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With the continuous development of computer technology, more and more data are generated. According to statistics, the newly generated data grows exponentially every year. And with the continuous popularization of IoT technology and 5G technology in the future, the speed of data production will also accelerate. Therefore, data storage and transmission are likely to become a bottleneck restricting technological development. The Filecoin technical solution is to solve the problem of data storage and transmission.

1. Filecoin transactions

In 2017, the Filecoin project raised 186 million yuan in one hour, and finally raised a total of 257 million yuan, which is one of the largest financings in the history of blockchain. Filecoin has also received investment from many well-known institutions such as Sequoia Capital and Winklevoss Capital.

Filecoin aims to provide two P2P network-based trading markets - data storage market and data retrieval market to meet the needs of different users for data storage and retrieval. In the storage market, users with storage resources can contribute their own storage resources to provide storage services for users with storage needs. Both parties use Filecoin tokens for transaction settlement. In the retrieval market, users with bandwidth resources can provide data retrieval and download services for the Filecoin market. Both parties to the transaction will use Filecoin tokens for transaction settlement.
Filecoin will encourage more people to use idle machine resources through the Token Economy, provide efficient data storage and retrieval services through a completely peer-to-peer network architecture, and reduce data storage and usage costs. This is a decentralized architecture, which means that data is not controlled by a centralized organization, so data privacy can be better protected.

2. Filecoin token distribution

Filecoin's token distribution strategy is also worth reviewing. Of all tokens, 70% will be allocated to Filecoin network mining rewards to maintain the operation and stability of the system; 15% will be allocated to Filecoin's development team, Protocol Labs. This 15% will be mainly used for project research and development, marketing, etc. 10% will be allocated to investors, with lock-up periods ranging from 6 months to 3 years, to maintain partnerships and business development. The last 5% will be allocated to the FIL Foundation. The development team has a 6-year lock-in period to ensure long-term network management, public work, community building, etc.

To sum up, the number of tokens allocated to miner accounts is overwhelming, and the tokens of the team and foundation have a 6-year lock-up period. The distribution of tokens fully considers the incentives for miners and users. These assignments will greatly increase the user's confidence in the system.

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