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What is Filecoin and Why is the Cryptocurrency’s price going up so much?

The Filecoin (FIL), a Cryptocurrency token associated with the decentralized file-sharing protocol of the same name from Protocol Labs, is growing heavily. 

Its price has shot up 429.2% in the past month making it his entrance to the top ten cryptocurrencies.

Now Filecoin has surpassed Chainlink (LINK) and it’s going to pass Litecoin (LTC) aiming to be the number 9 coin by market cap.

Why is Filecoin growing so much?

Filecoin brought the “decentralized Dropbox” to the consideration of crypto stockholders, including one of the leading exchanges, Coinbase listing Filecoin in December 2020.

But, there is another reason why Bitcoin has a big gain.

Filecoin trading activity carried out by the Chinese yuan has exceeded the trading volume of Ethereum or Bitcoin in recent days.

But why people buy Filecoin?

Filecoin it’s a mineable coin. 

According to Filfox, an average 370,000 FIL tokens are mined every day (that is about $82 million at the current FIL price), and no wonder, gas prices (on the Filecoin blockchain gas has the name: nanoFIL) are ticking up.

Unlike with Ethereum, Ravencoin, or Bitcoin mining, Filecoin miners must buy FILto be able to mine more of it, which involves new miners to always buying FIL to get starting capital.

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How does Filecoin mining work?

In almost all blockchain protocols, “miners” are the participants on the network that do the work required to advance the blockchain and maintain its validity. 

For these services, miners are paid in the native cryptocurrency. The term “miner” comes from the work done by hardware miners using computational power to secure blockchains.

Mining Filecoin works considerably differently: instead of providing computational power, miners provide storage capacity to be used in deals with clients looking to store data.

The Filecoin network will have 3 types of miners:

  • Storage miners, responsible for storing files and data on the network.
  • Retrieval miners, responsible for providing quick pipes to retrieve files.
  • Repair miners, soon to be implemented by the network.

What hardware do I need to mine Filecoin?

The hardware specifications for Filecoin mining are bound to the computational resources required to seal a sector and producing regular Proof of Spacetime for each sealed sector (WindowPoSt).

General hardware requirements

  • CPU
  • RAM
  • GPU
  • Disk
  • Specific operation requirements
  • About hardware requirements

A miner will need an 8+ core CPU.

It is recommended a CPU model with support for Intel SHA Extensions: AMD since Zen microarchitecture, or Intel since Ice Lake.

128 GiB of RAM is the minimum required, but far from being enough. 

A powerful GPU is recommended as it can significantly speed up SNARK computations. We talk about GPUs from GTX 1660 onwards, but a GeForce RTX 2080 Ti will be nice to have.

And the resistance piece: A minimal amount of 1TiB NVMe-based disk space for cache storage is recommended. But, if you can mine with a 50$ GPU it doesn’t mean you’ll get real money. So feel free to throw in a few more terabytes because just one won’t get the work done.

Feel confident to earn some Fil coins? Filecoin (FIL) has a Circulating Supply of 63,472,247 / 1,979,442,205, so the pie it’s still big and there are plenty of coins to be mined.

Let’s see where this Filecoin cryptocurrency will rise in the rankings in the coming weeks.

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