Filecoin is a decentralized storage network that allows users to rent out unused hard drive space and get paid in cryptocurrency.
It is built on the InterPlanetary File System (IPFS), a peer-to-peer protocol for storing and sharing data in a distributed file system. The Filecoin network incentivizes users to store data by rewarding them with the native Filecoin cryptocurrency. The Filecoin project was created by Protocol Labs, a research and development company focused on building protocols, networks, and tools to improve the internet.
The project was first announced in 2017 and launched its mainnet in October 2020. The Filecoin network consists of miners, clients, and storage providers. Miners are responsible for verifying transactions on the network and are rewarded with Filecoin tokens for their work.
Clients are users who need to store data on the network and pay miners with Filecoin tokens for their services. Storage providers are users who have unused hard drive space that they can rent out to clients in exchange for Filecoin tokens. The goal of the project is to create an open market for storage where anyone can buy or sell storage space without relying on centralized services like Amazon S3 or Google Cloud Storage.
By creating an open market, it will be easier for people to find affordable storage solutions that meet their needs without having to rely on large corporations. Additionally, it will create more competition among storage providers which should lead to lower prices over time.