Filecoin

Bitcoin's 8-week win streak is in danger, but ATOM, FIL, EGLD, and ALGO don't care

Bitcoin is set to break its eight-week winning streak, but that has not affected the prospects of ATOM, FIL, EGLD, and ALGO, which look strong on the charts.

Bitcoin’s (BTC) eight-week winning streak is likely to end as the price is down nearly 4% this week. The recent weakness indicates profit-booking by traders but it does not change the short-term uptrend. The pullback will also help reduce the froth that may have been building.

After the initial shakeout, strong hands are likely to re-enter the crypto market as the macro environment remains bullish for risk-assets. The decision by the Federal Reserve to pause rate hikes and possibly reduce rates in 2024 could further boost demand for crypto products.

However, nothing goes up in a straight line. After sharp rallies, traders generally book profits and shift their focus to other coins. As Bitcoin takes a breather, traders’ are likely to turn their attention to select altcoins.

NFTs, gaming and storage: The key to Filecoin and Arweave accruing value?

Future growth in blockchain gaming, NFTs and the need for more decentralized storage could eventually benefit FIL and AR price.

With the rise of Ordinals on Bitcoin (BTC) sparking debate over how users should store their NFTs and blockchain gaming projects searching for cheaper, secure ways to store data, it’s time to revisit the discussion surrounding decentralized storage coins.

Decentralized storage protocols Filecoin (FIL) and Arweave (AR) show similar price action, leaving investors with a decision between the underdog showing signs of increased adoption by NFT users and blockchain gaming projects and the clear leader in market cap and adoption.

The total market capitalization of the entire digital storage cryptocurrency landscape today is $4.87 billion, according to data from CoinMarketCap, and each protocol provides something different. The two largest projects in the space by market cap that specifically addresses storage needs for NFTs and blockchain gaming are Filecoin and Arweave. Filecoin is currently the top-ranked project in the sector. It ranks 27th on CoinMarketCap by total market cap, but Arweave has significant on-chain activity and fundamental news that deserves attention.

The primary difference between the projects is their focus. Arweave is focused on long-term data storage with a one-time payment model, while Filecoin is more focused on incentivizing large-scale storage, especially for private data, and uses a tiered payment model based on storage time and space requests.

Filecoin has recently announced it would launch smart contracts, solidifying its new position as a layer-1 platform. This development has led to speculation on Filecoin’s future success in deploying Web3 offerings with real-world services like computing and storage, supported by Filecoin’s open marketplace for decentralized storage.

Given the current volatile crypto and macro climate, Filecoin revenue is notable at $2.53 million per month (up 238 over 30 days). Over the same period, fees are up 33% ($2.99 million), indicating strong demand for the platform. The market cap of FIL is at $2.76B, up 14% in the same period.

Didn't know that $FIL had $2.5m revenue per month, not shown on DefiLlama pic.twitter.com/jhVyTRNjTQ

— Nagato (@NagatoDharma) March 12, 2023

Filecoin has a maximum supply of 2 billion tokens and a circulating supply of around 403 million. Of the total supply, 70% is dedicated to mining rewards, which increase with network adoption. The rate at which new tokens are created decreases over time as the network matures.

By comparison, Arweave has a much smaller market cap of about $441 million, reflecting a 30% drop over the last 30 days. However, its maximum supply (66 million) compared to total circulating tokens (~50 million) could be more attractive to investors worried about inflation. In addition, AR’s price has been significantly depressed since its all-time high in late 2022.

*Arweave (AR) compared to Filecoin (FIL) by Total Market Cap. Source: CoinMarketCap.*

Arweave is an underdog in price and adoption, but it would be prudent to note the protocol’s rise in popularity due to its unique differentiator as a permanent storage solution for public data. That could be a clear advantage over competitors when providing infrastructure for the Metaverse. Meta already utilizes Arweave to permanently store digital collectibles from Instagram. Despite a significant drawdown in Metaverse and blockchain gaming projects, transactions on Arweave reached a monthly ATH in February (+20% MoM).

Last month: Another all time high for Arweave transaction counts (+20% MoM).

