Filecoin

Filecoin is a decentralized network that aims to turn unused disk capacity around the world into an open storage market. It was designed by Protocol Labs as a complement to IPFS, the file system that works on the principle of content addressing, and its mainnet launched in 2020. FIL is not a token tied to another chain but the native coin of Filecoin's own blockchain.

Clients who want to store data make deals with storage providers and pay for the service in FIL. Providers have to show at regular intervals, through cryptographic proofs called proof of replication and proof of spacetime, that they are genuinely and continuously holding the data; if they fail to meet their commitments, a penalty is deducted from the FIL collateral they have locked. Providers that take part in block production are rewarded with newly minted FIL. With the addition of the Filecoin Virtual Machine, the network became able to run smart contracts, so applications that automate storage deals can now be built.

The FIL price may be shaped by how quickly storage demand turns into actual usage, providers' collateral needs, the release of newly minted coins into circulation and competition with centralized cloud services. The value shown on the Filecoin page on Lzzo.com comes from the FIL/USDT pair on Binance and is converted into US dollars using Coinbase Exchange's USDT/USD rate; the price chart follows this dollar-based series.