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What is Filecoin (FIL)?

What is Filecoin (FIL)?

Filecoin is a decentralized file storing network that rewards users who store files. Those who keep files are referred to as storage miners. Users pay for their files to be stored, while storage miners are rewarded for their work.

Its distributed nature allows for peer-to-peer file storage and retrieval design. The platform has a native virtual currency called FIL, which is used to reward miners.

The network is inspired by Web3, an advanced software development architecture that eliminates centralization. Filecoin can provide file storage services to other decentralized platforms as well. Furthermore, the network projects a way to enable transaction interaction with other blockchain platforms, promoting interoperability.


What is Filecoin Token $FIL?

Filecoin token $FIL is the platform’s native virtual currency which is used to reward miners. Note that the Filecoin mainnet has not launched yet, and FIL tokens are not in circulation. However, as seen below, a few exchanges are already trading FIL on an IOU basis. This means that users will only receive FIL tokens in the future. However, this has not deterred enthusiasts, with FIL having more than USD 100 million in trading volume every 24 hours and prices seemingly on an upward trajectory.

Upon the Filecoin mainnet launch (see below), Huobi Global will launch $FIL and open trading, deposits, and withdrawals. Other exchanges have also rushed to list one of the most talked-about Chinese projects since 2017, such as Binance and FTX exchanges.

China is all-in on Filecoin - Miners are seriously considering Filecoin

Although the protocol does not require specialized mining devices for access, China is eyeing developing Filecoin mining hardware. Furthermore, Chinese investors are already speculating on FIL’s price. The Chinese have already been into Filecoin since as early as 2018, and with the mainnet launch being potentially weeks away, the hype is only getting stronger.

For example, when Protocol Labs announced an incentive program in early June 2020, Chinese firms started marketing cloud mining services that users can contract and use to provide storage to Filecoin users.

With the popularity of cryptocurrency mining in China, it is not surprising that these firms attracted a minimum of $500,000 in sales in the first few days. In addition, data from blockchain explorers revealed that the leading storage miners on Filecoin are located in China. Cumulatively, these miners account for over 80 percent of the network’s testnet storage mining power at roughly 15 petabytes (15,000 terabytes).

However, the tremendous uptake of storage mining in Asian countries can be attributed to the country’s love for Bitcoin and other cryptocurrency mining activities. Although Bitcoin trading is banned in China, most of Bitcoin’s mining power is still concentrated at approximately 65 percent.

Also, even before Filecoin went live, mining hardware companies were already exciting their products in anticipation. Andy Tian, the co-founder of 1475, a hardware manufacturing company, thinks that China’s Filecoin mining hype is partly driven by the fact that the idea behind the mining is simpler to retail miners than mining BTC where ASICs are used.

The anticipation in China is so high that more than $15 million worth of Filecoin mining software and hardware has been stashed by mining pools waiting for investors and self-mining. Other large BTC mining companies like RRMine reportedly sold $15 million in cloud computing contracts “within minutes.” Romine is also accumulating FIL mining hardware.

Unfortunately, it’s not the amount of free space you provide to the network that matters more, but the amount of sealed data. While accessing the FIL protocol does not require massive processing power, sealing data on a hard drive does.

The sealing can be done by harnessing power from a CPU or GPU hardware. However, throwing a piece of specialized equipment in the mix makes it faster, allowing miners to seal more data in a day. In return, they also get more rewards.

Chinese Companies are also speculating on Filecoin

But it does not stop at mining. Close to 50 cryptocurrency exchanges in the Southeastern Asian country, including Biki Exchange and MXC Exchange, have FIL futures served with Tether (USDT) on their menu. Note, however, that this is only an IOU, as the token hasn’t been released yet.

Cryptocurrency data aggregator platforms like CoinMarketCap, Feixiaohao, recorded roughly $100 million in trading volume in 24 hours. However, the price of Filecoin futures has been fluctuating from $11 to $28 to $18 within days.

Some firms dealing in cloud contracts, e.g., Mars Finance, project a 300 percent annual return for FIL miners without providing the amount of FIL tokens each terabyte of contracted space can bring.

Focus on the investment opportunity in storage mining in 2021

Filecoin has become the world's most secure and reliable storage network through a decentralized architecture and encryption algorithm. The project has been invested and supported by many top capital institutions in the early stage. Unlike coin traders, mining investors do not have to worry about suffering a loss from selling their coins cheaply amidst drastic market fluctuations.

The OXBTC team bets on the investment potential of storage mining. As one of the earliest platforms in the world that offer storage mining investment services, OXBTC currently renders the Filecoin (FIL) mining investment service and is going to introduce the Swarm (BZZ) mining service.

There are three promotional events for Filecoin Storage Mining on OXBTC for everyone to get started.

A Trusted Real Cloud Mining Provider – OXBTC Mining

Cloud mining has many advantages and disadvantages. For one, the user must trust the cloud provider in a space ripe with scams and frauds. The user is not in control of the equipment or how it is used. For those who are unfamiliar with technology and don't like trouble, cloud mining is a perfect solution.

OXBTC also developed an APP for customers ‘convenience. On the OXBTC Mining APP, you only need to perform simple operations and online monitoring of mining behaviors and revenue.

The technical problems of mining and the maintenance of mining machines will be completed in the background of OXBTC, which owns a variety of mining rigs and global layout of mining farms -- OXBTC ensures the stable and uninterrupted operation of the machines in all aspects of its global layout of mining farms for OXBTC has reached in-depth cooperation with many top mining rigs manufactures around the world and boasts a competitive supply chain.

If you are interested in cloud mining or bitcoin mining, you can go visit oxbtc.com or download OXBTC mining APP from Google Play to learn more.