Road to Web3: Filecoin + Ethereum
By: Lbank Mining
Tags: Ethereum, Web3, Nft, Filecoin, Ipfs

Recently, Protocol Labs Founder Juan Benet talked about why Filecoin and Ethereum are better together and the vision of building Web3 with them at EthCC 2021, here’s the summary of the talk written by LBank Mining.

About Filecoin

Protocol Labs is a company that is driving breakthroughs in computing, it is best known for its protocols such as IPFS and Filecoin. Filecoin is a decentralized storage network designed to store humanity’s most important information, it is the storage network of Web3. The goal of Filecoin is to use crypto economic incentives to summon a large network of storage providers that eventually build the cloud but with crypto. Another component of Filecoin is to create a retrieval network in the later stage.

Filecoin network launched on Oct 15, 2020, and the network’s storage capacity has already reached 8EiB. Filecoin can be seen as a two-sided market, where on one side there are clients, such as individual users, companies that have a lot of data, and applications, on the other side there are storage providers that add the storage facilities to the network, adding 60PiB everyday – about the size of the entire internet archive.

Filecoin builds the large amount of capacity first, then turns that capacity into useful storage over time. The size of Filecoin’s storage deals is currently about 18PiB, this means that there’s a lot more capacity left on Filecoin network which is basically free to use.

Filecoin + Ethereum

NFT storage

One cool thing that Ethereum and Filecoin are doing together is NFT storage, 1.5million NFTs, which are mostly coming from Ethereum, are addressed in IPFS and backed up with Filecoin. NFT.Storage provides free NFT storage service for Web3.

Dataverse

Filecoin and Ethereum make it possible to create a dataverse where we can start making data on the network more useful and more valuable, Filecoin can be seen as a way to transact on moving or storing the data, and now we can start layering other kinds of economic values on top of it, NFT is one version of this, and there are other things like data feeds and the utility of those or being able to auction those or sell those to different parties.

Composable DeFIL

Putting market orders like asks, bids, and deals through a DEX to see how the market really values those orders. Building new financial structures like hardware futures on hard drive, SSD, GPU and so on, or even create futures on the storage contracts themselves.

Video NFTs

VideoCoin built all the machinery to connect their processing engine with Filecoin storage, now we can use their tooling to do all the video processing like small movie clips, vine style short video clips or full-length movies. Minting an NFT on Ethereum, storing the video and metadata on NFT.Storage.

Pay-per-view media

Making pay-per-view media like token-protected pages with full-length movies, music, arbitrary web pages.

NFTs as productive asset

NFT should provide the rights to use it as productive asset, so that it can be way more useful and valuable. If we can share the right to distribute the thing or charge for viewing the thing to the buyer, artists can focus on producing the art, not have to worry about marketing too much. This will blow up the NFT market, make it much larger than it is now. We can do this for large contents such as movies, 3D environments and dynamic environments like games.

Storage auction house

Filecoin Plus makes certain verified quality deals have notarized verifiable claim that lets them create deals that gives 10x the block rewards, clients can auction off those very valuable deals to miners, miners who really want those extra block rewards might bid with decreasing storage prices, dropping all the price completely to zero or potentially negative pricing. Creator or collector of valuable data can earn the money for giving the right to certain storage provider to store their data and serve it to the rest of the world.

Other things that Filecoin and Ethereum can build together are Airbnb-style marketplace, DEX order books, Web3 media apps, Web3 photo and video archives, Web3 social apps, open access science platform, DataDAOs, open access music, games, VR asset distribution, Metaverse and so on.

With the ability of building so many wonderful things, Filecoin and Ethereum together are leading us on the road to Web3.

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