As the decentralization in the internet space is gaining momentum, several DeFi applications have started coming up to limit the influence of big tech companies and institutions. Recently, Filecoin, which is a file storage solution based on blockchain technology, is creating a lot of buzz.
It allows users to store their files on a distributed ledger tech network, where instead of proof-of-work, miners get rewarded for storing files for the clients. It uses Proof-of-Spacetime, which verifies the entirety of a file is being stored, unaltered, over the agreed-upon duration. The Proof-of-Replication verifies the agreed-upon number of copies of a file are being stored. And finally, the verifications are done by the global Filecoin blockchain that verifies proofs and automatically takes corrective action if needed.
Anyone with a capable desktop can start contributing to their spare storage space to earn rewards, as Filecoin tokens. The token is already listed on major exchanges and currently sits on number 14 by market cap in the cryptocurrency market with a market cap of $11,785,489,564.
The decentralized cloud storage will allow users to store any file in bits and pieces, much like torrent works. Unlike centralized services like Youtube, Facebook, etc., there is no censorship for your private files. Also, the algorithm makes sure that no one other than the owner gets access to the files. Content addressing and cryptographic storage proofs verify data is being stored correctly and securely over time.Filecoin combines with IPFS, a peer-to-peer distributed network protocol, to make a more efficient and secure web free from corporate control.