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Comparison of the decentralized cloud storage protocols Filecoin (FIL) vs Storj (STORJ)

Cloud storage was a brilliant idea, but it lacked backup security and was managed by a centralized authority. Despite these drawbacks, it was nevertheless quite popular. On the other hand, thanks to blockchain technology, there are now safe storage solutions that are also cost-effective and decentralized. This classification of outlets includes Filecoin vs Storj among its members.

What is Filecoin?

Filecoin was first created in 2017 by Protocol Labs, but the mainnet didn’t go live until 2020. It was designed to function as a venue for the storing and retrieving of data. In order to verify that actions taken on the network are genuine, it employs a consensus process known as proof-of-storage, which is composed of evidence of counterpart and evidence of spacetime. The Interplanetary File System places it on the second level of its hierarchy (IPFS). The FIL is used in the process of settling transactions.

What is Storj?

The user-friendly and cost-effective cloud storage platform known as Storj was first launched in 2017 by the company known as Storj Labs on the Ethereum network. Farmers supply room for storage, while renters purchase this space from the farmers. This business model creates use of both farmers and renters. A sharding method is used in order to store the data across the network. STORJ has practical applications, including payment and incentive systems.

Difference between Filecoin and Storj

Filecoin has the ability to both store and broadcasts data, while Storj can simply store it. Filecoin allows for the creation of a market for the trade of raw data, while Storj was primarily designed for developers. Moreover, Storj offers stable data storage. Filecoin is the more decentralized option, whereas Storj has elements of both centralization and decentralization in its design.

Both allow transactions to take place between their respective users and service providers. Filecoin is built on a free match market that allows customers and data providers to communicate with one another in an unrestricted manner. Storj, on the other hand, implements a market maker model, in which customers pay the forum for the data services they need. Both Storj and Filecoin do not need users to pay any fees in order to migrate their data; nevertheless, Storj takes payments straight from users, while Filecoin makes use of its blockchain to resolve usefulness and compensation issues.

While Storj is dependent on the Ethereum blockchain, Filecoin employs an EC algorithm. Filecoin is a cryptocurrency that offers decentralized storage services in a world that is increasingly adopting decentralization. The fact that FIL is now valued $23.69 and has a market cap that is bigger than STORJ’s market cap of approximately $3.5 billion indicates that it is currently seeing mass acceptance.

Even if it seems like a good investment, you need to complete the necessary research before putting money into it. Be careful in your dealings, and invest only extra money.

Want to know the difference between decentraland and sandbox? Then read the decentraland vs sandbox comparison on the Godex website.

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