What is the relationship between Filecoin and FIL coin (Will FIL coin be like EOS)?

What is the relationship between Filecoin and FIL coin? We can see from the official website of Filecoin what the relationship between Filecoin and FIL coin is like.

Shortly after the mainnet went live on May 15, 2019, both projects started the mainnet launch and mapping phase, but only early investors were involved in these projects. During this process, many investors began to pay attention to the relationship between Filecoin and FIL coin, believing that they would have a significant impact on the market. But what is the difference between the two? The answer is Bitcoin.

Bitcoin is a peer-to-peer network based on the SHA256 algorithm. When users want to obtain Bitcoin, they need to download the Bitcoin client software and mine it. Then, they obtain smart contract code on the Ethereum through mining. If these codes cannot be executed smoothly, the entire blockchain will collapse. Therefore, for ordinary investors, cryptocurrencies like Bitcoin do not have any value support.

Over time, as storage transaction costs continue to decrease and more users choose to invest in it, there are now many exchanges in the market that provide Bitcoin trading services. So we can understand Bitcoin as a digital gold, designed to allow everyone to have a savings account and transfer wealth without compromising privacy. However, during the bull market in 2017, the price of Bitcoin skyrocketed to a historical high of nearly $20,000, reaching a peak of $20,000. However, in the following months, the price of Bitcoin continued to decline, with the lowest price at the time of writing being $16,600. Now people have discovered some problems with Bitcoin – for example, there are not enough assets to buy or there are security vulnerabilities that do not actually exist.

As one of the largest decentralized financial applications globally, Bitcoin has always been one of the most popular applications. Although Bitcoin has experienced a surge in recent years, its trend seems less impressive than expected in the past year or so. However, since the beginning of this year, after Bitcoin’s trend fell back, it gradually stabilized, and recently Bitcoin has once again shown a downward trend, reaching a high of $42,000 in early July, and then rebounding.

In August 2020, the price of Bitcoin reached a peak of over $4,000, and before that, it had been in a sideways consolidation for several months. According to CoinGecko data, Bitcoin has risen by more than 1000% by the end of October.

Will FIL coin be like EOS?

Editor’s note: This article is from Odaily and is authorized to be reproduced.

On February 8th of this year, Filcoin mainnet was launched and went live. At that time, the price of FIL coin was around $0.003 (approximately 43,000 Chinese yuan). However, the development team of Filecoin expressed on Twitter: “I don’t know if this means FileCoin will be like EOS? What’s going on?” According to previous reports, EOS has launched its own decentralized storage network and will collaborate with Filecoin for a fork upgrade. The new chain will consist of two main parts: 1. After the mainnet goes live, all miners will receive block rewards; 2. FIL tokens will be mapped to exchanges at a 1:1 ratio when the mainnet goes live; 3. Users can participate in mining by pledging tokens, and currently supported projects include IPFS, Filecoin, etc. So, for Filecoin, it is very meaningful to achieve this bidirectional anchoring effect. “We don’t plan to issue any tokens,” but the Filecoin community sees this as a good sign. According to official information, the FIL Foundation plans to invest $1 billion in this startup every year. In addition, the fund has also committed to using 20% of its funds for early contributors’ ecological construction work in the next three years. (Note: EOS is an open-source project)