Tomorrow: Arweave 2.6 activates bringing greener and more accessible mining, as well as self-optimizing storage markets.

The permaweb is humming. pic.twitter.com/BmYszqfux0

— sam.arweave.dev (@samecwilliams) March 5, 2023

The increase in transactions may be associated with the upcoming release of Arweave 2.6, which aims to lower storage costs and increase energy efficiency for miners while improving the protocol’s ESG standing.

However, Arweave founder Sam Williams postulates that the bulk of transactions is thanks to Bundlr, which claims to increase transactions on Arweave by 4,000% without sacrificing security and at “~3000x faster” upload speed. Bundlr accounts for over 90% of data uploaded to Arweave.

Arweave’s price is down ~90% from its ATH, despite record-high transactions and its partnerships with Meta and the Solana (SOL) blockchain. That is less of a difference than Filecoin, a name down nearly 100% from its ATH.

Meanwhile, Arweave’s “Weave” (a blockchain-like structure) size has grown 135% YoY (134 TB). A recent report by Messari estimates 25% of the Weave is related to NFTs, while 72% is Web3 related. The report also mentions that Decentralized Social (DeSoc) projects like Lens Protocol use Arweave as the preferred decentralized storage platform.

On the flip side, Meta also recently announced it would be “winding down digital collectibles (NFTs),” which may cast a shadow on Arweave’s growth potential. In addition, Arweave’s storage growth is shadowed by Filecoin’s 1,390% (687,900 TB) increase over the same period.

It is also worth considering how recent news of Amazon’s upcoming NFT marketplace could impact the storage coin market. Arweave may get the most immediate impact thanks to its partnership with Avalanche (AVAX), considering the L-1 blockchain partnered with Amazon last year. While there’s no clear news from the company on whether they will use Amazon Web Services (AWS) or the InterPlanetary File System (IPFS) used by Filecoin, Arweave, and several other decentralized storage solutions, the increased awareness of NFTs via Amazon may ultimately channel users and capital into the system. Amazon’s NFT campaign will likely lead to more traffic on the leading NFT marketplace, OpenSea, which utilizes IPFS and Arweave for metadata storage.

If we look at the numbers: Yes.

Amazon has more than 310 million active customers worldwide.

If only 1% of them show interest in the new digital marketplace, our space will grow x-fold overnight.

(4/16) pic.twitter.com/JbB9o7vxpR

— wale.swoosh (@waleswoosh) March 7, 2023

The NFT market also shows signs of resilience, with $2 billion in trading volume in February, up 117% from the previous month, and the industry’s total value locked (TVL) climbing by over 7% ($81 billion). Blockchain gaming remained the dominant sector and a space hungry for decentralized storage (45% of DApp industry activity), despite a 12.33% decrease in on-chain gaming activity.

With the number of funding deals jumping 90% in February, it’s clear that there remains a strong interest in blockchain gaming in the long term, and that will bode well for storage coins that position themselves to aid that sector.

While the rise of blockchain gaming may boost storage coins like Filecoin and Arweave, it’s important to carefully analyze each project’s fundamental news, security, and adoption trends before making investment decisions. Filecoin appears to be the stronger choice with its greater adoption, but Arweave’s steady rise in usage in growing Web3 narratives remains an interesting trend to keep an eye on.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin’s bullish price action continues to bolster rallies in FIL, OKB, VET and RPL

BTC’s shallow correction near the $25,000 level could lead to dip buying in FIL, OKB, VET and RPL.

The Dow Jones Industrial Average fell for the third consecutive week but Bitcoin (BTC) price decoupled and is on track to close the week near the strong overhead resistance at $25,211. This suggests that the wider crypto market recovery is on a strong footing.

After Bitcoin’s sharp rally from the lows, analysts remain divided in their opinion about its next move. Some traders believe that the current Bitcoin rally will turn down once again, while others expect the momentum to continue, starting a new bull phase.

*Crypto market data daily view. Source:* *Coin360*

Chances are that Bitcoin and several other cryptocurrencies will continue to rally until a vast majority of the bears turn bullish. After that happens, a sizable dip is likely. That could shake out several weak hands and give an opportunity to the stronger hands to add to their positions. A higher low followed by a higher high may confirm the end of the bear phase and signal the start of the next bull market.

