Table of contents
introduction
Vast infrastructure is underutilized
FIL supply and demand contradiction: supply far exceeds demand
Technical challenges of commercialization: cold data storage vs. hot data storage
3.1 Application gap between cold data and hot data
3.2 Insufficient data processing and retrieval speed
Market demand lags: Why haven’t enterprises adopted Filecoin on a large scale?
Filecoin’s revenue model problem: reliance on pledge and fines
Technological breakthroughs take time: Filecoin’s future technological potential
Stagnation of early institutional profits and new capital inflows
Juan's team's challenges and global push
Filecoin’s official news: the latest progress in promoting commercialization
Will FIL return to zero? Is there still hope? How to correctly view market fluctuations
Conclusion: Filecoin needs time, but the prospects are still promising
Attached are effective suggestions for investors who are stuck at high prices
Article Content
Introduction: Since the launch of the Filecoin (FIL) mainnet in 2020, as a leader in the field of decentralized storage, it has been committed to challenging traditional centralized storage providers (such as AWS, Google Cloud, etc.) through distributed storage networks. Despite its strong technical foundation and the attraction of a large number of investors and miners, the commercialization progress has not met expectations. This article will analyze this phenomenon and explore the key breakthroughs and development opportunities in the next 2-5 years.
1. Vast infrastructure is underutilized
So far, Filecoin has built up 23 EB of storage capacity, which is equivalent to storing most of the global Internet content, or hundreds of millions of movies. This is an impressive number, showing the potential of Filecoin technology in the field of decentralized storage. However, it is worrying that this huge storage capacity is not fully utilized. Most companies and users still rely on traditional centralized storage providers, resulting in idle Filecoin storage resources.
Metaphor: Filecoin's storage capacity is like a huge parking lot, which can theoretically accommodate thousands of vehicles (corporate data storage needs), but currently only a few "car owners" (corporate users) are using it. This reflects that although the potential of decentralized storage is huge, the market demand has not been fully stimulated.
Despite Filecoin's strong technical reserves, most of the data in the current Web3 world is still stored on traditional centralized servers. For example, services such as Amazon AWS and Google Cloud still dominate, while public chains such as Solana have less data storage and have not adopted decentralized storage on a large scale.
Official solution dynamics:
Filecoin has demonstrated its potential for processing big data by collaborating with CERN, and has launched a "drag-and-drop upload" function in collaboration with DeStor RevOps and CIDgravity to simplify the storage process, lower the technical threshold, and improve resource utilization.
2. FIL supply and demand contradiction: supply far exceeds demand
Filecoin's token economic model relies on miners staking FIL to provide storage space, but the supply of FIL far exceeds the actual market demand. About 300,000 FIL are released to the market every day, and the continuous release of FIL Foundation and Protocol Labs further increases the supply. The current free circulation of FIL in the market has reached 643 million. However, due to the slow growth of storage demand, FIL prices continue to be under downward pressure.
Metaphor: It's like there is a large supply of fruit in the market, but the demand from buyers (corporate users) has not increased synchronously, so the price of fruit is difficult to maintain. The increase in FIL price needs to rely on actual market demand, rather than just the pledge of miners.
Official solution: Filecoin launches the Fil-RetroPGF funding program. Through cooperation with CIDgravity, it will improve data security and redundancy, enhance corporate confidence in decentralized storage, and thus increase demand for FIL.
3. Technical challenges of commercialization: cold data storage vs. hot data storage
Although Filecoin has launched the Filecoin Virtual Machine (FVM) to support decentralized applications, its core technical architecture still faces some challenges. Filecoin's current storage architecture is more suitable for cold data storage (data that does not need to be accessed for a long time, such as data archiving and backup), but most enterprises' needs are focused on hot data storage (data that needs to be frequently accessed and retrieved quickly).
3.1 Application gap between cold data and hot data
The market for cold data storage is relatively small, and is mainly used for long-term data storage scenarios such as archiving and backup. However, daily business operations rely more on hot data storage, which requires real-time processing and high-frequency retrieval of data. Filecoin's current technical architecture still has a technical gap in handling high-frequency data needs.
For example: Filecoin is like a library, suitable for long-term storage of infrequently used books, while enterprises need a library system that can quickly borrow and return books. Therefore, Filecoin's technical challenges in hot data storage limit its widespread enterprise application.
