15 Insights on Filecoin Funding
Aug 14, 2017 Posted / 5314 Views
Filecoin is a data storage network backed by an application token.The Filecoin DSN is a decentralized storage network that is auditable, publicly verifiable and designed on incentives. Clients pay a network of miners for data storage and retrieval, miners offer disk space and bandwidth in exchange of payments. Miners receive their payments only if the network can audit that their service was correctly provided.
Filecoin is a blockchain based data storage network which is supported by an application token,with its own built-in cryptocurrency. The aim is that users can offer any of their excess storage capacity for sale, and receive payment or rewards in the form of Filecoins.
The San Francisco based startup protocol lab had raised $52 Million recently, in its pre sale, ahead of its ICO launch. The startup pre sale supporters were Union Square Ventures and Sequoia Capital. Its further sale comprised of accrediated investors who could participate via a platform called CoinList., which was a created by protocol labs and AngelList
The platforms stated its aim is to serve as a platform for regulation compliant ICOs, including and issuing a framework called the Simple Agreement for Future Tokens, or SAFT.
Filecoin raised around $200 millions, in it sale. The sale which started 1 PM, lasted only for an hour and it was only for their accrediated investors. The amazing thing is that it raised this much that too inspite of their technical issues. This was a remarkable participation and interest which came in response.
The Filecoin DSN (Decentralized storage networks) handle storage and retrieval requests respectively via two verifiable markets that is the Storage Market and the Retrieval Market. Clients and miners set the prices for the services requested and offered and submit their orders to the markets. DSNs average storage is offered by multiple independent storage providers and self coordinates to provide data storage and data retrieval to their clients.
The markets are operated by the Filecoin network which employs Proof of Spacetime and Proof of Replication to guarantee that miners have correctly stored the data they committed to store.
Data Integrity, Retrievability, publicly verifiable, auditable, incentive-compatible, Collision-resistant hashing are some of the properties used an included in their DSN scheme.
The Filecoin protocol employs Proof of Spacetime to audit the storage offered by miners. To use PoSt in Filecoin, they modify their scheme to be non-interactive since there is no designated verifier, and they want any member of the network to be able to verify. Since their verifier runs in the public-coin model, they can extract randomness from the blockchain to issue challenges.
Storage Miners provide data storage to the network. Storage Miners participate in Filecoin by offering their disk space and serving Put requests. To become Storage Miners, users must commit to their storage by depositing a secured proportional to it. They respond to put requests by committing to store the client’s data for a specific period of time. Storage Miners generate Proofs of Spacetime and submit them to the blockchain to prove to the Network that they are storing the data through time. In the case of invalid proofs or missing proofs, storage Miners are penalized. Storage Miners are also eligible to mine new blocks, and in doing so they hence receive the mining reward for creating a block and transaction fees for the transactions included in the block.
Retrieval Miners provide data retrieval to the Network. It is not necessary for them to pledge, commit to store data, or provide proofs of storage. It is natural for Storage Miners to also participate as Retrieval Miners. They can obtain pieces directly from clients, or from the Retrieval Market.
The DSN protocol can be used on any ledger that lets you for the verification of filecoin’s proofs, which is a robust distributed ledger.
Put is the first step in which the Client stores data in Filecoin and Get is the second step in which the Client retrieves data from Filecoin.
Mining Cycle (for Storage Miners) Pledge Storage is the first step in which the Miners pledge to provide storage to the Network, Receive Orders is the second step in which the Storage Miners get storage requests from the Storage Market. Seal is the third step in which the Miners prepare the pieces for future proofs. Prove is the fourth step in which the Storage Miners prove they are storing the committed pieces. While for retreival miners, it is upto receive orders from data markets, and send orders to clients.
Filecoin might be overestimating its abilities or underestimating the cost of actually implementing the system in question. The obstacles for investment can make it a non-starter for many cryptominded investors, limiting the actual interest in the ICO. A reduction in funds raised could cause some problems, but, protocol also has some good connections.
It can be concluded that Filecoin is probably going to do alright. There is a schedule for investors, that means a long term analysis will be there in order the things have gotten further along. We can believe that investing FIL tokens can be a good long term strategy.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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