Meanwhile, select altcoins are looking strong and they may follow Bitcoin higher in the near term.

Let’s look at the charts to determine the critical levels to keep an eye on.

BTC/USDT

Bitcoin is trading near the stiff overhead resistance at $25,211. The small trading range days on Feb. 18 and Feb. 19 indicate that bulls are not hurrying to book profits and the bears are wary of shorting at the current levels.

The upsloping moving averages and the relative strength index (RSI) near the overbought territory indicate that bulls are firmly in command. A tight consolidation near a stiff overhead resistance usually resolves to the upside. If buyers catapult the price above $25,250, the BTC/USDT pair could accelerate to $31,000, as there is no major resistance in between.

Conversely, if the price dumps from the current level, it could find support at the 20-day exponential moving average ($23,115). The bears will have to pull the price below $22,800 to break the bullish momentum. The pair may then collapse to $21,480, which is likely to act as a strong support.

*BTC/USDT 4-hour chart. Source: TradingView*

The bears aggressively sold the rally to $25,250 but they could not tug the price below the 20-EMA. This suggests that the sentiment remains strong and the bulls are viewing the dips as a buying opportunity.

Buyers are likely to have another go at the overhead resistance. If they manage to drive the price above $25,250, the next leg of the uptrend could begin.

The first sign of weakness will be a break below the 20-EMA. That will embolden the bears who will then try to sink the price to $22,800.

FIL/USDT

Filecoin (FIL) soared above the immediate resistance level of $7 on Feb. 17. This shows the intention of the bulls to start a new up-move.

After a brief consolidation on Feb. 18, the bulls continued the up-move on Feb. 19. This strong rally indicates aggressive buying by the bulls. There is a minor resistance at $9.53 but that is likely to be crossed.

The FIL/USDT pair could then take aim at $11.39. This level is likely to act as a major obstacle, but if bulls do not allow the next pullback to dip back below $9.53, the uptrend may continue. The next resistance is at $16.

This positive view could negate in the near term if the price turns down from the current level and plummets below $7.

*FIL/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the bears tried to stall the up-move at $8 but the bulls did not allow the price to slip back below the breakout level of $7. This indicates aggressive buying on every minor dip. The rally picked up pace and reached the overhead resistance at $9.53.

Sellers may mount a strong defense at this level but the upsloping 20-EMA and the RSI in the overbought zone indicate that the path of least resistance is to the upside. If bears want to stop the rally, they will have to yank the price back below $8.

OKB/USDT

While most cryptocurrencies are languishing far below their all-time high, OKB (OKB) has been consistently hitting a new high for the past few days. Any asset that hits a new all-time high possesses strength.

The OKB/USDT pair turned down on Feb. 18, indicating profit booking above $58. In a strong uptrend, corrections usually do not last for more than three to five days. If the price turns up from $50, the bulls will try to propel the pair above $59. If they succeed, the pair could start its journey toward $70.

Another possibility is that the pair corrects sharply and retests the support at $45. If buyers flip this level into support, the pair may consolidate between $45 and $58 for a few days. The bears will have to sink the price below $44 to gain the upper hand.

*OKB/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that buyers bought the dip to the 20-EMA but the rebound lacks strength. Although the moving averages are sloping up, the RSI is showing a negative divergence. This indicates a weakening bullish momentum. If the 20-EMA cracks, the pair could slide to $47.50 and then to $44.35.

Alternatively, if the price turns up and breaks above $55, the bulls may have another go at the all-time high at $58.84. If this level is cleared, the pair may resume its uptrend.

VET/USDT

VeChain (VET) successfully held the retest of the downtrend line and thereafter broke above the overhead resistance, indicating that the bears may be losing their grip.

The moving averages have turned up and the RSI is near the overbought zone. This suggests that bulls have the upper hand. If buyers flip the $0.028 level into support during the next pullback, the VET/USDT pair may surge toward the next overhead resistance at $0.034.