3.2 Insufficient data processing and retrieval speed
Compared with traditional centralized storage solutions, Filecoin still has a lot of room for improvement in data retrieval speed and data processing efficiency. Enterprises need efficient data retrieval and real-time processing, but Filecoin's current performance cannot meet this high-frequency storage demand. This is also one of the core technical bottlenecks that hinder the commercialization process.
Official solution: Filecoin launched Akave Alpha L2 and Storacha hot storage testnet, aiming to improve its ability to handle hot data in the future, help Filecoin meet the efficient data access needs of enterprises, and promote more commercial applications.
4. Lagging market demand: Why haven’t enterprises adopted Filecoin on a large scale?
Despite the advantages of decentralized storage, such as censorship resistance and data privacy, enterprises still prefer traditional centralized storage solutions. One of the main challenges facing Filecoin is the competition with traditional centralized storage solutions. Platforms such as AWS and Google Cloud provide storage services that are not only efficient, transparent, but also have complete technical support and customer service. Enterprises do not have enough motivation to switch from these centralized solutions to decentralized storage solutions. These solutions are not only efficient and mature, but also have a large user base and technical support. If Filecoin wants to change this situation, it needs to continue to educate the market and attract more corporate users through technological breakthroughs.
Metaphor: Filecoin is like a newly opened high-tech cinema. Although it has advanced equipment, the old cinema (traditional storage services) has already occupied the minds of users. Filecoin needs to change this market structure through technology upgrades and market promotion.
Official solution: Filecoin has simplified the "drag and drop upload" function by collaborating with DeStor RevOps and CIDgravity to help enterprises transition to decentralized storage more easily, enhance user experience, and further increase enterprise acceptance of decentralized storage.
5. Filecoin’s revenue model problem: reliance on pledge and fines
Currently, Filecoin's revenue mainly relies on miner pledges, network transaction fees, and fines for miners' failure to comply with the agreement. Although these revenues support the normal operation of the network, they are not enough to represent the revenue that companies actually pay for storage services. Filecoin's revenue model is still relatively simple, and it is difficult to promote the long-term rise of FIL prices. In order to establish a stable business model, Filecoin needs to achieve more payment for enterprise storage services.
Metaphor: Filecoin's revenue model is like a parking lot that relies on fines but has no long-term stable customers. This model cannot support long-term development.
Official solution: Filecoin promotes enterprises to pay for storage services through cooperation with DeStor RevOps and CIDgravity. The simplified storage process lowers the technical threshold for enterprises and helps promote long-term sustainable development.
6. Technological breakthroughs take time: Filecoin’s future technological potential
Although Filecoin has launched the Filecoin Virtual Machine (FVM) and has made some progress on the technical level, to truly meet the needs of enterprise users, it needs to further optimize its hot data storage capabilities. The technical complexity of Filecoin determines that its commercialization process will take more time, especially in terms of high-frequency data access and processing efficiency.
Metaphorically: Filecoin is now like a building that has completed its main structure, but the interior decoration and system configuration will take more time to complete. The next 2-5 years will be a critical period for whether this "technical building" can be fully implemented.
Official solution: Through the launch of FVM, Basin public test network and cooperation with DeStor and CIDgravity, Filecoin continues to improve storage and processing capabilities, especially in the field of hot data storage, and is expected to promote commercialization progress in the next 2-5 years.
7. Stagnation of early institutional profits and new capital inflows
Most of the investment institutions that entered Filecoin early have already made profits and left the market, while the pace of new funds entering the market is very slow. Especially in the context of the downward trend of FIL prices, the market lacks new growth momentum. Most early investors have made considerable profits through miner rewards and pledge mechanisms, but now the market needs new funds and corporate users who are truly willing to invest in the long term and promote commercial implementation. As the saying goes, "speculate on new things, not old things." New investment projects do not have too much selling pressure and bubbles, while old projects are often burdened with heavy burdens.
Metaphor: It's like a grand dinner, the early guests have already eaten and left, while the new guests are still hesitating whether to enter. Due to the slow entry of new funds, the market vitality of Filecoin and the growth of FIL prices have been suppressed. Only when Filecoin shows strong application potential in these emerging markets can it attract a new round of funds.
