On top of that, established data storage solutions are centralised and therefore vulnerable to attacks. Until recently, cloud storage services were the domain of big companies that own large centralised data warehouses. One project aimed at competing against the monopoly of cloud server companies is Filecoin. In this article, we'll explore this project, the associated FIL cryptocurrency and their future.
What is Filecoin (FIL)?
Filecoin is a decentralised file storage protocol that allows users to rent out disk space and get paid for it in Filecoin (FIL) cryptocurrency. People who purchase storage space can get it at a very competitive price compared to centralised cloud services. This technology should create a global market for disk space.
Unlike cloud storage, where storage companies can control the information stored and act as an intermediary, Filecoin uses a decentralised architecture that returns control over data to users, protecting the datas integrity and making it easier to retrieve and prevent censorship.
Examples of data that you can use Filecoin to store are:
- Personal files
- Company files
- Personal information
- Application files
- Website hosting
- Protected databases
Development on the Filecoin project began back in 2014. In the fall of 2017, the project raised $257M through an Initial Coin Offering (ICO), one of the largest in crypto market history.
Filecoin was created by Protocol Labs, an American software company that aims to develop technologies for Web 3.0, the next generation of the decentralised Internet. Other significant projects from Protocol Labs are the InterPlanetary File System (IPFS) and libp2p protocols. Juan Benet, an American computer scientist, is the founder and CEO of Protocol Labs.
Initially, the launch of Filecoins mainnet was slated for early 2019, but it was postponed several times due to development difficulties. It finally launched on 15 October 2020, and the projects coin was immediately listed on the markets largest cryptocurrency exchanges.
Filecoin is a decentralised storage market — think of it like Airbnb for cloud storage — where anybody with extra hard drive space can sell it on the network. – Juan Benet
The Filecoin network is built on IPFS, a distributed storage system that connects a network of peer-to-peer nodes. Each node, in turn, stores only a fraction of the entire systems shared files. As such, IPFS provides data storage, and the Filecoin network allows users to rent out available space on a computers hard drive in exchange for a reward in FIL cryptocurrency.
Miners play a key role in keeping the Filecoin network up and running. Decentralised storage users pay Filecoin to miners to store, retrieve and distribute data. The size of miners commission is determined by the supply and demand for data storage and the user-selected transfer rate.
There are two types of miners on the Filеcoin network:
- Storage miners provide their hard drives for user data. The probability of getting a block reward depends on the amount of disk space the miner provides to the network, not on the hashing power.
- Retrieval miners extract and provide files to users outside of the Filecoin blockchain.
Heres how the Filecoin network functions. Customers place a storage claim at a specified price with a specific replication factor in the Storage Market. There, they agree to a deal with storage miners and transfer their hashed data to those miners. Storage miners place files on their disk space, which is recorded in the blockchain. The client is then provided with private keys to the files. To ensure a higher level of security, user files are stored simultaneously by several miners. Miners add a deposit to the system, which they can lose if the Internet connection is broken or they cant confirm the data storage.
To receive the data back, the client places an order on the Retrieval Market and concludes a deal with the receiving miner, who returns the data for a fee.
Filecoin uses two unique consensus algorithms to ensure that miners comply with the networks rules:
- Proof-of-Spacetime is what happens when generating a block: the network verifies that the miner actually stores data for the required period of time.
- Proof-of-Replication confirms that miners keep the stated number of file copies.
Filecoin is a token with fundamental value. Filecoin is like Bitcoin, but miners amass hard drives instead of hashing computers. – Juan Benet
FIL tokens are the Filecoin networks native cryptocurrency. Network participants use them to make payments and receive rewards.
Filecoin (FIL) price analysis
At the time of writing, the FIL token ranked 24th among cryptocurrencies by market capitalisation at $4,458,776,981.57.
FIL price statistics (as of 16/07/21)
FIL current price
Daily trading volume
FIL price history
Although the token has existed since the fall of 2017, it was only listed on large exchanges after its mainnet launched in October 2020. As such, there were insignificant trading volumes until the mainnet launch date. Throughout most of this period, the price remained between $2 and $10. Only in the summer of 2020 did the price pass the $10 threshold, from which it continued to rise until the mainnet launched.
Filecoin price prediction 2020
After being listed on major crypto exchanges, the tokens price rose sharply but quickly corrected and then moved sideways in the range between $27.30 and $35.00. This lasted until 21 December, when the price broke through the support level. After that, it moved sideways in the range of $20.00-$25.00. By the end of the year, the price was $24.33.
FIL/USDT hourly chart in 2020
FIL technical analysis
The current trend for FIL price is bearish. Despite the recent breakthrough from the falling wedge, its still too early to speak of a trend change. However, indicators show uncertainty, and there is a chance of the price going into the accumulation phase.
The nearest horizontal support levels are at $44.00 and $40.00. The horizontal resistance levels are located at $55.00, $65.00 and $77.00.
Filecoin (FIL) price prediction for 2021, 2022, 2023, 2025, 2030
Well-known crypto experts couldnt ignore a crypto as popular as Filecoin. Lets take a look at what they think about its future.
Trading Beasts FIL price prediction for 2021, 2022, 2023, 2025, 2030
Trading Beasts predict a slow decline in FILs price until November 2021. After that, it will begin to rise steadily, and, by the end of the year, the price will reach $51.56. This growth will continue in subsequent years. They estimate the coin will be priced at $111.81 by the end of 2022 and $160.90 by the end of 2024.
WalletInvestor’s FIL price prediction for 2021, 2022, 2023, 2025, 2030
WalletInvestor is even more optimistic about the prospects for FIL. According to their estimates, the token will cost $93.71 by the end of this year. They expect this trend to continue in the future, with the price reaching $188.46 by the end of 2022, $281.84 by the end of 2023 and $470.63 by the end of 2025.
WalletInvestors FIL 2021-2022 price prediction
LongForecast’s FIL price prediction for 2021, 2022, 2023, 2025, 2030
LongForecast agrees with Trading Beasts that the price will decline until November and then start to rise. However, their predictions for the more distant future diverge radically. According to LongForecast, the price will be $34.81 by the end of 2021. The uptrend will continue next year, and the price will reach $65.62 by the end of 2022. In 2023, the token will have a rather positive year, reaching $96.40 by year end. However, the price in 2024 will decline almost throughout the year and will fall to $56.67 by the end of the year.
DigitalCoinPrice’s FIL price prediction for 2021, 2022, 2023, 2025, 2030
DigitalCoinPrice also predicts a rise in the coins price but is more cautious in its optimism than LongForecast. Their forecast sees the token being worth as much as $80.74 in a year, $115.41 in 2 years, $183.20 in 5 years and $239.63 in 7 years.
DigitalCoinPrices FIL price prediction
Filecoin (FIL) overall future value predictions in general
Data storage is a promising and growing market, and Filecoin has many advantages over its competitors in the industry. In addition, experienced developers are working on the project, and fairly large investors have invested in it.
However, dont forget that the project has serious competitors, both centralised and decentralised, who were early comers to this market and are unlikely to sit idly by. Unfavourable circumstances on the crypto market can cause the tokens price to drop, even if everything is going well for the project itself.
Will Filecoin go up?
We think this is quite possible. Most crypto experts also believe that the token will grow in value in the future.
How high can FIL go?
Given the favourable development of events, $130 is a realistic price. In even more optimistic scenarios, we might see the price rise to $195 and possibly even exceed the all-time high.
Filecoin price prediction today
Right now, the tokens price is in a downtrend, but there are signs of a possible reversal. The accumulation phase is most likely to begin now.