Is the Current Filecoin Hype Warranted?

CryptoMode Filecoin FIL

There is a lot of excitement surrounding the Filecoin project. For a venture raising funds over the course of three years, its technology should be impressive. According to the current dashboard statistics, there are a few reasons why this approach may succeed. 

What is Filecoin Again?

People who have been around in the cryptocurrency space for a while may remember Filecoin. An ambitious project aiming to bring decentralized storage to the masses. It is not a unique business model either. Several other file storage-oriented projects have launched since, yet none of them seems to appeal to the masses just yet. 

Through Filecoin’s network, the storage and retrieval of data takes place through blockchain technology. It is designed to offer much cheaper alternatives to the likes of Amazon, for example. Data to be stored can include video, audio, websites, personal files, public datasets, and so forth. Building a decentralized cloud is challenging and ambitious, but not entirely impossible. 

With the help of IPFS technology, Filecoin becomes more efficient and secure. This is also what allows for competitive pricing, and provable security. More importantly, this network can scale significantly. With its combination of diverse storage providers and developers, global data networks will be built over time. 

Filecoin Business Opportunities 

Below are the different business opportunities that Filecoin offers: 

  • Financial and Data Services 

Storing digital files or data on the Filecoin system is easy, allowing secure file sharing for finance and data services. Financial products have high demand that requires risk management, liquidity provision, and uncertainty reduction. In addition, the services that emerge around Filecoin participants ensure liquidity and reduce risk. Therefore, it gains access to robust FIL datasets to enable a secondary business opportunity for data services.  

  • Client-Miner Matching Opportunities 

The Filecoin marketplace has two sides, clients that seek storage and miners that provide storage. The network experiences the storage provider growth with notaries bringing more clients to the platform. This is done by providing reliable services for secure data storage.  

More applications will emerge to improve the user experience of client-miner matching with the growth of miners and storage seekers. Filecoin will have built-in deal matching platforms, allowing storage providers to find those who need the service. Storage seekers will be keener in checking miners using applications to collect and index reputations. 

  • Co-location Of Storage And Compute 

The Filecoin network has many compute resources alongside storage services. Hence, the Filecoin community has started building business opportunities. These prospects may include miners providing GPUs and SNARKs as a service. Another business use may include analytics, enabling Filecoin’s compute resources to gather and process the storage activities. 

Current Statistics by FILStats

Whereas most people currently show an interest in the FIL token price, there are other aspects to take into account as well. After all, this project is designed for file storage and offering competitive rates. As such, looking at the current rates one would pay can give an indication of how viable the concept is.

As FILStats shows, it costs $0.137 to store 1 gigabyte of data for 1 full year. This may seem like a lot, but it is still 50.51% cheaper compared to using Amazon’s S3 Standard solution.  Competing on this front will be crucial to anyone looking to store their data accordingly. 

Source: FILStats

It is true that anyone can effectively help store the data and decentralize the network even further. Users will be paid in FIL for sharing their bandwidth. To date, 4.485 FIL has been paid to store over 2.4 terabytes of data. This clearly shows the Filecoin concept works as advertised. 

On average, parties who are interested in storing data on the Filecoin ecosystem can do so with ease. So far, the average “deal size” to come to an agreement is 1.015 gigabyte. Not the most impressive numbers, but it is more than viable given the current circumstances. Whether this number will increase in the future, is a different question. 

For those who obtain the FIL token, it is currently possible to store nearly 566 gigabyte per token. This makes decentralized cloud storage very appealing, albeit it is a matter of getting more people interested in this concept. Competing on price is one thing, but beating Amazon in branding ad overall reach, is a different matter altogether. 

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