8. Challenges and global promotion of Juan’s team
Juan's team actively promotes the commercialization of Filecoin through global meetings and cooperation. We can see official news updates on Twitter almost every day. Especially in the fields of AI and Decentralized Physical Infrastructure Network (DePIN). The team strives to demonstrate the potential of Filecoin in cutting-edge technology, but in the process faces many challenges such as technical problems, lagging market demand, and internal team reorganization. The development of Filecoin is equivalent to an exploration of "crossing the river by feeling the stones" because there are no successful industry cases to learn from.
Metaphor: The development process of Filecoin is like building a complex bridge. The team constantly adjusts the structure and technical solutions during the design and construction process, and even members leave and new ones are recruited. Although progress is slow, the ultimate goal is to ensure the stability and security of the bridge.
9. Filecoin’s official news: the latest progress in promoting commercialization
, duration 00:55
According to the Filecoin community's roadmap for the second half of 2024, Filecoin is actively promoting the integration of DePIN, computing, storage, and AI networks to accelerate the commercialization process. The following are several key developments:
Basin Public Testnet: supports DePIN and AI networks.
Akave Alpha L2: Provides hot storage capabilities to improve the storage capacity of AI networks.
Storacha hot storage testnet: Helps Filecoin to be applied in social, gaming and media fields.
In addition, Filecoin has also launched the Fil-RetroPGF-2 funding plan, which supports the developer ecosystem and projects with 300,000 FILs to further promote the development of the decentralized storage ecosystem. This innovative funding method not only helps the developer ecosystem grow, but also lays a more solid foundation for the implementation of Filecoin's technology.
Example: Filecoin collaborated with CERN to demonstrate big data storage capabilities. Through collaboration with DeStor and CIDgravity, we further simplified enterprise storage solutions, lowered technical barriers, and accelerated commercialization.
These official updates show Filecoin's multi-channel efforts in commercialization, including funding developers and simplifying enterprise storage solutions, all in an effort to accelerate its commercialization.
10. The next 2-5 years: opportunities for technological breakthroughs and commercialization
The next 2-5 years will be a critical period for the successful commercialization of Filecoin. Its success depends on the following factors:
Technological breakthrough: Filecoin needs to solve the storage and retrieval efficiency issues and attract more corporate users to pay for storage services.
Enterprise cooperation: Filecoin’s cooperation with enterprises such as Aethir and Solana has demonstrated its commercial potential. More such cooperation in the future will help accelerate the commercialization process.
Developer ecosystem: Attract developers to contribute innovative applications to the Filecoin ecosystem through programs such as RetroPGF, and promote the expansion of technology scenarios.
As the demand for data privacy increases, the market potential of decentralized storage in the fields of AI and big data will further expand. Through close cooperation with partners such as DeStor and CIDgravity, Filecoin not only improves the enterprise user experience, but also demonstrates its possibility of commercialization in the next 2-5 years.
11. Will FIL return to zero? Is there still hope? How to correctly view market fluctuations
Many investors tend to feel anxious when the price of FIL fluctuates greatly, and even have doubts about whether FIL will return to zero. This anxiety usually stems from the high volatility of the crypto market and a lack of sufficient understanding of the project itself. But in fact, the possibility of FIL returning to zero is very low. As a leading project in the field of decentralized storage, Filecoin not only has a strong technical infrastructure, but also cooperates with many leading companies and scientific research institutions (such as CERN), demonstrating its great potential in practical applications.
Zeroing usually occurs in extreme cases such as complete project failure, technology elimination or team disbandment. Filecoin is in the process of continuous technological development and global commercial promotion. Its architecture and technology have been verified, and its combination with emerging technology fields such as Web3, artificial intelligence and big data has further enhanced its potential. Although FIL is currently facing supply and demand contradictions and market price fluctuations, with the continuous optimization of technology and the promotion of cooperation with more companies, Filecoin still has a strong development prospect in the next 2-5 years.
For those investors who are worried about FIL going to zero, it is recommended that you pay more attention to technological progress and ecological construction, rather than being limited by short-term market price fluctuations. The real value of Filecoin lies in its long-term application scenarios and commercial implementation, rather than short-term speculative fluctuations. Ultimately, investors need to cultivate independent thinking ability, understand the long-term value of the project, and make wise investment decisions on a rational basis.
