Filecoin

Background and History

Filecoin was launched in October 2020 by Protocol Labs as a decentralized storage network designed to make data storage more secure, reliable, and cost-effective by utilizing unused storage capacity worldwide. The platform operates on a proof-of-spacetime consensus mechanism, which allows storage providers to earn FIL tokens by providing storage space and validating data integrity.

Since its launch, Filecoin has become the largest decentralized storage network, surpassing 2.5 exabytes of storage capacity in 2024. This milestone represents a significant achievement for the Web3 community, as Filecoin continues to advance its goal of creating a decentralized, open internet where data is stored securely and verifiably without reliance on centralized entities.

Key Features and Technologies

Decentralized Storage Network

Filecoin’s decentralized network is powered by a global community of storage providers, who offer their unused storage capacity to the network. The system uses a proof-of-spacetime consensus mechanism, ensuring that data is stored securely and that the integrity of stored data is continuously verified. This decentralized approach makes Filecoin more resilient and secure than traditional, centralized storage systems.

Filecoin Virtual Machine (FVM)

The Filecoin Virtual Machine (FVM) was introduced to enable smart contract functionality on the Filecoin network. FVM allows developers to build decentralized applications (dApps) directly on Filecoin, integrating storage solutions with compute and AI capabilities. Recent upgrades in 2024 have improved the FVM’s performance, enabling batch payments and more complex data operations, which has broadened the range of use cases for Filecoin in decentralized finance (DeFi), gaming, and beyond.

Basin: The First Data L2 Built on Filecoin

In 2024, Filecoin introduced Basin, a Layer 2 solution built to enhance decentralized data storage and management. Basin leverages Filecoin’s infrastructure to provide scalable and cost-effective data operations, aimed at improving performance, reducing costs, and enhancing security for developers and enterprises.

Usage and Applications

Filecoin’s use cases extend beyond simple storage solutions, encompassing applications in AI, Web3, and decentralized data services. For example, Filecoin’s integration with AI has proven instrumental in providing the large-scale, secure storage needed for training AI models. The network’s ability to store and retrieve data securely and verifiably makes it an essential infrastructure component for decentralized AI development.

In addition, Filecoin supports a wide array of Web3 projects and decentralized applications. The platform’s decentralized storage model is crucial for maintaining data integrity, supporting decentralized finance (DeFi) platforms, gaming, and other applications that require reliable and scalable storage solutions.

FIL Governance Token

Overview

FIL is the native cryptocurrency of the Filecoin network, used to pay for storage services, incentivize storage providers, and participate in the network’s governance. Storage providers earn FIL by offering storage space and ensuring the integrity of stored data through the proof-of-spacetime mechanism.

Tokenomics

By 2024, FIL’s value has seen stabilization as the network grows and real-world use cases become more prominent. FIL tokens are also used in the network’s governance, allowing stakeholders to vote on protocol upgrades and other important decisions.

Notable Events

Integration with Squid Router

In 2024, Filecoin integrated with Squid Router via the Axelar Network, enhancing cross-chain compatibility and enabling seamless swaps to and from Filecoin. This integration has improved the network’s efficiency, allowing for faster data transactions across multiple blockchains.

FIL-RetroPGF-1 Initiative

The FIL-RetroPGF-1 initiative, concluded in 2024, highlighted the contributions of various projects within the Filecoin ecosystem. This initiative supported projects like Glif Nodes RPC API service and Drand’s verifiable randomness, which are crucial for the continued innovation and development of the Filecoin network.

Consensus 2024 and AI Integration

At Consensus 2024, Filecoin showcased its role in the evolving AI landscape. The network’s decentralized storage solutions are becoming increasingly important for AI, providing the scalable and secure data infrastructure necessary for training AI models and ensuring data integrity.

Integrations

Filecoin has established itself as a key player in the decentralized storage space, integrating with numerous blockchains and decentralized applications (dApps) across the Web3 ecosystem. Below is a list of some of the most notable integrations that have enhanced the functionality and reach of Filecoin as of 2024:

Blockchain Integrations:

1. Ethereum: Filecoin integrates with Ethereum, allowing decentralized applications on Ethereum to utilize Filecoin’s decentralized storage solutions through the Filecoin Virtual Machine (FVM). This integration supports smart contracts and data storage, enabling seamless interaction between the two networks.

2. Solana: In 2024, Solana integrated with Filecoin to enhance access to its block history. This integration makes Solana’s historical data more accessible and secure by leveraging Filecoin’s decentralized storage capabilities, which is particularly beneficial for infrastructure providers and developers who require reliable data storage.

3. Axelar Network: Filecoin is integrated with the Axelar Network through the Squid Router, which facilitates cross-chain swaps between Filecoin and other blockchain assets. This integration helps expand Filecoin’s utility across multiple blockchain ecosystems.

4. Celer Network: Filecoin also integrates with Celer’s cBridge, allowing for cross-chain asset transfers without the need for upfront liquidity. This integration enables decentralized exchanges and other dApps to leverage Filecoin for secure and efficient storage while interacting with other blockchain networks.

5. SingularityNET: Filecoin partnered with SingularityNET in 2024 to support decentralized AI and DePIN (Decentralized Physical Infrastructure Networks) sectors. This integration focuses on data integrity and decentralized AI ethics, leveraging Filecoin’s storage capabilities to support AI-driven applications.

Decentralized Applications (dApps):

1. Lotus: Lotus is a vital part of the Filecoin ecosystem, offering critical services like the Lotus Dependencies and Glif Nodes RPC API service, which won the top spot in the FIL-RetroPGF-1 initiative. This dApp is integral to the functioning and maintenance of the Filecoin network.

2. Basin: Basin, the first Layer 2 solution built on Filecoin, enhances decentralized data storage and management. It provides scalable, efficient, and cost-effective data operations, making it easier for developers and enterprises to manage large datasets on the Filecoin network.

3. MetaMask: Filecoin integrates with MetaMask, a popular Ethereum wallet, enabling users to interact with Filecoin’s decentralized storage directly from their MetaMask wallets. This integration simplifies the process of storing and accessing data on Filecoin for MetaMask users.

4. Glif: Glif offers a suite of tools and services that interact with the Filecoin network, including wallet services, data storage, and developer tools. It plays a crucial role in expanding Filecoin’s ecosystem by providing accessible interfaces for both users and developers.

5. Trust Wallet: Trust Wallet, in collaboration with Biconomy, integrates Filecoin to enhance decentralized storage solutions within its ecosystem. This integration allows users to store and manage their data securely using Filecoin’s decentralized infrastructure.