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"In the Filecoin network, nodes have the ability to contract with clients, offering to store their data for an agreed-upon period of time in exchange for filecoin. In an official blog post, the Filecoin team described the process of storage mining as follows: Image source: Filecoin Storage mining explained These are newly minted FIL generated in the process of block mining.Ī simplified overview of the Filecoin model. Although this is not shown in the picture below, miners can receive additional FIL through block rewards.
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The blockchain’s native FIL token provides economic incentive to storage provides, also called Filecoin miners (or punishment for those who do not store the files reliably) and acts as a general medium of exchange in the Filecoin network.Īs seen in the picture below, users pay FIL to store and access the files, while miners get paid for their service in FIL. The IPFS is combined Filecoin’s own blockchain, which ensures the reliable and consistent storage of files. About Filecoinįilecoin is a decentralized file storage network based on the InterPlanetary File System (IPFS), a peer-to-peer file storage and sharing protocol released by Protocol Labs in 2015. In this article, we will try to clarify what exactly Filecoin is and how does Filecoin mining work. Soon after the much-anticipated launch, Filecoin miners started to offer their file storage space to other users and the price of FIL skyrocketed due to high speculation, but quickly readjusted and ended up settling at around $30 per token. How storage mining works on the Filecoin networkįollowing more than 3 years of development, the decentralized file storage network finally saw the light of day on October 15.