Conclusion: Filecoin needs time, but the prospects are still promising
The next 2-5 years will be a critical period to determine whether Filecoin can be commercialized. Filecoin officials continue to promote the commercialization process by upgrading technology and simplifying enterprise storage solutions.
For investors, it is important to understand that Filecoin's development path is different from other smart contract platforms. It is more like a long-term infrastructure construction. Investors need to focus on its technological progress, corporate cooperation, and market demand stimulation, rather than short-term price fluctuations.
For those investors who are stuck at high levels, they must face up to the volatility and investment risks of the crypto market, remain patient, and understand the long-term development logic of Filecoin. In the future, with technological breakthroughs and the entry of new funds, Filecoin is expected to find new growth opportunities in decentralized storage, AI, and big data.
[Attached is effective advice for investors who are stuck at high prices:]
1. Re-examine long-term value and adjust your mindset
Filecoin is a long-term infrastructure project for decentralized storage, and its development speed is different from that of short-term speculative cryptocurrency projects. For investors who are stuck, they first need to recognize the long-term potential of Filecoin, especially its position in the decentralized storage market. The next 2-5 years will be a critical period for its commercialization, and investors need to understand that short-term price fluctuations do not mean project failure.
Recommendation: If you still believe in the long-term potential of Filecoin, you might as well take a long-term view and avoid making emotional decisions due to short-term price fluctuations. This will help reduce the psychological pressure caused by price fluctuations.
2. Reduce holding costs
For investors who are stuck at high prices, reducing the average holding cost is an effective strategy. Buying in batches when the price is low can reduce the overall holding cost, making it easier to get out of the trap even if the price rebounds slightly in the future.
For example: If you initially bought 1 Filecoin at $200, and now buy 10 more at $3.6 each, your average holding cost will drop to about $21.45. As long as the price rises above $21.45, you can break even.
3. Be patient and don’t operate too frequently
Frequent buying and selling may increase anxiety and lead to more losses. Especially in the crypto market, where prices fluctuate greatly, rushing to get out of the trap will only put investors in greater trouble.
Recommendation: Pay less attention to short-term prices and focus instead on Filecoin's technological progress, ecosystem development, and commercialization efforts. This will help you have confidence in your future investments without being affected by short-term fluctuations.
4. Learn to diversify your risks
Diversified investment is an important means to avoid the risk of a single project. If most of your funds are concentrated in Filecoin, you can consider investing part of the funds in other decentralized projects, such as Bitcoin, Ethereum, etc., to reduce over-reliance on a single asset.
5. Avoid emotional decision making and re-evaluate regularly
Emotional decisions often stem from market volatility and panic. In the face of a long-term downturn, investors should remain calm, regularly reassess their investment strategies, and make reasonable adjustments based on the actual progress of Filecoin.
Recommendation: Set investment goals reasonably, review your investment portfolio frequently, make rational decisions, and avoid being swayed by market sentiment.
6. Patiently wait for commercialization
The real value of Filecoin lies in its future commercialization process. Through cooperation with companies such as Solana and Aethir, Filecoin has demonstrated its potential in decentralized storage, AI computing and other fields. Although commercialization is progressing slowly, these collaborations will provide support for future price increases.
For example: The commercialization progress of Filecoin is like a newly built large parking lot. Although there are not many car owners (corporate users) parking there yet, with the promotion of technology and the market, the number of corporate users will gradually increase in the future, driving up the price of FIL.
Summarize:
Investors who are stuck at high levels should remain calm, rational, and develop long-term strategies. By reducing holding costs, diversifying risks, and paying attention to technological progress, investors can reduce the pressure brought by market fluctuations. Patiently wait for the commercialization progress to be implemented, especially in the next 2-5 years, which will be a crucial period for the development of Filecoin.
【Filecoin News 95】
https://filecoin.io/blog/posts/filecoin-news-95/
✨ Highlights ✨
Solana Ledger is now available on Filecoin — with more exciting updates coming soon!
