Updated: May 1, 2021
Filecoin is not a buzzword. Let's begin with that. Filecoin is the implementation of a decentralized cloud computing framework, establishing greater data integrity and privacy for your most important information. Filecoin is less prone to attacks due to its decentralized storage networks, proof-of-spacetime and pro-rep algorithms, and smart contracts. Last but not least, Filecoin sits on its own proof-of-work blockchain, utilizing the SHA-256 hash algorithm with a half-life of 6 years and a hard cap at 2 billion coins. To put that in perspective, Bitcoin also has a hard-cap and it utilizes the SHA-256 encryption algorithm.
What happens if there is a breach?
In the rare case that a breach occurs, you have nothing to worry about. Your files are partially distributed within the decentralized network. Hackers (formal name: crackers), would only be able to retrieve a file that would be illegible.
In my view, I want to hold Filecoin for the longterm. It may face some headwinds once and a while, but in the next 5-10 years, I think the value will show for itself. Not many people understand cryptocurrency in general, let alone Filecoin. This one will be hard to ignore- it's only a matter of time before institutions get their money into this.
Why should I consider investing in Filecoin?
Filecoin is a direct competitor with Amazon Web Services, Microsoft Azure, and Google Cloud Platform. These companies together are worth hundreds of BILLIONS of dollars. Who knows- these companies may adopt Filecoin's blockchain and work to improve its pioneering user interface. There is definitely a lot of potential here.
I am not a financial advisor. The content on this post does not represent financial advice.