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
. 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.