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What is Filecoin (FIL) – How does it work?

By Ammar Mukhtar
Published On December 28, 2021 5:06 PM UTC
What is Filecoin (FIL) – How does it work?

New paths for technology and innovation have opened up with the introduction of blockchain technology. The storing of files over the internet is one of these innovations. Nobody, on the other hand, would want to store someone else’s files out of the goodness of their hearts. So Filecoin (FIL), a peer-to-peer network that stores files on the internet with built-in economic incentives to ensure files are stored stably over time, enters the picture.

Because the entire method is carried out via blockchain technology, the available storage and pricing are not controlled by any single organization or entity but are open to anybody.

Users of Filecoin (FIL) pay to have their data stored on storage miners. These miners are computers that are in charge of keeping files and demonstrating that they have been saved correctly over time. Through Filecoin, anyone can have their data stored, and others can be compensated for doing so. The protocol’s native coin is FIL, which is obtained by storing the coin by storage miners.

All of this is accomplished by Web3’s system being built on the web3.

Filecoin (FIL) is based on a peer-to-peer network in which peers communicate over secure channels to broadcast information to the network and move data amongst themselves. The clients, also known as nodes, are responsible for verifying the Filecoin blockchain and validating the messages in each block. Filecoin wallets can be managed and FIL received by nodes. Nodes can also make storage (agreements between clients and storage miners to store data) and retrieval (agreements between clients and retrieval miners to extract data from the network) deals with Filecoin miners and pay for them as they are completed. The miners here are in charge of executing various “deals” and creating new blocks.

Price Movement

At the time of writing, FIL is being traded at the price of $38.05 with an increase of almost 1.72% in the last 24 hours. FIL is a really strong token fundamentally. The maximum and minimum today are $41.13 and $37.25respectively. The daily trading volume has increased by almost 200%. FIL had created its ATH in October 2020 and reached a price of almost $430. After the reversal, FIL had achieved a massive value in September and got to the value of $120. FIL has a circulating supply of almost 142M coins and a total supply of almost 140M. It is listed on coinmarketcap at rank 36th. It can be exchanged on Binance, FTX, Huobi Global.

Price Prediction – Filcoin (FIL)

According to wallet investor thinks that FIL is a good investment. According to them, in one year, FIL would be worth around $58.05. In five years, the price is expected to reach a value of $143.215.

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