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Why is FIL production so low (FIL output)?

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Why is FIL production so low? Editor\’s Note: This article is from IPFS Origin F

Why is FIL production so low (FIL output)?

Why is FIL production so low? Editor’s Note: This article is from IPFS Origin Force Area (ID: IPF-eva), author: Tony, authorized by Star Daily.

Why is FIL production so low? The output of FIL tokens is fixed, but its total quantity keeps decreasing.

According to the data statistics from Filfox browser, as of May 28, 2018, the average value of Filecoin’s network computing power was 39.8 EH/s, which is about twice the data of 137.7 TH/s on June 1, 2017. And in the 24 hours before the mainnet of Filecoin went live, there were more than 400,000 addresses participating in this project.

Although FIL has been widely used by miners and has received a lot of support since the beginning, with the continuous rise in Filecoin’s price, its value has become lower and even many assumptions have emerged. In fact, due to excessive market demand, some users choose to give up storage and turn to other aspects of the network for storage and retrieval to obtain rewards and pay transaction fees. Therefore, there are many reasons for this situation:

1. Since Filecoin is a decentralized protocol, we can regard it as a currency system;

2. Because FIL realizes a peer-to-peer transfer through smart contracts;

3. Because FIL’s issuance mechanism as a digital asset does not rely on any single entity;

4. To solve these problems, we have designed some incentive measures to attract more people to participate. For example, we will use some tokens to encourage everyone to participate in mining activities, which is beneficial to increase the income of mining pools and also reduce the Gas cost for users. In addition, the Filecoin official will allocate part of the funds to those who want to get more income.

So what exactly is Filecoin? It mainly consists of two layers, “consensus” and “application”, in which “consensus” (verification) is a process of establishing trust. It is also known as ‘blockchain’.

If we combine consensus with execution, what results will be achieved? That is to let people truly own their own books and make them believe that a certain technology or solution is feasible, reliable, and effective, so as to ensure that they are fully satisfied. This also means that as long as you want to be a holder of a certain cryptocurrency or just purchased a wallet called Bitcoin, you can access Bitcoin anytime and anywhere. When all these functions are effective, corresponding service fees will be generated, and additional sources of revenue will be brought. Of course, a more complex application can also be imagined: FileCoin, which is a distributed version file system (Distributed Storage System, referred to as DDos).

In addition to providing infrastructure, there is also a new feature called “proof of content authentication” (ProofofContentAuthentication, POAP), which is designed to allow Internet computers to generate content.

FIL output

Filecoin is the infrastructure of distributed storage projects, and its core is a decentralized storage protocol for data structures. Filecoin has built a verifiable computing network and consensus engine on IPFS, supported by the IPFS China community. The goal of the Filecoin project is to realize a peer-to-peer, secure, and efficient data storage system. This ecosystem can include cloud storage services, computing power trading, and many other application scenarios; Filecoin miners and the Filecoin official team have been actively involved in it. (Filfox browser)

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