What is the Best Investment in 2022?
Is Filecoin a Good Investment in 2022? Filecoin is a growing decentralized cloud storage network created by Protocol Labs that’s looking to power the next generation of Internet data storage solutions. While still somewhat under-the-radar in the eyes of the public, its vibrant, passionate community of developers, miners, and storage clients believe it to be a viable solution for the increasing storage demands of the future Internet. This begs the question, is Filecoin’s native cryptocurrency FIL a good investment for the coming new year?
With much in store from the promising project, all the signs are pointing to FIL being an excellent choice to add to your portfolio in 2022. In this article, we’ll be detailing a few recent developments from the team that exemplify why you should consider investing.
Filecoin Virtual Machine (FVM) a Good Investment in 2022
Last month Protocol Labs introduced general smart contract programmability to the Filecoin network, a groundbreaking upgrade that essentially adds a layer of computation abilities in addition to its existing storage and retrieval capabilities, opening up a plethora of new capabilities for the project that were never before possible.
What’s perhaps the most exciting aspect of FVM is that it gives developers the ability to create bridges for cross-chain interoperability as a means to share liquidity, meaning apps found in other blockchains like Ethereum, Polygon, Solana, etc. can be integrated with the storage capacity and various capabilities that the Filecoin network already provides. This includes functionality with well-known protocols we use today such as ERC-20 tokens, Decentralized Exchanges, DAOs, and NFTs.
Phase 1 of the Filecoin VM development roadmap is scheduled to go live in Q1 2022. For more technical details, please visit the Filecoin blog entry that introduces the Filecoin Virtual Machine.
The Filecoin team acknowledges the fact that using Filecoin and mining other cryptocurrencies such as the power-heavy Bitcoin will always use a fair amount of energy. For that reason, they’ve established Filecoin Green, a project aiming to “transform Filecoin into a verifiably environmentally positive network in order to make environmental impacts actionable and transparent throughout the Filecoin ecosystem and beyond”.
In an effort to stay true to their word and promote renewable energy usage, the first initiative released by Filecoin Green is an open-source dashboard that allows anyone to easily see how much electricity the Filecoin network and individual storage providers are using. According to project creator Alan Ransil, the same system could also be used by bitcoin miners to record their energy use and prove they’re using renewable energy sources. It’s no secret that Bitcoin’s image is somewhat tainted by its carbon footprint, but this dashboard has the ability to start a movement that could hold miners accountable and encourage the use of more environmentally-friendly energy resources.
NFT.Storage
NFT.Storage is a newly released free service by Protocol Labs built specifically for storing off-chain NFT data – that is, any data that isn’t on a blockchain. So why is this needed? Currently, the Web as we know it is entirely mutable, meaning it can change over time (unlike blockchains, which are made to be immutable). In the event of a particular domain changing, expiring, or going down, hyperlinks cease to redirect to their original intended file, page, or server. This leads to dead links, 404 pages, or other display errors in a phenomenon known as link rot. If you know anything about image hosting or NFTs, you can probably guess where this is going. Any changes to, or errors with the link, server, or domain that hosts the image of an NFT means you won’t be able to see it properly until it’s fixed.
That’s exactly what NFT.Storage aims to make a thing of the past by utilizing IPFS and Filecoin. Instead of NFT data being hosted on one specific domain, IPFS and Filecoin technology make it so that NFT files are decentralized and available through multiple network hosts. By storing data in this way, you can take comfort in knowing your precious NFTs can continue to stay online and visible without fear of their hosting data being altered or removed.
Closing Thoughts:
With Protocol Labs actively developing a wide array of projects and initiatives utilizing Filecoin, it’s no surprise why so many enthusiasts are feeling bullish about FIL. As the team’s progress continues and the project matures further, it’s surely only a matter of time before we see mass adoption and the price of FIL soar.
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