San Francisco, Aug 28, 2020 – Ahead of the eagerly anticipated launch of the main network, Filecoin, the world’s largest decentralized storage network, has released its long-awaited crypto-economic report, titled “Engineering Filecoin’s Economy”.
The comprehensive report details the Filecoin value proposition, data storage market unleash, initial parameters of the protocol, and planned improvements to drive the future growth of the network. You can find the full report here.
As a new type of data storage and distribution network, the Filecoin network has set itself the goal of creating a decentralized, efficient and robust basis for human information. This mission is driven by incentives for consistent growth and development of the Filecoin network’s economy. The aim of the economic draft is to align incentives and pragmatically reward useful and reliable storage with as few rules as possible. The effect and interaction of each of these mechanisms must be considered during the design process. Further economic structures and product offerings can then result from these basic building blocks. Filecoin’s cryptoeconomic report looks at specific incentive mechanisms and economic stimuli offered by the protocol itself. For each fee, reward, or penalty in the log, it explains how it is intended to add to the long-term benefits of the network.
Interesting takeaways:
-
The cloud storage industry is valued at over $ 46 billion in 2019. Data is stored in huge data centers far away from end users, where space and utility costs are low. Content delivery networks then acquire storage space and package servers in high-density centers to cache content near users, and are valued as an industry in excess of $ 12 billion. The speed at which we generate data is increasing as videos and images complement text, resolution increases, and the number of devices accessible via the Internet increases. The growing amount of data stored worldwide will increase from 33 zettabytes (ZB) in 2018 to 175 ZB by 2025.
-
The top five storage vendors control 77% of the global Infrastructure as a Service (IaaS) market, making it difficult for market participants to compete. Every new entrant has to compete with the reputation, infrastructure and potential network effects of existing providers. Without a single platform for coordination and collaboration, small businesses cannot compete effectively with the capacity and reputation of existing providers.
-
At startup, the protocol supports 32GB and 64GB sectors (a basic unit of storage on Filecoin). The maximum sector life is determined by the proof algorithm. The maximum lifespan of the sector is initially 18 months. These numbers can be adjusted with new proofs or new deal features.
-
Filecoin miners need to provide resources to participate in the economy. The size of the promise is intended to provide a reasonable incentive to meet the promised lifespan of a sector and provide sufficient assurance of consensus. Filecoin must achieve security through the use of resources. Filecoin mining is commercial hardware that is inexpensive and easy to reuse. This means that the protocol cannot rely on just hardware as a capital investment for attackers. Filecoin also uses upfront token collateral, as in proof-of-stake protocols, which are proportional to the storage hardware committed. To get the best of both worlds: To attack the network, you need to both acquire and run the hardware, but also acquire large amounts of the token.
-
Storage agreements could be proposed through digital spaces like Twitter or email (especially for storing large amounts of data). Offers are communicated through a gossip network where customers and miners make suggestions. This free process exchange functions as a decentralized storage market. Many third party vendors operating on this platform can improve the deal proposal and matching process, including participating in exchanges or creating novel aggregators of deal bids and requests.
Further information can be found at https://filecoin.io/blog/introducing-the-filecoin-economy/.
About Filecoin
Filecoin is a decentralized network where users can store, request and transfer data via a verifiable marketplace. Filecoin is completely open source and allows people from all over the world to participate. This makes Filecoin the world’s largest decentralized storage network. The Filecoin protocol runs on an advanced and novel proof system – a combination of Proof of Spacetime (PoSt) and Proof of Replication (PoRep) to ensure unmatched efficiency and reliability.
Filecoin’s advanced technology builds the world’s largest decentralized storage network and provides a solid foundation for storing the world’s most valuable records. As an alternative to expensive cloud storage, Filecoin offers reliable storage at competitive prices, minimizes financial barriers, and enables users to take advantage of unmatched network capabilities.
Would you like to advertise? We would be happy to help you publicize your project, company or service. CryptoMode produces high quality content for cryptocurrency companies. So far, we’ve branded dozens of companies, and you can be one of them. All of our customers appreciate our price-performance ratio. Contact us if you have any questions: [email protected]
Comments are closed.