File Coin is becoming a trending investment worldwide because of its increasing value and utility. However, we greatly advise not investing according to trends and doing your own research. In this post, we’ll share everything we know about File Coin to answer the question, “Is File Coin a good investment?“
What is File Coin?
File Coin is a peer-to-peer network with a focus on file storage. File Coins (FIL) is the network’s native cryptocurrency, which storage providers earn for storing user files and consistently reflect the file storage accuracy. Using open market prices for storing and retrieving files, providing users with storage on their computers creates an economy protected by blockchain technology.
File Coin Functionality
Storage is File Coin’s primary functionality, but it provides users, storage providers, and other parties the following features.
Network
File Coin uses a p2p network that the peers created by communicating and distributing information securely within secure channels. Doing this allows them to transfer data smoothly, discover new peers, and use secure swarms for effective high peer population participation.
Nodes
File Con nodes are peers who facilitate File Coin synching. The nodes broadcast messages to the File Coin network by proposing and facilitating deals with File Coin storage providers. These low-level tasks are responsible for validating messages per block and ensuring it’s updated for everyone using the network. They also run 24 hours daily.
Storage Providers
Storage providers are the primary movers of File Coin. They execute various deals and append new data to the blockchain every 30 seconds. Storage providers receive rewards for new additions, and these are well-deserved because File Coin storage provision services are a complex and technical task.
Deals
File Coin uses storage deals between users and storage providers. These deals depend on the file storage needed. Deals execute after both parties agree and the storage provider has received the data. Retrieval deals are client-retrieval provider agreements. Storage providers can be retrieval and storage providers who can execute these deals. Learn more about them here.
Gas Fees
Messaging and storage resources use computation and storage resources on the network. Gas fees cover the missing resources. File Coin uses the same ETH-style gas fees except for allocating a small number of fees “burned” or sent to an address to compensate the network for using the resources (using the Ethereum EIP1559 protocol).
Reasons to Use File Coin
If you’re unsure about using File Coin, here are some features to help you make an informed decision.
Open Source Code
File Coin uses built-in processes that check file history and verify their proper storage. All storage providers must post file maintenance updates every 24 hours. Users with storage deals can scan their respective blockchain for confirmation.
Competitive Prices
Supply and demand determine the price. There’s no corporate pricing involved because miners have to compete by improving their storage, reliability, and speed.
Single Protocol
File Coin allows users to store data on any storage provider with a singular protocol, similar to API functionality in most platforms. All features are available because of the single-protocol format.
No Lock-In
Traditional storage services lock-in users in deals ranging from a few months to years. With File Coin, storage providers can keep your files without any lock-in periods. Pay for flexible storage and retrieval deals as long as you need.
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