From a technical perspective, IPFS is a powerful protocol for distributed file sharing. However, good technology does not necessarily mean a good product. The act of users voluntarily sharing their idle hard drives to distribute files lacks any economic model for incentives. This is where Filecoin comes in. Filecoin and IPFS are complementary and both created by the same company, Protocol Labs, with Juan Benet as their founder. IPFS allows participants in the network to store, retrieve, and transfer verifiable data. With IPFS, each node can store data it deems important. However, before Filecoin, there was no way to incentivize others to join the network or store specific data. To address this crucial issue, Filecoin was created. Under the incentivized structure of Filecoin, customers pay to store data at specific redundancy and availability levels, while miners continuously store data and provide proof of storage to receive rewards.
In short, IPFS addresses and moves content based on its content, while Filecoin provides the missing incentive mechanism.
People who are optimistic about the Filecoin project generally believe that once the mainnet goes live, the demand for collateral will lead to a gradual release of the coins obtained through private sales after six months. This means that there will not be a significant amount of coins circulating in the market in the first half-year or even a year. The optimistic expectations for the coin price will encourage people to hoard coins, resulting in an initially positive trend for Filecoin's price.
Based on the optimistic expectations for the coin price, many people are participating in the mining of "head coins" in the early stages of Filecoin's mainnet launch, especially within the first six months. "Head coins" refer to the coins mined during this period. Mining Consultation V (ipfskj2020).
Due to the experiences of early Bitcoin and Ethereum miners getting rich, many investors who missed out on the Filecoin crowdfunding ICO saw mining Filecoin as an investment opportunity. They sensed a business opportunity and thus, IPFS mining machine manufacturers of various brands emerged. However, with Filecoin delaying its launch, they resorted to deceptive marketing tactics using the vision of IPFS.
Therefore, there has been a proliferation of IPFS/Filecoin mining scams. Many newcomers, without understanding the mechanisms of IPFS/Filecoin, blindly enter this field and fall victim to scams. Therefore, we advise everyone to consider crucial factors such as hardware performance, software technology, and the level of data centers when choosing a mining company. It is also essential to consider the cost-effectiveness of the mining machine and service fees. As a professional IPFS/Filecoin ecosystem service provider, we excel in both comprehensive strength and cost-effectiveness in the industry. Mining Consultation V (ipfskj2020).
