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Filecoin: The Airbnb for data storage?

Today’s issue of Moolah is dedicated to Filecoin, because it absolutely consumed my attention this week.
Having decided that it was time to take a deeper look into Web 3.0 projects (the so-called “next generation of the Web”), I stumbled upon Filecoin and what it aims to do. Simply put, it aims to be the Airbnb for data storage. Let’s say you have a hard drive with excess space. You can auction that excess space on the Filecoin network, receive a bidder, and store whatever data the bidder gives you in exchange for Filecoin.
The inspiration for Filecoin was Bitcoin—obviously—but instead of a useless proof-of-work computation that wastes a lot of electricity, Filecoin utilizes two unique proofs to satisfy its blockchain: proof-of-replication and proof-of-spacetime. I’m not going to bore you with the details, but what I can tell you is that Filecoin looks promising. It’s still early days, but Filecoin and its sister project—IPFS—just might be the data storage backbone for blockchains like Ethereum. It would be counterintuitive for decentralized applications to use centralized cloud storage like Amazon Web Services. Not only that, but Filecoin might actually be cheaper, too (see “Why Amazon’s Margin is Filecoin’s Opportunity” below).
Here’s the TL;DR: I bought some Filecoin. This is not investment advice, so do your own research. But that’s how critical I believe Filecoin will be to the decentralized web. LFG Filecoin.

Joey Krug, the Co-Chief Investment Officer at Pantera Capital, wrote this article in 2017. The prices of storage that he mentions are probably dated, but the main idea of the article is not. Blockchain applications are unique because they use game theory to incentivize people towards certain behaviors. That’s part of the idea behind Bitcoin: nobody wants to buy a warehouse full of ASICs and run useless proof-of-work computations, but the incentives are really, really high (like $40,000+ high). So there’s one thing I disagree with Joey on in his article: it’s not software eating software, it’s cryptoeconomics eating software. Carefully designed incentives can be a powerful thing.
Juan Benet is the founder and CEO of Protocol Labs, the company behind IPFS and Filecoin. An immigrant from Mexico, Juan graduated with a Computer Science degree from Stanford. He would later start Protocol Labs after realizing the power of incentives from studying Bitcoin. While this episode gets technical at times, I think the podcast hosts do a good job of pressing Juan for more details when necessary. This stuff is not easy to understand.
Rounding out this week’s discoveries is a 1 hour 30 minute speech from Juan on his long-term vision for Filecoin and IPFS. If you’re bored of all the technical details and just want to know how this guy thinks about stuff—like how Filecoin could help preserve humanity’s body of knowledge—this is your video.
NFT of the week
This week's Twitter thread
Connor Daly
Want to build in crypto but don't know where to get started?

Over the next few weeks, I'm tweeting a crash course on how to break into smart contract development. It's the most in-demand skill in crypto. But almost no one knows how to do it.

First, what are smart contracts?
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Phil Hendricks
Phil Hendricks @PhilLHendricks

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