What Is Filecoin and How Does It Work?

If you are having trouble getting a grip on Filecoin, fear not. While there’s a lot to learn about the decentralized file sharing service, we’ve got it all wrapped up in a simple explainer video that you can watch below.

In short, Filecoin is a decentralized Protocol that anyone can use to rent free space on their computer. Anyone can buy storage in the network.

By allowing anyone in the world to join the network, a huge source of data storage can be created. As more and more systems are computerized, this will be necessary to meet the increasing demand. And the company and its community have responded to that demand.

Since the mainnet launched in October 2020, Filecoin’s total network storage capacity has exceeded 1 EiB (Exbibyte) or over 1.1 million TB (Terabyte). In comparison, Twitter produces about 4.3 petabytes a year or 0.0043 exabytes. Data company Zeenea It is estimated that Netflix stored 60 petabytes of movies and TV shows, or six percent of Filecoin’s current capacity, as of March 2019.

So an exabyte is a lot of storage space.

Why is Filecoin important?

Right now, you and hundreds of millions of people like you are accessing content stored on the Internet thanks to a handful of cloud storage providers. The largest is Amazon Web Services (AWS), which currently has a 32% market share, while Microsoft Azure has a 19% market share.

This is a problem, especially when the service goes down it recently did. There is also the problem of competition. The US government did recently completed a 16 month report This shows that companies like Amazon have repeatedly used their size to stifle innovation, stifle competition, and use the open source community to keep driving profits.

As these centralized services have become an increasingly important part of our online lives, the need for alternatives continues to grow. This is where Filecoin comes in.

Thanks to its decentralization, the power of the network lies in its community. Filecoin itself is not the gatekeeper for storage, but the community.

By creating a marketplace for buyers and merchants that is viewed as Airbnb for storage, it will reduce reliance on centralized businesses from the Web 2.0 world and provide insight into what a Web 3 world will look like.

Funded by Protocol laboratories

This sponsored article was created by Decrypt Studio. Learn more about the partnership with Decrypt Studio.