What is Filecoin?

Filecoin is a decentralized storage network that utilizes blockchain technology to enable users to store and retrieve data from a distributed network of computers.

It is an open-source project that allows anyone to participate in the network and earn rewards for providing storage services. The Filecoin protocol is built on top of the InterPlanetary File System (IPFS), which is a peer-to-peer file sharing protocol. The Filecoin protocol incentivizes users to store data on the network by rewarding them with tokens, called FIL, for providing storage services.

The tokens can then be used to purchase additional storage space or traded on exchanges for other cryptocurrencies. The Filecoin network also includes a marketplace where users can buy and sell storage space in exchange for FIL tokens. This allows users to access more storage space than they would otherwise have access to, as well as providing an additional source of income for those who are willing to provide their own storage services.

In addition, the Filecoin protocol also provides a way for developers to build applications on top of the network, allowing them to create new products and services that utilize the distributed storage capabilities of the network. This opens up many possibilities for developers who want to create applications that make use of distributed storage networks such as Filecoin.