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Since Filecoin is a decentralized storage network that acts as a place for participants to rent out hard drive storage space, Filecoin's mining process is slightly different from traditional cryptocurrency mining techniques. In Filecoin mining, miners do not create new coins, but instead provide storage space and methods to easily access stored data. Depending on the exact function of the miners, they are divided into three different types:

1. Storage miners

They are the most critical part of the network because miner servers are the ones that provide storage space for different clients on the network. They are incentivized using Filecoin or FIL and require the use of cryptographic computational code to verify each storage transaction. Unlike traditional coin mining, the incentivized increase in Filecoin mining is based on the amount of storage provided to clients, not the ability of the hardware to crack cryptographic hashes.

2. Retrieve miners

Once data is stored, clients need to be provided with an easy way for miners to access the data, unlike the way data is stored for them. This data retrieval is a task performed by retrieval miners who have been incentivized to retrieve data based on their bandwidth and initial response time to clients. If miners cannot provide a fast data retrieval pipeline, their motivation may be greatly reduced.

3. Repair miners

This type of miner will be added to the network to increase the speed of transactions and rewards, while properly maintaining the data stored and the fast pipelines needed to retrieve it. This idea, while good, has not yet been implemented by Filecoin. It is not fully understood how these miners will be paid, or more appropriately, what incentives they will receive.

After placing the storage space on the network for customers to see, they can choose to work with specific miners. Once a client chooses a miner to rent storage space, they enter into an agreement, called a transaction in Filecoin terminology. Clients need to deposit funds into wallets for the entire duration of the transaction, and miners should accept the terms of the transaction before the transaction can be published on the network.

After the transaction is published, the client sends the prepared data to the miner for storage. Once the miner receives this data, it is put into a sector and then blocked. Once this process is complete, the miner server will send a proof to the network to add to the chain for confirmation. After confirmation, the customer can be sure that the data has been stored, which marks the beginning of the transaction.

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