Filecoin is built on top of the InterPlanetary File System (IPFS), a peer-to-peer protocol designed for storing and sharing files in a decentralized manner. IPFS utilizes content-addressable storage, where files are identified by their cryptographic hash, ensuring data integrity and enabling efficient content retrieval.
The core technology of Filecoin revolves around three key components:
Storage Providers: These are participants who offer their storage capacity to the network. They receive Filecoin tokens (FIL) as compensation for storing and serving files. Storage providers need to demonstrate that they are reliably storing data through regular proofs, such as Proof of Replication (PoRep) and Proof of Spacetime (PoSt).
Clients: Clients are individuals or organizations seeking to store or retrieve data on the Filecoin network. They pay Filecoin tokens to storage providers in exchange for storing their data. Clients can choose storage providers based on factors like pricing, reputation, and location.
Miners: Miners in the Filecoin network play a critical role in securing the network by processing transactions and reaching consensus. They validate storage and retrieval proofs provided by storage providers and earn FIL tokens as rewards for their computational work. Show Less
