Decentralized storage, powered by incentives
Filecoin is redefining how data is stored by creating a global marketplace for storage. Its token, FIL, is now available for conversions on Bitso.
What is Filecoin?
Filecoin is a decentralized storage network developed by Protocol Labs. It allows users to rent out unused storage space while others can securely store their data without relying on centralized providers. The network uses a unique Proof-of-Storage mechanism to verify data storage, consisting of two cryptographic proofs to ensure the integrity of data over time: Proof-of-Replication (PoRep) and Proof-of-Spacetime (PoSt). These proofs are submitted on-chain by storage providers to verify that data is being stored correctly and consistently.
In addition to cold (archival) storage, Filecoin also supports verifiable hot storage through a cryptographic technique called Proof of Data Possession (PoDP). This allows users to verify that frequently accessed (hot) data is still available and intact, without needing to retrieve the full dataset. PoDP enhances the trust and usability of Filecoin for more performance-sensitive use cases.
Launched in 2020, Filecoin has become a key component of the Web3 data infrastructure.
What is FIL?
FIL is the native cryptocurrency of the Filecoin network. It is used to pay for storage and retrieval services, reward storage providers who contribute capacity and maintain data integrity, and incentivize honest behavior by penalizing failures to meet protocol obligations through the loss (slashing) of a portion of their collateral. FIL also plays a role in network governance, allowing token holders to participate in decision-making processes. While FIL’s utility is tied to network operations, its value depends on adoption, storage demand, and ecosystem growth.
What makes Filecoin unique?
Filecoin leverages global unused storage to create a distributed cloud. Its incentive structure rewards providers who meet protocol requirements and penalize those who fail to do so, ensuring verifiable and reliable storage through cryptographic proofs such as Proof-of-Replication (PoRep) and Proof-of-Spacetime (PoSt). The network integrates with Web3, supporting NFTs, decentralized apps, and permanent data storage. Through the Filecoin Virtual Machine (FVM), it also supports EVM-compatible smart contracts, enabling programmable storage and decentralized financial applications.
The story behind Filecoin and its founders
Filecoin was born from the vision of Juan Benet, a computer scientist and entrepreneur who set out to build a more resilient, decentralized internet. In 2014, he founded Protocol Labs, an open-source research and development lab focused on building foundational Web3 technologies. One of his first major innovations was the InterPlanetary File System (IPFS) — a peer-to-peer protocol designed to make the web faster, more secure, and less reliant on centralized servers.
Benet and his team realized that while IPFS made it possible to distribute content, there was still no reliable way to incentivize users to store that data over time. That insight led to the creation of Filecoin: a decentralized storage network powered by its own cryptocurrency (FIL), where users can pay to store data and providers are rewarded for offering storage space and proving they are holding it securely.
In 2017, Filecoin held one of the largest token sales in crypto history, raising over $200 million. After years of development, the network launched in 2020 and has since become a cornerstone of decentralized infrastructure — supporting everything from NFT platforms and scientific datasets to open-source archives.
Protocol Labs continues to guide Filecoin’s development, alongside a growing ecosystem of builders, researchers, and storage providers around the world.
Real-world example
A media company needs to archive large volumes of video securely and cost-effectively. Instead of relying on expensive centralized cloud services, it stores data on Filecoin’s network, paying in FIL. Storage providers around the world earn FIL for offering storage capacity and continuously proving that data is being stored as agreed.
How to buy FIL on Bitso
- Log in to your Bitso account or sign up.
- Use the conversion feature to swap your local currency (MXN, ARS, BRL, COP, or USD) for FIL.
- Enter the amount, review the details, and confirm your transaction.
You can track your holdings and FIL’s performance directly in the Bitso app.
Note: FIL is only available through conversions on Bitso. It is not supported on Bitso Alpha, and deposits from or withdrawals to external wallets are disabled. However, you can send and receive FIL between Bitso users via Bitso Transfer.
Disclaimer
FIL is the native token of Filecoin, a decentralized storage network where users pay for and provide storage services. Its value is influenced by network adoption, demand for decentralized storage, and market conditions. Cryptocurrency investments involve risk, and prices may fluctuate significantly. This content is for informational purposes only and does not constitute financial advice. Bitso encourages all users to conduct their own research (DYOR) before buying or using any digital asset.
