Filecoin

Filecoin (FIL) is the native token of an open-source decentralised storage network developed by Protocol Labs. The network connects users who need data storage with operators who provide hard drive capacity, settling agreements through onchain storage deals and verifying that data remains intact over time.

Filecoin uses two specialised cryptographic proofs to secure the network. Proof-of-replication confirms that a storage provider has stored a unique copy of a client's data. Proof-of-spacetime requires providers to repeatedly prove that they continue to hold the data over the agreed period. Together these proofs create economic guarantees that storage commitments are honoured without trusting any single operator.

FIL is used to pay for storage and retrieval, collateralise providers and reward block production. The network connects to the InterPlanetary File System (IPFS), a content-addressed protocol that complements Filecoin by handling data discovery and retrieval. Within the broader landscape, Filecoin is part of the decentralised storage segment, where token incentives coordinate distributed hardware as an alternative to centralised cloud storage providers.

Decentralised storage networks use token incentives to coordinate distributed hard drive capacity, providing an alternative to centralised cloud storage. Filecoin sits within this category, which forms part of the broader decentralised physical infrastructure segment alongside compute and connectivity networks. Readers tracking how this category develops can explore broader trends across DePIN.