With the rising popularity of cloud computing platforms, the cryptocurrency that has become the topic of discussion recently is Filecoin (FIL). Thanks to the ongoing interest of top Chinese firms, Filecoin raised over 250% just in March 2021.
Filecoin is a unique decentralized storage system with an aim to 'store humanity's most important information securely.' With its recent developments and high institutional interest, crypto analysts and investors predict that Filecoin is going to explode in 2023.
Looking At 2023: Is Filecoin Set For A Massive Year?
The purported goal of Filecoin is to reduce the dependency of cloud storage in centralized systems. With substantial institutional support, FIL has seen a tremendous rally in March 2021. It had a price of $40.7 at the beginning of March and surged up, hitting an all-time high of $237.24 on 1st April 2021. It has seen a whopping surge of 449% in just over a month.
Let's dig a bit deeper into why this cryptocurrency will become the facet of cloud storage in the future. What are some of the projects and major institutional support that will drive Filecoin to explode by the end of this year?
#1: Its Unstoppable Rally
Filecoin had a tremendous ICO launch in 2017. Breaking all the barriers, it raised over $250 million just during its ICO period. There has been a strong institutional interest in FIL since its inception. Some of the significant investors of Filecoin were Sequoia Capital, tech legends Andreessen Horowitz, Union Square Ventures, and Winklevoss Capital Management, among others.
2021 is seen as a bullish year for Filecoin with the launch of its much-awaited testnet and mainnet products. The coin has gained much popularity and experienced a surge in price just a few days after Chinese investments.
As of writing, Filecoin sits at $28.62 with a market cap of $4 billion. Almost 147.79 million coins are in circulation currently. Due to its high speed, low cost, and uncompromised security, crypto experts predict that it is going to explode exponentially.
#2: Unique Features That Make Filecoin The Future Of Cloud Storage
The significant feature that makes FIL a unique cryptocurrency is its open protocol, which aims to store data in a decentralized manner. It is a cheaper, faster, and highly secure alternative to centralized cloud data storage peers like Amazon AWS, Google Cloud, and Microsoft Azure.
The uniqueness of FIL lies in the way it uses its decentralized nature. Other centralized cloud storage companies hold the power of a particular data, acting as a gatekeeper. But, Filecoin gives the power back to users along with protecting the integrity of the data. It also makes it easy to retrieve and hard to censor.
This decentralized storage system thus allows people to be the custodians of their data. Additionally, the Filecoin network is a storage pool that permits anyone to rent out their hard drive storage space in exchange for rewards.
#3: Filecoin's Consensus Mechanism
Despite being a decentralized storage network, Filecoin uses a Proof-of-Replication (PoRep) and Proof-of-Spacetime (PoSt) mechanism instead of Proof-of-Stake. PoRep implies that if miners prove that they have received the cryptographically stored information from the client, they will be rewarded in Filecoin. While PoSt ensures that they store the data in the client's contract for the mentioned period.
#4: Decentralized Environment For Independent Providers
As mentioned, a unique property of Filecoin is that its miners receive FIL coins in exchange for providing computer storage. There is no need for running complex calculations to verify transactions here. Any individual or organization that has a spare disk on an internet-connected computer is considered a miner.
Therefore, FIL promotes an open market for file storage which is easy and relevant. Users can also choose a miner who offers the best cost, speed, and redundancy that suits their demands.
The Filecoin protocol creates a decentralized environment for independent providers by removing the need for a separate application programming interface (API). It reduces barriers to enter the network making it applicable to a larger audience. These are some of the driving factors for Filecoin tremendous growth.
Recent Advancements And Institutional Support
Investments From Xinyuan Technology Co
An investment that fueled Filecoin's price in the market is from the giant computer hardware company Xinyuan Technology Co. They invested around 580 million yuan ($89 MILLION) in Filecoin miners, drawing more attention to the cryptocurrency. Despite this, several other Chinese organizations have been pumping the coin in platforms like WeChat, adding to its popularity and demand.
Greyscale's Filecoin Investment Trust
Another popular investment that will encourage Filecoin to explode in 2023 is the launch of a Filecoin investment trust by the cryptocurrency investment giant Grayscale. Grayscale Investments LLC is the prominent company behind the world's largest Bitcoin fund. The news of Grayscale's offering has skyrocketed FIL's value from $60 to $220 within two weeks.
The $1.3 Billion Worth Investment From The Tech Consortium IPFS
IPFS, The Interplanetary File System, is a leading infrastructure provider for the blockchain industry based in China. They've announced a big-budget investment in Filecoin to build a large industrial park focused on Filecoin mining. IPFS would spend around $1.3 Billion to construct this Filecoin mining facility in China.
This partnership has tremendously boosted FIL's value and price in the market. The team claims that it will become the largest IPFS and Filecoin distributed storage Industrial Park in China.
It aims to actively develop research and studies on distributed storage and blockchain technology. It also imparts offline education and other activities for industry knowledge of Filecoin. Despite this, the IPFS Union will also launch the Starpool cloud storage platform. It helps traditional industries to store large amounts of industry data on the Filecoin Network.
Filecoin Powering NFT Market With Videocoin
NFTs are changing the facet of creating and trading digital collectibles. Videocoin has announced to integrate its decentralized video processing network with the Filecoin platform. It aims to build the first platform uniquely designed for creating and trading video NFTs. With all this in place, Filecoin is affirming its strong position in the crypto space.
$10 Million From Block Dream Foundation
The Block Dream fund has recently announced its collaboration with Filecoin by providing a $10 million capital and resources to support the high-quality projects of the Filecoin ecosystem.
Dora, the Founder of Block Dream Fund, says, "We predict that the distributed storage market will explode in the coming years and want to invest our resources in companies building on Filecoin. We expect several unicorn startups to emerge from the Filecoin ecosystem."
Why Filecoin Is Going To Explode In 2023: The Bottom Line
The given factors and institutional investments are more than enough to affirm that Filecoin will become the overlord of the decentralized cloud storage industry. The cloud computing market is increasing and growing at a dizzying pace. Filecoin has successfully dominated a few established centralized networks in this space.
With its advancements and promising future projects in place, Filecoin might explode exponentially in 2023 and will re-create the future of the digital economy era.
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