Anyone who invested in Filecoin (FIL) yesterday could look forward to a decent price gain today. The price of the cryptocurrency shot up by over 25 percent overnight. Many are now wondering what is behind the sudden price rally.
Filecoin wants to create a decentralized, censorship-resistant storage network that will last forever. The idea behind the idea is the Protocol Labs founder Juan Benet, who first drew attention to himself with the development of the InterPlanetary Filey System (IPFS) in the crypto space. IPFS is an open source protocol for creating peer-to-peer networks for storing data. Filecoin uses this technology and is one of the largest Initial Coin Offerings (ICO) in crypto history. In 2017, the Protocol Labs project raised over $ 200 million from investors.
Today Filecoin offers a cloud storage service that is similar to that of Dopbox and Co. There is one significant difference, however. At Filecoin, users can also offer storage space and be rewarded with FIL for this.
Despite initial difficulties, FIL has now developed into a gigantic network. According to Forbes, the Filecoin network currently has more than 2.5 billion gigabytes of storage capacity – enough space to store 725 million high-resolution 1080P movie files.
Filecoin enables NFT data to be saved
Just a few weeks ago, BTC-ECHO reported that Protocol Labs is working on a new storage solution that explicitly targets the boom sector of non-fungible tokens (NFT). Now the time has come and the NFT.Storage project is officially live.
With NFTs based on a decentralized network such as Ethereum, the NFTs themselves are stored in a decentralized network. But the underlying data of the NFT is often located on central servers.
With the help of NFT.Storage this problem should be solved. The metadata of an NFT can be stored securely and decentrally on the Filecoin network with NFT.Storage. This is intended to make data relating to individual NFTs just as transferable as the NFT itself. This could play a relevant role in the future, particularly with NFT license rights or other conditions.
NFT.Storage therefore fills a void for NFT developers looking for a “best practice” method to securely store their NFT data. The NFT storage solution from Filecoin is thus assuming a pioneering role in the crypto space. Some projects such as Palm, VideoCoin and several NFT marketplaces already rely on the Filecoin network to store important data.
Filecoin renewal seems to be attracting a lot of attention right now and is also gaining favor with investors. In the last 24 hours alone, Filecoin has grown by over 25 percent. At the time of going to press, FIL is trading at just under $ 90.