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Filecoin (FIL) is a decentralized storage network built by Protocol Labs, a San Francisco-based research and development company founded by Juan Bennet in 2014.

Protocol Labs aims to create a decentralized, fast, affordable, and secure Web 3.0 with two products called Interplanetary File System (IPFS) and Filecoin.

IPFS is a peer-to-peer protocol that allows anyone to host and receive web content. Its second product, Filecoin, is built on the IPFS as an incentive layer and is a decentralized storage blockchain designed in 2017. Filecoin generated more than 200 million dollars at its presale.

Filecoin does not store files on the blockchain but handles all FIL transactions. It also stores all agreements between storage miners and clients renting storage data. Filecoin storage miners earn FIL tokens directly from their clients, proportional to the FIL stakes and the hard drive space they’ve committed to the Filecoin network.

FIL is Filecoin’s native token and is used to pay for network fees. It is considered a deflationary asset, meaning FIL tokens are burned whenever a storage miner stake is slashed.