Blog Insight

GLG Trend Report Excerpt: The Continuing Rise of Filecoin

There’s a lot of buzz about digital currencies right now. For the most part, the focus has been on the investment angle. But the technologies that underpin cryptocurrency have vast implications for the internet and, accordingly, the operations of brands and businesses. The latest GLG Trend Report: The Impact of Cryptocurrency explores the growing influence of digital currencies in an easy-to-understand way. Download the full report here. Or read this first excerpt, which looks at the continuing rise of the decentralized file storage network Filecoin.

What It Is

For anyone who has had a patient investment in Filecoin (FIL) for the past 12 months or longer, that investment is certainly in the payoff category now. But the meteoric rise in the value of Filecoin (by an astounding 3,273.52% over the last year, and a “not too shabby” 1,366.68% over its lifetime) shows that it is building some special capabilities in its overall mission and incubating new capabilities that will have special appeal to businesses as they try to find new and innovative ways to scale.

Let’s start with the basics. Filecoin is a decentralized storage platform that, in Filecoin’s words, is used “to store humanity’s most important information.” Meaning that it leverages the nature of true peer-to-peer technology not just to perform the standard blockchain use cases but to enable a whole new wave of application capabilities built on limitless, consumption-based storage models.

Why It Matters

Starting with the basics, minting new coins rewards users to build the network. This is how it works in the Filecoin universe and in others as well. So there is a constant incentive to do more. Filecoin’s native capabilities as an algorithmic storage market allow it to provide services that are important to businesses in general, such as storage of large quantities of mission-critical data, authenticity and provenance for data via time-stamping and blockchain signatures, payments (via Filecoin tokens/cryptocurrency), DevOps functions, secure code signing (SolarWinds, anyone?), and legal documents and trusts such as wills.

As Filecoin puts it, “humanity’s data,” such as scientific volumes, literature, and critical public data, also has a home here. Organizations such as Wikipedia, OpenStreetMap, and Project Gutenberg will store full copies of their data here. Marketers should note that the platform is expanding through Filecoin’s development community to offer video storage and streaming, content delivery networks, and advertising services such as tracking data. Business opportunities are plentiful for those looking for content monetization, gaming, video content, and video conferencing.

The Filecoin blog will tell you all about it.

Next week, we’ll unpack the cryptotechnologies behind the next evolution of the internet, called Web 3.0.