Buyers are expected to protect this level with vigor because a break above it could indicate the start of a new uptrend. The pair may then rise to $0.05. This positive view could invalidate in the near term if the price turns down and plummets below the 20-day EMA ($0.025).

*VET/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the bulls kicked the price above the overhead resistance, indicating the start of the next leg of the up-move. If bulls sustain the price above the breakout level, the pair may pick up momentum and quickly rally to $0.032 and then to $0.034.

Contrarily, if the price turns down from the current level and breaks below the 20-EMA, several aggressive bulls may get trapped. That could start a deeper correction as longs bail out of their position. The pair may then slide to $0.022.

RPL/USDT

Rocket Pool (RPL) has been in an uptrend for the past few days. The price has not broken below the 20-day EMA ($45) during pullbacks, indicating strong demand to buy at lower levels.

The inside-day candlestick pattern on Feb. 18 and 19 shows that bears are trying to stall the uptrend near $56 but the bulls are not willing to surrender their advantage. If buyers thrust the price above $57, the RPL/USDT could march toward the next target objective at $74.

On the downside, the first support is at the psychological level of $50. If this level gives way, the pair may slip toward the 20-day EMA ($45). This is an important level for the bulls to defend because a break below it may signal a trend change in the short term.

*RPL/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that bears are trying to defend the $56 level but the bulls have not given up much ground. This suggests that buyers are holding on to their positions as they anticipate a break above the overhead resistance. If that happens, the pair could rise to $61 and thereafter to $74.

Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it will suggest that the bulls have given up and are booking profits. That may result in a deeper correction to the 50-day simple moving average and then to $38.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin price rally to $25K followed by total crypto market cap retest of the $1.13T resistance

This week’s bearish regulatory actions and rumors were not strong enough to suppress investors’ appetite for cryptocurrency.

The total crypto market capitalization rejected at $1.13 trillion on Feb. 16, but there was no change in the month-long ascending channel structure. More importantly, this level represents a 43% gain in 2023, which is far from the $3 trillion level achieved in November 2021. Still, the current recovery is notable.

*Total crypto market cap in U.S. dollars, 1-day. Source: TradingView*

As shown above, the ascending channel initiated in mid-January has left some room for a 10% correction down to $1 trillion without breaking the bullish formation.

Investors reacted positively to the 5.6% year-on-year U.S. Consumer Price Index inflation increase on Feb. 14 and the 3% retail sales monthly growth on Feb. 15. Bitcoin (BTC) had the biggest positive impact on the total crypto capitalization as its price gained 12.5% on the week.

One area of concern is a Feb. 16 story on Binance.US financial transactions to Merit Peak, a trading firm managed by CEO Changpeng Zhao. Interestingly, Reuters reported that a Binance.US spokesperson said Merit Peak was “neither trading nor providing any kind of services on the Binance.US platform.”

The 10.1% weekly increase in total market capitalization was held back by the modest 1.8% gains from BNB (BNB) and the XRP (XRP) 2.5% price increase. On the other hand, only three out of the top 80 cryptocurrencies finished the week with negative performances.

*Weekly winners and losers among the top 80 coins. Source: Messari*

Decentralized storage solution Filecoin (FIL) gained 59% and Internet Computer (ICP) soared 52% as Bitcoin blockchain demand for nonfungible token (NFT) inscription vastly increased the block space.

GMX rallied 34% as the protocol received $5 million in transaction fees on a single day.

Lido DAO’s LDO gained 34% as stakers evaluated proposals to manage the 20,300 Ether (ETH) held by the corporate treasury.

Leverage demand is balanced despite the generalized rally

Perpetual contracts, also known as inverse swaps, have an embedded rate that is usually charged every eight hours. Exchanges use this fee to avoid exchange risk imbalances.

A positive funding rate indicates that longs (buyers) demand more leverage. However, the opposite situation occurs when shorts (sellers) require additional leverage, causing the funding rate to turn negative.

*Perpetual futures accumulated 7-day funding rate on Feb. 17. Source: Coinglass*

The seven-day funding rate was close to zero for Bitcoin and Ether, meaning the data points to a balanced demand between leverage longs (buyers) and shorts (sellers).

