News Crypto and cryptocurrencies

Filecoin increases by 25% in a few hours

However, the problem of dissatisfied miners remains in the background

Among cryptocurrency that have managed to stand out in the last few days, a place of honor certainly belongs to Filecoin.
The native token for the peer-to-peer file storage network launched by Protocol Labs has in fact given birth to one growth in the order of 25% in a few hours. Which brings the total of the last week to almost 60% more.
A trend that allows it to enter the top 20 of the market capitalization ranking drawn up by CoinMarketCap. Currently it is in fact al 16 th, not very far from the 13th of Bitcoin Cash, which is on the decline.

Filecoin - Filecoin increases by 25% in a few hours

Filecoin: what is it about?

Filecoin has been the subject of great expectations since its inception. Enough to rake approximately $ 205 million during its Initial Coin Offering almost four years ago.
Its function, in fact, justifies the reputation that has gratified it throughout its existence. By using the FIL token, network members are able to pay miners for unused space on their computer in order to ensure that your digital files and data are securely stored on the blockchain. The data stored in this way, in turn, enjoy the protection guaranteed by encryption and can be distributed online in blocks which would otherwise be incomprehensible.

Protests by miners

The miners, however, gave birth to one resounding protest in the latter part of last year. When they have fork threatened, motivating everything with delays compared to the initial roadmap.
According to many, however, the real reason for the turmoil is to be found in the rewards system that was devised by Protocol Labs. Which, by his own admission, would lead to the cut of about 80% of the miners. Most of which operate within the China. Where, in fact, came the threats of a fork which, moreover, would be the second. A first bifurcation, in fact, has already been launched on Github, with the name of Filecoin Vision. An obvious reference to Bitcoin Satoshi Vision, that is, aimed at highlighting how the initial spirit of the project was very different from the path then taken by Protocol Labs.

The report caused quite a stir

To examine the question related to the rewards due to the miners was, who published a document in this regard in October 2020. Which specified better the problems that emerged, to which even the partial restyling of the project. It took the form of an early release of 25% of token rewards at the construction of a block on the blockchain.
A review, however, judged insufficient by the Chinese miners, as in order to participate in the Filecoin network it is necessary to have extremely expensive hardware. Each device, in fact, involves an expense equal to several tens of thousands of dollars. A level of expenditure which can only be addressed by having very specific guarantees. Which the system devised by Protocol Labs does not seem capable of doing.
The attitude of the miners, consequently, remains in the background, like a guest of stone, with which Filecoin must be ready to settle definitively, if it wants to express its full potential. The next few months will therefore be decisive in this regard.

Buying Cryptocurrencies? Exchange Binance Binance

Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

Leave a comment

Your email address will not be published.

Back to top button