Will filecoin’s market value surpass Ethereum in the future?

Time:2021-7-30

More and more voices in the encryption industry believe that the possibility of Ethereum’s market value surpassing bitcoin is increasing.

Ethereum is valuable because Ethereum network is the most commonly used smart contract protocol. It has the largest number of developers, dapps, and the largest total value lock-in.

data storage

In 2018, Ethereum experienced a wave of currency issuance, which verified the basic asset shaping ability of the chain. Since 2018, the wave of defi has revived through asset-based transactions and other token listing forms. Among them, part of the reason is that Ethereum’s application protocol has developed relatively well in recent years. Secondly, ETH has experienced market verification and entered the vision of investment institutions and investors.

After 312, ETH began to enter the channel of currency price rise from a very low price. When the currency price rose, investors had enough income, and Ethereum mining increased steadily.

It can be said that in this bull market cycle, Ethereum has a particularly large scale of assets in the ecosystem. The re issuance and circulation of assets based on eth mortgage and synthetic assets have a great leverage effect.

However, these are based on the trend that Ethereum prices have been rising. Once entering the descent channel, many levers will disappear.

In the current cycle of cryptocurrency market, other public chains are also trying to expand and enrich the ecology.

At present, competing with Ethereum for technology, asset scale and users is certainly not a real weapon, which is not in line with the development concept of open source and inclusiveness.

In a sufficiently open ecosystem, diversity is used to attract and classify users. In addition to Ethereum, other blockchains with uniqueness have an absolute opportunity to overtake. Otherwise, we can only pull BNB like BSC to drive the growth of on-chain applications and defi. However, there is no real demand. Once the bear market arrives, there will be no retention.

The uniqueness of the chain is to rely on basic assets when the market goes down. For example, distributed storage filecoin.

data storage

Now it seems that financial application is the most basic realizable application of the chain, so the uniqueness of the chain is an idea to shape a sustainable business model in addition to financial applications.

Filecoin realizes the incentive of storage payment and resource access. Filecoin network is a global open source storage system, which is jointly created by a large number of diverse storage providers and developers. Consulting mining slf5576 has unparalleled flexibility and scale, and can adjust the strategy according to the needs of users in terms of backup, retrieval speed and cost.

Then, the data storage party has another choice to store data. On the premise that the IPFs system ensures its data security, the data can be stored in the filecoin network by paying a certain digital currency fil.

The filecoin network itself will also have relevant fil awards to these contributing peer nodes, which can greatly reduce the data storage cost of the storage party; Because of the reward of digital currency, more consulting mining slf5576 peer nodes can back up data. Of course, the storage party can also pay more digital currency for redundant backup; Consult the data of mining slf5576 in the filecoin network. The hash final value can be encrypted and unlocked by the private key to increase the privacy of the data. Multi signature verification of the private key can avoid the risk of personal data disclosure.

One feature of these designs is that there is a need to use the resources on the chain, and value can be created through the application of the resources on the chain.