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https://www.filminer.co/blog/overview-and-history-of-filecoin
1. Overview of Filecoin
Filecoin is a decentralized data storage network built by Protocol Labs that allows users to sell excess storage space on an open platform. It acts as an incentive and security layer for IPFS (Interplanetary File System), a peer-to-peer network for storing and sharing data files. Filecoin turns IPFS' storage system into an "algorithmic marketplace" where users pay storage providers in Filcoin's native token, FIL, to store and distribute data on the network.
2. History of Filecoin
Filecoin is looking to provide an alternative to traditional online storage providers and protocols. Its technology acts as an incentive layer for the peer-to-peer file transfer system IPFS (Interplanetary File System), which uses a hash-addressable content structure to store data instead of centralized servers and IP addresses. This is to reduce redundancy, increase permanence and improve efficiency.
Filecoin incentivizes IPFS by rewarding storage providers and retrievers for contributing resources to the system. The network also comes with built-in Ethereum integration, allowing developers to access data on the Ethereum blockchain and interact with its smart contracts.
Filecoin is developed by Protocol Labs, a development company founded by Juan Benet in 2014. Benet and staff built both Filecoin and IPFS, raising several rounds of seed equity to fund the process. In 2017, the team held a token sale to secure development funding for Filecoin, and the project raised around $205 million through one of the largest token offerings at the time.
Protocol Labs seeks to build a base layer for data infrastructure that can be used by both blockchain and traditional providers such as Amazon Web Services and Microsoft Azure. The project plans to do this by creating a marketplace where anyone with storage capacity can connect to the network to create an unused supply of storage in consumer hardware and in existing enterprise data centers. The Filecoin team believes this will lower storage prices, similar to how sharing economy companies like Airbnb have lowered short-term rental prices in a market traditionally dominated by large players with large capital needs.
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