Through the collaboration between Triton One and Dcent, the entire Solana ledger is now securely stored on the Filecoin network. But this is just the beginning! There are exciting new developments coming to the Filecoin x Solana collaboration, promising more innovation and convergence between the two ecosystems. Watch this video from Solana’s Breakpoint for an update from Juan Benet on what’s next!
FIL-RetroPGF-2 Schedule: Rewarding Contributions to the Filecoin Ecosystem
The Filecoin community recently launched FIL-RetroPGF-2, a grant program that rewards impactful contributions between April and September 2024. The program will go through several key phases:
Project Showcase: September 30 - October 14
Application period: October 14 to November 4
Badge Holder Assessment: November 11 - November 25
Funding allocation: Starting December 2024
This schedule provides a structured opportunity for participants to receive visibility, feedback, and funding for their contributions to the Filecoin ecosystem. For more information on how to participate in this round, check out FIL RetroPGF Round 2 on Substack.
🌎 Community Update 🌎
DeStor expands its decentralized cloud services through strategic partnerships
DeStor’s latest development is that their S3 cloud solution built on the Filecoin network combines scalability and security with a user-friendly interface, setting a new benchmark for decentralized storage. Partnerships with DCENT, Future Tech Holdings, Akave, and Seal Storage further strengthen DeStor’s commitment to providing powerful, compliant, and sustainable storage solutions. As DeStor continues to innovate, these collaborations highlight its leading position in the future of decentralized cloud storage. Read this latest blog post to learn all about it.
Storacha’s first hackathon!
Storacha is hosting its first-ever hackathon, called the “Storacha Halloween Hackathon,” and it’s set to be an exciting journey for developers, hackers, and tech enthusiasts. With a prize pool of $6,666 and categories like “Best Halloween Idea” and “Most Innovative Hack,” contestants must create cutting-edge, creepy projects using Storacha’s blazingly fast decentralized storage. The hackathon will take place from September 30th to October 27th, and the winner will be announced on Halloween — so get ready to unleash your inner coder! Sign up now.
Protecting KnownOrigin’s NFT Legacy: A Community Effort
With the recent closure of KnownOrigin, the NFT community is faced with a pressing challenge: preserving the metadata and media files of the countless NFTs created on the platform. NFT.Storage, in partnership with Pob Studio, is developing a long-term solution to ensure these digital assets remain secure and accessible. The initiative aims to preserve the legacy of KnownOrigin NFTs, and the community is invited to support this effort through active participation and advocacy. Read the full community proposal.
Aethir and Filecoin Foundation Partner on Decentralized GPU Cloud
Aethir and the Filecoin Foundation have joined forces to deliver decentralized, enterprise-grade GPU cloud computing and storage solutions to power industries like AI, machine learning, and web3. Through this alliance, Filecoin storage providers gain access to Aethir’s extensive GPU network, enabling them to efficiently scale operations while ensuring the security and transparency of decentralized infrastructure. Together, they are building a community-driven ecosystem to foster innovation, economic growth, and a more resilient digital infrastructure. Learn more!
Filecoin and Up Network are revolutionizing mobile decentralized storage
The Filecoin ecosystem is working with Up Network to integrate decentralized storage into Up Mobile devices, DeMIN, and UpOS as part of the Next Billion Movement. This collaboration aims to revolutionize decentralized data management and enable new possibilities for mobile users around the world. Stay tuned for more exciting developments as they shape the future of mobile technology!
Lighthouse.Storage and Destra Network Partner to Advance Decentralized Storage Solutions
Lighthouse.Storage is partnering with Destra Network to enhance the security and privacy of the Destra storage network while enhancing the AI-driven capabilities of the Destra OCAI platform through Filecoin. This collaboration introduces permanent storage and decentralized image resizing for web hosting through Lighthouse, greatly improving the reliability and flexibility of Destra's services. This collaboration marks an important step in building a decentralized future.
⚒️ Tools ⚒️
Get ready for F3 (Fast Finality) in Filecoin! 🚀
Get ready for the upcoming F3 activations in Network Release 24, which will significantly reduce finalization time. Storage providers, learn what this means for you and how to prepare. Check out the latest Q&A insights in the guide to get answers to your questions.