Interestingly, BNB is no longer a top six cryptocurrency ranked by futures open interest, as investors’ demand for Polygon’s MATIC (MATIC) markets increased by 70% in February.

The options put/call ratio remains optimistic

Traders can gauge the market’s overall sentiment by measuring whether more activity is going through call (buy) options or put (sell) options. Generally speaking, call options are used for bullish strategies, whereas put options are for bearish ones.

A 0.70 put-to-call ratio indicates that put options open interest lag the more bullish calls by 30% and is therefore bullish. In contrast, a 1.40 indicator favors put options by 40%, which can be deemed bearish.

*BTC options volume put-to-call ratio. Source: Laevitas*

Even though Bitcoin’s price failed to break the $25,000 resistance, the demand for bullish call options has exceeded the neutral-to-bearish puts since Feb. 14.

Presently, the put-to-call volume ratio nears 0.40 as the options market is more strongly populated by neutral-to-bullish strategies, favoring call (buy) options by 2x.

From a derivatives market perspective, there are no signs of demand from short sellers, while leverage indicators show bulls are not using excessive leverage. Ultimately, the odds favor those betting that the $1.13 trillion total market cap resistance will break, opening room for further gains.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

Bitcoin could take a break from its sharp rally and if its price bounces off underlying support, APE, MANA, AAVE and FIL could break out.

After nearly a 20% rally last week, Bitcoin (BTC) is on track to end this week with gains of roughly 10%. Bitcoin’s rally has improved sentiment and attracted buying in several altcoins. This sent the total crypto market capitalization firmly above the $1 trillion mark.

The strong recovery in Bitcoin has startled several analysts who remain skeptical about the rally. Some believe that the current rise is a dead cat bounce that will reverse direction sharply, while others see similarities between the current rally and the 2018 bear market recovery.

Although traders should be ready for any eventuality, the pace of the rise in Bitcoin does point to a possible major bottom. There are likely to be bumps down the road but the dips are likely to be aggressively purchased by traders.

Bitcoin’s sustained recovery may encourage buying in select altcoins.

Let’s study the charts of Bitcoin and select altcoins that are showing strength in the near term.

BTC/USDT

Bitcoin climbed above the $21,650 overhead resistance on Jan. 20, indicating the resumption of the up-move. This shows that demand remains strong at higher levels.

The bulls pushed the price above the $22,800 resistance on Jan. 21 but failed to build upon the breakout as seen from the long wick on the day’s candlestick.

While the upsloping moving averages indicate that bulls are in command, the relative strength index (RSI) in the overbought territory warrants caution. It suggests that a few days of consolidation or minor correction is possible.

However, when a new uptrend starts, the RSI sometimes tends to remain in the overbought zone and frustrates the bears. If that happens, the uptrend may continue without a major pullback and the pair could reach $25,211.

On the downside, the first support is at $21,480. If the price rebounds off this level, it will suggest that the bulls are buying on every minor dip. That could increase the likelihood of a rally to $25,211.

The four-hour chart shows that the bulls are trying to flip the $22,800 level into support. If the price continues higher and soars above $23,271, the bullish momentum could pick up and the pair may rush toward $25,211.

If the price turns down and breaks below $22,600, the pair could slide to the 20- day exponential moving average (EMA). This level may act as a support but if bears manage to pull the price below it, the next stop could be $21,480.

APE/USDT

ApeCoin (APE) has been range-bound between $7.80 and $3 for the past several months. After the bears failed to sink the price below the range, the bulls are attempting a comeback. They will try to propel the price to the resistance of the range.

The upsloping moving averages and the RSI in the overbought area suggest that buyers have the upper hand. There is a minor resistance near $6.40 but if buyers bulldoze their way through it, the APE/USDT pair could surge to $7.80. This level may witness aggressive selling by the bears.

The positive view could invalidate in the near term if the price turns down and breaks below the 20-day EMA ($4.80). That could sink the price to the 50-day simple moving average ($4.17).

