Filecoin is a decentralized storage network that allows users to rent out their unused storage space and enables others to store and retrieve data securely and efficiently. Launched in 2020 by Protocol Labs, Filecoin leverages blockchain technology to create a marketplace for storage providers and clients, ensuring that data is distributed across a network of nodes rather than relying on a centralized server. This decentralized model provides greater data security, redundancy, and resistance to censorship, making it a valuable alternative to traditional cloud storage services.
The network's native cryptocurrency, FIL, is used to facilitate transactions within the ecosystem, serving as a payment method for storage and retrieval services and as an incentive for storage providers to maintain reliability and availability. Users can pay in FIL to store data, while storage providers earn FIL by offering their storage space and fulfilling data requests. By integrating blockchain technology with decentralized storage, Filecoin has positioned itself as a significant player in the world of data management, promoting a more secure, efficient, and distributed internet.