🎉 Events 🎉
Filecoin Orbit Meetup: Cybersecurity Challenges in Blockchain Systems
On Thursday, October 3rd at Zo House in San Francisco, top security leaders from the Filecoin Foundation and HackerOne will discuss the evolving cybersecurity landscape in blockchain systems, focusing on the unique vulnerabilities of decentralized networks and strategies for their protection. The event will include a panel discussion from 6:30-7:15pm, featuring insights from Ken Tolar (Filecoin Foundation) and Alex Rice (HackerOne), followed by a conversation. Attendees will gain valuable knowledge about securing blockchain infrastructure and have the opportunity to connect with experts in the field. Sign up to join!
Unlocking innovation at Filecoin’s dedicated hacker house in Chiang Mai
The Filecoin ecosystem will host its first Hacker House in Chiang Mai, Thailand from October 26th to November 3rd, inviting selected developers and innovators to participate in a 9-day immersive event focused on collaboration and community building. Participants will stay in shared hotels and co-working spaces to engage in discussions, develop new ideas, and shape the future of decentralized technology. The experience will continue at the FIL Dev Summit and FIL Bangkok, where insights from the Hacker House will be highlighted. Apply now, spots are limited!
Join the Filecoin Dev Summit 5 community in Bangkok
Welcome to the highly anticipated FIL Dev Summit 5 in Bangkok, the latest in a series of successful summits that bring together the brightest minds in the Filecoin ecosystem. Following the success of previous events, FIL Dev Summit 5 promises to provide even more opportunities for collaboration, innovation, and learning. With a rich agenda of hands-on workshops, insightful presentations, and valuable networking, this summit is the ideal place for anyone passionate about shaping the future of decentralized technology. Learn more and register.
DePIN meets AI at FIL Bangkok
Help shape the future of the network at Filecoin Bangkok. On November 11, leading Filecoin ecosystem projects will showcase their latest breakthroughs and experience the fusion of DePIN and AI at the Filecoin Bangkok Main Stage. In partnership with CoinDesk Studios, this Main Stage will highlight the growing number of cutting-edge L2 solutions built on Filecoin, key network upgrades, and the exciting trajectory of the Filecoin network.
Attached to past articles:
Filecoin cooperates with Aethir, Solana and others: promoting the commercialization of AI and Web3, can there be a turning point in the future?
The Current Status and Challenges of Filecoin [10,000-word article]
Four years of reflection on Filecoin and future rational investment strategies
The current status and future of Filecoin Virtual Machine (FVM); interpretation of new developments brought by the fast finalization mechanism (F3)
With the 450-fold speed increase of F3, how will Filecoin’s block confirmation and FVM change?
Decentralized AI and data storage: How does Filecoin become the cornerstone of trust?
A rational view of Filecoin: Uncovering the truth behind the ‘good news’
FIL partners must read: Decentralized hot data storage and the truth about FWS
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New sharing section: Deepen the BTC ecosystem and explore broad opportunities
After an in-depth discussion of Filecoin’s future potential, I will also start an in-depth study of the BTC ecosystem. Many people only know that BTC was born in 2008, with 21 million coins released by a mysterious person named Satoshi Nakamoto (Bitcoin: a peer-to-peer electronic cash system). From an experimental project that was almost worthless at the beginning to the world’s largest cryptocurrency with a market value of $1.22 trillion today, the rise of Bitcoin has not only changed the cryptocurrency field, but also shaped the future financial landscape.
Although most Bitcoins are stored in wallets for a long time, many people still only regard it as a store of value, ignoring the rapidly developing technological ecosystem behind it. With the maturity of Layer 2 technology, the support of smart contracts, and the introduction of cross-chain solutions, the application scenarios of Bitcoin are constantly expanding, gradually evolving from a simple "digital gold" role to a key role in the modern decentralized financial system. Especially in 2023-2024, the introduction of multiple new protocols (such as BRC-20, SRC-20, etc.) will enable Bitcoin to not only maintain the security of the network, but also actively participate in more complex application scenarios such as decentralized finance (DeFi) and cross-chain transactions.
In the following article, I will take you to have a deeper understanding of the evolution of the Bitcoin ecosystem and explore how it can gradually integrate into the modern financial system without sacrificing security. If you are interested in the future development of Bitcoin and the investment opportunities hidden behind it, please continue to pay attention and let us explore more potential and opportunities in the Bitcoin ecosystem together.