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Wednesday, 29 Sep 2021
Crypto Notes
A weekly newsletter decoding crypto, blockchain and the entire ecosystem.
By Rohas Nagpal

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All about Filecoin (FIL)

Over the last few weeks, we discussed Dogecoin (DOGE), Cardano (ADA), Binance Coin (BNB), Solana (SOL), Bitcoin (BTC), and Ether (ETH). This week we take on Filecoin (FIL).

Let's start with some interesting crypto news.

As many as 2.1 million Salvadorans are using the government's Chivo cryptocurrency wallet now that the tiny nation has made Bitcoin a legal tender. The app now has more users than any bank in El Salvador. The government has also airdropped $30 worth of Bitcoin to every account holder in the country.

Six crypto exchange-traded products (ETPs) are being listed in Germany. These relate to Cardano, Polkadot, Solana, Stellar, Tezos, and a Crypto Basket Index comprising Bitcoin, Polkadot, Ethereum, Cosmos, and Cardano.

A global survey has found that businesses and FIs are six times more likely to use cryptos for transactions than holding them on their balance sheets as investments. It also found that 58% of multinational firms use at least one crypto.

1. What is Filecoin (FIL)?

Name: Filecoin

Symbol: FIL

Overview:

Filecoin is the Airbnb for data.

It is a decentralized data storage network where excess storage can be bought and sold. It is also the incentive & security layer for InterPlanetary File System (IPFS). In simple words, it is a marketplace for unused storage - in consumer hardware and data centres.

In the conventional world, cloud service providers like Amazon Web Services (AWS) and Microsoft Azure provide centralized servers and IP addresses for user data. In the blockchain world, Filecoin uses hash-addressed content structures to reduce redundancy and increase efficiency.

Filecoin is integrated with Ethereum. This enables developers to access Ethereum blockchain data and interact with Ethereum smart contracts.

Filecoin (FIL) is the native crypto of the Filecoin network. It can be used to pay miners to store/distribute data and to retrieve information. Storage providers guarantee a minimum service level by providing FIL as collateral.

Filecoin's token sale took place in 2017 and raised $200+ million.

Consensus mechanism:

Proof-of-replication (PoRep) and Proof-of-spacetime (PoSt).

PoRep enables storage miners to prove that they are physically storing a unique copy of client data. PoSt proves that storage miners are continuing to dedicate storage space to client data over time.

2. Metrics

As of 28 September, its core metrics are:

Price metrics

Current Price: $ 57.5
All-time high (Apr 01, 2021) $ 237.24
All-time low (Aug 29, 2019) $ 1.83

Supply metrics:

Circulating supply: 109.7 million FIL
Total supply: 109.7 million FIL
Maximum supply: Unlimited

Note:

Circulating Supply is the number of coins / tokens in public hands.

Total supply is the number of coins/tokens created minus the number burned.

Maximum supply is the maximum amount of this crypto that can ever exist

Figures have been rounded off for convenience

Marketcap & Volume metrics:

Market Cap: $ 6.3 billion
Fully Diluted Market Cap: $ 6.3 billion
Volume (24h): $ 1.7 billion
Volume / market cap ratio: 0.28
Velocity: 15.86

Note:

Market cap = Current Price x Circulating Supply

Fully Diluted Market Cap would be the market cap if the maximum supply was in circulation

Volume (24h) is the fiat value of this crypto traded over the last 24 hours

Dominance measures a crypto's total market capitalization relative to the total market cap of all cryptos

Volume / market cap ratio = 24h Volume / Marketcap

Velocity = 24h Volume / Circulating Supply

Figures have been rounded off for convenience

RoI metrics:

Year Returns (%)
2020 +298
2019 +73

Risk metrics:

  Volatility Sharpe ratio
Last 30 days 1.6 -1.13
Last 90 days 1.2 0.73
Last 1 year 2.6 1.02
Last 3 years 2.5 1.1

Note:

Volatility measures the annualized standard deviation of daily returns

Sharpe Ratio measures the excess return for a given level of risk

3. Wallets

The recommended Filecoin wallet implementations are Lotus and Glif wallet.

Note: The data/graphs are from CoinMarketCap, Messari, and Future Money Wallet. Figures as of 28 September 2021

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Rohas Nagpal is an author, an amateur boxer, a blockchain architect, a Tintinologist and a retired hacker.

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