*APE/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the pair is in a strong uptrend. The bears are trying to stall the up-move at $6 but a positive sign is that the bulls have not given up much ground. This indicates that every minor dip is being purchased. The bulls will now try to propel the price above $6 and resume the uptrend.

On the contrary, the bears will try to pull the price below the 20-EMA. If they succeed, the pair could attract profit-booking from the short-term bulls. The pair could then tumble to $5.

MANA/USDT

Decentraland (MANA) rallied sharply from $0.28 on Dec. 30 to $0.78 on Jan. 21, which shows strong momentum in favor of the bulls.

The bears sold the break above $0.74 on Jan. 17 but the bulls stepped in and bought the dip at $0.61. This shows that the sentiment remains positive and traders are viewing the dips as a buying opportunity.

The bulls will have to sustain the price above $0.74 to signal the start of the next leg of the recovery. The MANA/USDT pair could surge to $0.87 and thereafter to the psychological barrier at $1.

If bears want to gain the upper hand, they will have to sink the price below $0.61. If they do that, the pair could start a deeper correction to $0.53.

*MANA/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows the formation of an inverse head and shoulders pattern. If buyers thrust the price above the neckline of the pattern, the setup will complete and the pair could spurt toward the target objective at $0.93.

Contrarily, if the price turns down from the current level and breaks below the moving averages, it will suggest that the bears are fiercely guarding the $0.74 resistance. The pair could then plunge to the $0.61 to $0.55 support zone.

AAVE/USDT

Aave (AAVE) broke and closed above the downtrend line on Jan. 17 signaling a potential trend change. The bears tried to yank the price back below the downtrend line on Jan. 18 but the bulls held their ground.

The upsloping 20-day EMA ($74) and the RSI in the overbought region suggest that bulls have the edge. This advantage could strengthen further with a break above $92. The AAVE/USDT pair could then rally to the psychologically crucial level of $100.

This level may again pose a strong challenge to buyers but if they overcome this obstacle, the pair could skyrocket toward $115.

Contrary to this assumption, if the price turns down and dives below the downtrend line, it will signal that bears are active at higher levels. The advantage may tilt in favor of the bears on a slide below the 20-day EMA.

*AAVE/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the bears are defending the zone between $88 and $91 but they haven’t been able to pull the price below the moving averages. This indicates a bullish sentiment where traders are buying the dips.

The bulls will make one more attempt to clear the overhead zone. If they can pull it off, the pair could resume the uptrend.

Instead, if the bulls fail to push the price above $91, the bears will try to tug the pair below the moving averages. The pair could then fall to $78 and later to $73.

FIL/USDT

Filecoin (FIL) broke above the downtrend line on Jan. 14 and held the retest of the breakout level on Jan. 18. This suggests that the bulls have flipped the downtrend line into support.

The moving averages have completed a bullish crossover and the RSI is in the overbought space, signaling that bulls are in control. The FIL/USDT pair could rally to $6.50 where the bears may again mount a strong defense. If bulls kick the price above this level, the up-move could reach $9 with a brief halt near $7.

The 20-day EMA ($4.24) is the important support to watch out for on the downside because a drop below it could tilt the advantage in favor of the bears.

The bears tried to stall the relief rally at $5 but the bulls pierced this resistance and started the next leg of the recovery. The upsloping moving averages and the RSI in the overbought zone indicate that bulls are firmly in the driver’s seat. Buyers will try to nudge the pair toward $6.50 and then $7.

On the downside, the 20-EMA is the critical support to pay attention to. If the price rebounds off this level, it will indicate that the uptrend remains intact. On the other hand, if bears drag the price below the moving averages, the pair could collapse to $4.20.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Decentralized Storage Alliance seeks to bridge the Web3 gap through education and advocacy

The organization said that it intends to promote awareness and adoption of decentralized technologies, such as Filecoin, IPFS and Libp2p.

Decentralized storage network Filecoin has partnered with Protocol Labs and other participants within the Web3 ecosystem to launch the Decentralized Storage Alliance. According to the announcement, one of the main goals of the newly formed alliance is to help Web2 enterprises transition to Web3 through education, advocacy and best practices.

