There are thousands upon thousands of cryptocurrencies and more are being created every day. With this volume of altcoins (i.e., cryptocurrencies other than Bitcoin), it is normal for most to be limited to small business projects without too high a market capitalization, meaning that either there are very few units or the price is very low.
FIL is the token of the Filecoin network that is to become the reference blockchain storage service
But sometimes a newbie cryptocurrency walks through the front door and quickly rises to the top. Such is the case with FIL, the token of the Filecoin network, which currently ranks 14th in market capitalization (although it did a brief foray into the top 10 on April 1st) and their value has risen by more than 300% in the last month.
But what makes FIL different from other cryptocurrencies that have grown so abruptly? Mainly its dual role: FIL is not only a common cryptocurrency, but part of a cloud storage system based on the Filecoin blockchain network.
In this way, FIL is supposed to be the incentive for a storage service (like Drive or Dropbox), but one that is completely decentralized. Basically, the process is as follows: The users of the Filecoin network They pay FIL to keep their content safe. The more you pay, the more redundancy and security your files have.
On the other hand, the platform’s miners offer file hosting in exchange for FIL. In this way, offering a large amount of storage space and additional security levels is rewarded and therefore encouraged by other users.
There is a second category of miners who do not offer direct storage but provide secondary support to the network. For example, offer caching or computing power to accelerate data transfer.
The landscape that Filecoin is starting to draw is portrayed as extremely competitive. Network users compete for the best services in exchange for the platform’s own token. which has a direct impact on the price.
Without a doubt, keeping Filecoin under control is not a bad idea, be it as an investment or to directly use the storage service on offer. FIL is on the main stock exchanges, can buy on sites like Binance and Kraken.