How does Filecoin work?
Just like with other DeFi and dApp configurations, filecoin works on a decentralized network of nodes that band together to preserve and reinforce the information preserved on its blockchain. Unlike a traditional centralized system that’s vulnerable to blackouts and downed servers, decentralized networks store their information communally, and are thus impervious to denial of service, or DoS attacks, and other network weaknesses that can cause ongoing disruptions.
By utilizing an interlocking system of miners, clients, developers, token holders, and ecosystem partners, filecoin users come to agreements on how the information will be exchanged, and how much FIL will be required to change hands to facilitate the transfer. From here, clients are able to request information from storage miner nodes who compete to fill their contracts and earn FIL. Once the terms of the agreement are settled, the transfer is initiated in such a way that ensures all the users, and their information, are protected.
To share information across the network, retrieval miners will duplicate the requested information and “seal” the copy on their node. Due to the immutable nature of blockchain technology, clients can rest assured that the authenticity of the information they are requesting is cemented in the digital ledger, and available for reference at any point in time. In turn, the network runs proof-of-replication and proof-of-spacetime consensus mechanisms to reinforce both the network and the information contained within: if all the copies don’t align, users are immediately notified of discrepancies within the network, while isolating and weeding out bad actors. Once all parties have verified that information is minted correctly on the blockchain, FIL is then doled out per the terms of the transaction.
Now that we understand a little bit more about how filecoin works, let’s learn how to buy filecoin (FIL) online in the USA using a credit/debit card. We’ll discuss how to complete transactions on CEX.IO using both a desktop web browser and the new CEX.IO App.