The Alliance said it hopes to achieve this by bringing together diverse viewpoints from leading Web2 and Web3 industry players, such as Advanced Micro Devices, Ernst & Young and data storage solutions provider Seagate. The organization aspires to become a trusted space where different companies can collaborate around Web3 technologies like decentralized storage in order to accelerate its adoption.

It also seeks to provide access to educational materials and technical resources that will improve the process of onboarding data to decentralized storage networks, and make it easier for new data centers to onboard to the network.

Stefaan Vervaet, head of network growth at Protocol Labs, claimed:

“With top-tier leaders across Web2 and Web3 coming together to explore the unrealized potential of decentralized technology, this Alliance has the power to transform the foundation of the internet.”

On Oct. 25, Cointelegraph reported that another Protocol Labs initiative launched CO2.Storage, a Web3 data storage solution that intends to enable transparency for carbon offsets and address traditional storage solutions for all types of digital environmental assets, including renewable energy credits. The initiative was designed with the intention of reducing the environmental impact of Filecoin.

Filecoin launches Web3 data-storage solution for carbon offsets

This free storage utility aims to address the shortcomings of traditional storage solutions for all types of digital environmental assets, said the company.

Filecoin Green, a Protocol Labs initiative designed to reduce the environmental impact of FIlecoin (FIL) and make it verifiably sustainable, has spearheaded an initiative to power Web3 technology with verifiably clean energy.

According to the announcement, the company is set to address the shortcomings of traditional carbon storage solutions by “marrying blockchain’s granular tracking functionality with the information-sharing infrastructure of Web3.”

Filecoin Green launched CO2.Storage, a Web3 data storage solution that intends to enable transparency for carbon offsets and address traditional storage solutions for all types of digital environmental assets, including renewable energy credits.

As part of the initiative, Filecoin Green said it has partnered with several companies involved with tokenizing carbon offsets, such as Toucan, Thallo, Ripple, the HBAR Foundation, Envision Blockchain, Return Protocol and Gainforest. The data storage solution will enable carbon credit providers to define their own data schemas and store this data through content-addressing on Filecoin and the InterPlanetary File System, thereby creating a transparent system for carbon credits.

Carbon emissions and carbon credits have become a prominent topic, as traditional organizations and governing bodies are beginning to look to blockchain technology as a viable path to reducing carbon emissions.

In 2021, the United Nations Environment Programme and other governing bodies convened at Middle East and North Africa Climate Week to examine blockchain’s potential for tackling climate change.

On Aug. 10, Cointelegraph reported that organizations in the crypto space are also looking to improve the ecosystem through blockchain-tracked donations to carbon removal projects, tokenized carbon credits and carbon-neutral blockchains.

A few blockchain companies are also taking a stand. In April 2022, Algorand announced that its blockchain was entirely carbon-neutral, while in September 2022, Ethereum cut down its energy consumption by 99.9% by transitioning to the energy-efficient proof-of-stake protocol.

Blockchain could help anonymously document war crimes

Blockchain combined with decentralized storage could ensure data preservation and anonymity when reporting war crimes.

Human rights investigators appointed by the United Nations have confirmed that war crimes have been committed by Russian forces in Ukraine. The Independent International Commission of Inquiry on Ukraine was created in March 2022 to provide a framework for UN human rights investigators to report war crimes in the region.

Erik Møse, chair of the Independent International Commission of Inquiry on Ukraine, stated in the UN’s article that “Investigators visited 27 towns and settlements and interviewed more than 150 victims and witnesses.” Møse also noted that “Sites of destruction, graves, places of detention and torture, as well as remnants of weapons,” were inspected.

While the report developed by the commission has allowed UN investigators to document war crimes in Ukraine, tools and protocols are still needed to enable individuals to accurately and securely report these acts. Additionally, the need to preserve war crime evidence has become critical as the war in Ukraine enters its seventh month.

