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Filecoin: A Decentralized Storage Network and Market

The Filecoin white paper describes a decentralized storage network that functions as an algorithmic market for data storage and retrieval. Building upon the tec

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Abstract

The Filecoin white paper describes a decentralized storage network that functions as an algorithmic market for data storage and retrieval. Building upon the technical foundations of IPFS, Filecoin introduces a cryptoeconomic layer that incentivizes participants to contribute storage space and reliability to the network. The system introduces two novel consensus mechanisms: Proof of Replication (PoRep) and Proof of Spacetime (PoSt). PoRep ensures that a storage provider has physically dedicated space for a specific piece of data, while PoSt provides continuous proof that the data remains stored over time. Through these proofs, the network achieves verifiable storage, creating a robust decentralized cloud infrastructure. Users pay for storage in the native FIL token, and providers compete for these contracts based on cost, speed, and capacity. By creating an open market for storage, Filecoin aims to lower costs and provide censorship-resistant infrastructure for the future of the internet. The document serves as an important synthesis of distributed systems engineering and game-theoretic economic design, demonstrating how to solve the ‘proof of retrievability’ problem at scale. Authors: Protocol Labs Publication: Project Whitepaper Publication date: 2017-01-01

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Key findings

  • Proof of Replication (PoRep) validates that storage providers have dedicated space for unique data.
  • Proof of Spacetime (PoSt) ensures continuous data availability over a specified duration.
  • The protocol establishes a competitive marketplace where storage costs are determined by supply and demand.
  • Token incentives align provider behavior with the goal of maintaining network reliability and storage density.

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Citation

Protocol Labs (2017). Filecoin: A Decentralized Storage Network and Market. Project Whitepaper. https://filecoin.io/filecoin.pdf
Canonical knowledge ID: research:filecoin-a-decentralized-storage-network-and-market