Filecoin, a project initiated by Protocol Labs seeking to create the world’s largest decentralized storage network, has published a crypto-economics report outlining how Filecoin will work for its users.
Entitled Engineering Filecoin’s Economy the document outlines the initial parameters of the protocol as well as future anticipated updates.
So if you are curious as to how Filecoin expects to generate value the report will be of interest to you. Filecoin is targeting competitors like AWS and other big providers that control about 77% of market capacity, noting that cloud storage has evolved into an industry valued at over $46 billion in 2019, and is expected to continue to grow as digital data multiplies.
The Filecoin Protocol will allow anyone interested in becoming a storage provider to join the storage network and offer their storage for sale, while offloading certain “auxiliary tasks.” Filecoin states that most data just sits there but users want to know they can access it with confidence – when they want.
Filecoin states that at launch it will support 32GiB and 64GiB sectors – a basic unit of storage on Filecoin.
Filecoin Miners must commit resources to participate in the economy including a storage pledge as well as a consensus pledge. The storage obviously must be reliable.
So will it work? Will customers migrate data storage to Filecoin? Will there be confidence in a decentralized storage network? Time will tell.
Filecoin raised over $200 million on CoinList back in 2017. The developers have been working on launching the platform ever since. The success of the high-profile digital asset will be closely watched by the entire blockchain industry.
Filecoin says it will evolve over time as it builds a “robust economy that can function independently and without subsidies” as it seeks to build the world’s largest decentralized storage network.