Understanding The Basics: What Is Filecoin (fil) And How Does It Work?

Filecoin is a decentralized storage network and cryptocurrency created by Protocol Labs that aims to disrupt the traditional cloud storage industry. It allows anyone with spare computing resources to rent out their storage space in exchange for FIL tokens. This provides a more efficient and cost-effective way of storing and retrieving data while maintaining security and privacy. The main issue with traditional data storage systems is centralization, which poses a high risk of a single point failure, lack of privacy, and high costs.