a decentralized network. The project enables peer-to-peer (P2P) data transfer via this protocol.
What is FIL coin? What is it used for?
FIL coin is the native cryptocurrency of the Filecoin network. Cryptocurrency has several use cases. FIL holders can use their assets to lease or purchase storage areas. Transaction fees for peer-to-peer data transfers are paid with the FIL. In addition, users can earn FIL by mining. Mining within the ecosystem; It is done by performing operations such as providing storage space, data validation and archiving. Miners earn FIL rewards and payouts.
At the time of writing, FIL coin was the 36th largest cryptocurrency project with a market cap of $4.6 billion. In addition, 186.6 million FILs were in circulation.
What are the advantages?
The Filecoin network is decentralized and distributed. This secures the network and prevents it from being exposed to problems such as cyber attacks and access blocking. Users can earn FIL tokens by providing storage to the network. In this way, they can earn passive income. In addition, users can obtain token rewards through mining by providing services such as data validation and archiving via their computers.
What are the disadvantages?
The maximum supply of FIL coin is not limited. This means that the supply can increase if the platform requests it. If too many FILs are released in the future, the price of the coin may plummet. Keeping crypto assets in virtual wallets increases the likelihood of cyber attacks. This issue can be circumvented by moving assets to a hardware wallet.
What is Filecoin? How to get FIL coins?
Currently FIL coin; It is listed by many major and trusted crypto exchanges such as Binance, Huobi, Coinbase, Kraken, and Kucoin. Investors interested in the Filecoin project can purchase the token by subscribing to one of these exchanges and depositing money in their wallets.
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