Filecoin is a decentralized storage system that aims to “store humanity’s most important information.” It is an open-source, public cryptocurrency and digital payment system intended to be a blockchain-based cooperative digital storage and data retrieval method. This system is designed to turn cloud storage into an algorithmic market, where data is stored on a peer-to-peer network rather than centralized data centers.

Filecoin's network is built on the InterPlanetary File System (IPFS), which allows users to not only receive but also host and store data. The unique aspect of Filecoin is that it offers users the opportunity to earn the Filecoin cryptocurrency (FIL) by renting out their storage.

The Filecoin protocol runs on a blockchain that records transactions made with the Filecoin token. The network is secured by proof-of-replication and proof-of-spacetime algorithms, ensuring that the data is accurately stored and remains available over time.

In March 2023，Filecoin launched the EVM-compatible Filecoin Virtual Machine (FVM), aiming to bring smart contract programmability to the Filecoin network.

Filecoin has made significant strides in 2024, focusing on enhancing decentralized storage and smart contract functionality through its Filecoin Virtual Machine (FVM). The network is being increasingly used for large-scale data storage, particularly in AI, where it offers scalable solutions for massive datasets. Filecoin’s proof mechanisms ensure data integrity, making it a trusted option for industries such as healthcare and media. The integration of AI tools and decentralized computing further solidifies its role in the data economy.

In its ongoing expansion, Filecoin is focusing on usability, enterprise adoption, and high-profile integrations with Web3 and emerging blockchain technologies. This includes building more real-time data verification tools and collaborating with decentralized physical infrastructure networks (DePIN). By doing so, Filecoin aims to become the default decentralized storage solution for AI, IoT, and large-scale data applications.

Above are only for introduction, not intended as investment advice.