Filecoin (Token: FIL) is an blockchain based open-source cloud storage marketplace, protocol, and incentive layer. The objective is to ensure file storage is permanent and distributed across the web. Customers wanting to access storage will have to pay for storage in Filecoin. This is compared to centralised cloud storage solutions such as Amazon Web Services, Google Cloud, or Dropbox, where data is stored in servers owned by these private corporations.
Filecoin has been rallying recently and is currently up over 87% in the last seven days alone.
Despite the impressive returns, Filecoin prices remain astronomically below last years levels.
As of 31 July 2022, Filecoin's market capitalisation was $2.5bn.
Price per FIL token on 01 April 2021: $237 a token
Price per FIL token at the time of writing: $10 a token
The digital assets market has been gaining renewed confidence from investors, with the industry's market cap rising $280bn in July alone. This followed a painful sell-off that had quickly scared many players out of the market. The market was also turbulent after the collapse of the Terra $1 stable coin on 05 May, which was build as an 'algorithmic stable coin'. Three months on, other stablecoins such as the USDC have remained solid during one of the most testing time for the blockchain industry. This is likely because the USDC is governed by the Centre Consortium, which ensures true 1-to-1 backing. This means that for every USDC created, $1 of the USD is held in reserve in the form of US Dollars and other cash equivalents.
The USDC is currently backed by $54bn.
Filecoin is already playing a part in becoming a green blockchain.
Since Filecoin can measure the electricity use of Filecoin nodes, it's possible to match this use to renewable energy. In a partnership with Energy Web Zero to match Filecoin energy use with renewable energy certificates (RECs). Renewables purchases are recorded in Filrep, a reputation system that stores data on the Filecoin network.
Another step Filecoin is taking towards building greener solutions is joining the Crypto Climate Accord. Modelled after the Paris Climate Accord, the CCA is a joint effort between stakeholders in the crypto and blockchain space that have come together to reduce the technology’s carbon footprint.
The agreement hopes to decarbonize the crypto space by 2040 and ensure the industry is net-zero for carbon emissions by 2030.