Given these challenges, industry experts believe that blockchain technology has the potential to solve many of the issues faced by individuals and organizations documenting war crimes. For example, Jaya Klara Brekke, chief strategy officer at Nym — a platform powered by the Cosmos blockchain that protects the privacy of various applications — told Cointelegraph that Nym is developing a tool known as AnonDrop that will allow users to securely and anonymously upload data. She said:

“The intention is for AnonDrop to become a tool that democratizes the gathering of evidence that can be used to pursue human rights cases. In the current climate in Ukraine, this would be particularly important for the purpose of securely documenting and sharing evidence of war crimes anonymously.”

“The core technology of Nym is a mixnet, which takes data from ordinary users and mixes it together using encryption to make everything look identical. It protects against people watching the network, along with metadata surveillance and IP tracing,” she elaborated. While Nym provides an anonymity layer to allow users to transmit data without revealing who they are, information then gets stored on the decentralized storage network Filecoin.

Will Scott, a software engineer at Protocol Labs — a company working with Filecoin on its decentralized storage solution — told Cointelegraph that some of humanity’s most important information is stored on Filecoin to ensure that data remains publicly available.

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A blockchain network combined with decentralized storage could be a critical tool for documenting war crimes since it allows individuals in regions like Ukraine to anonymously report, share and retain data. A Wall Street Journal article published in May 2022 stated that “Prosecutors say that, with Russian forces having occupied so much of the country, it is impossible to process all of the evidence of every potential war crime.” Moreover, Ahmed Ghappour, Nym general counsel and associate professor of law at Boston University, told Cointelegraph that it’s becoming critical for witnesses of human rights violations to come forward without fear of retaliation. He said:

“In Ukraine, where witnesses of war crimes are facing a technologically sophisticated adversary, network level anonymity is the only way to guarantee the safety and security needed to provide evidence to prosecute perpetrators.”

A work in progress

Although the potential behind AnonDrop is evident, Klara Brekke noted that the solution is still in its early development stages. “We took part in the Kyiv Tech Summit Hackathon this year hoping to find individuals who could help us extend AnonDrop’s functionality. For instance, AnonDrop’s user interface is not fully up yet and we still need to find a way to verify the authenticity of images uploaded to the network,” she explained.

Ghappour elaborated that verification is the next critical requirement for making sure evidence uploaded to the Nym network can be used in court. “I think one of Russia’s greatest strengths in this war is the region’s ability to deny that any evidence is valid. Russia’s use of deepfakes and misinformation is another strength. We need to guard against these attacks.”

Ghappour mentioned that in order to combat this, image providence features must be implemented within AnonDrop to enable easy verification when documents are examined in a court of law. Even though such processes for image verification currently exist through tools like SecureDrop — a solution that allows individuals to upload photos anonymously for media outlets to use — Ghappour believes that these are limited to siloed organizations.

“We want to take image verification a step further by democratizing the process, ensuring this feature is available to users rather than just media outlets.”

Once image providence is implemented, verifying war crimes could become easier for court officials. Brittany Kaiser, a human rights legal expert, told Cointelegraph that she believes such a tool could help advance the human rights documentation space, where often individuals feel too at risk to submit findings themselves.

“Through images alone, it is possible to verify typical indicators of atrocity crime, including, but not limited to, mass graves, torture marks, binding of hands, executions and other violations of international human rights law that amount to war crimes or other atrocity classifications,” she remarked.

Given the potential for this use case, it shouldn’t come as a surprise that AnonDrop isn’t the only blockchain application focused on the preservation and verification of war crimes. Starling Labs — a Stanford-based research lab focused on data integrity using cryptography and decentralized web protocols — is also using blockchain technology to report war crimes. However, verifying the integrity of data remains the biggest challenge for both Nym and Starling Labs, even with image providence in place.

For instance, Scott pointed out that progress must be made in order to make sure images are legitimate and that verification works well. He further remarked that access to the internet in various regions of Ukraine is censored: “There are distribution questions that are important to consider here.”

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Challenges aside, it’s notable that organizations responsible for prosecuting war crimes are considering using technology to help advance traditional processes. For example, The International Criminal Court (ICC) in The Hague noted in its strategic plan for 2016 to 2018 that it could “support the identification, collection and presentation of evidence through technology.”

The report further noted that the ICC is interested in developing partnerships with non-governmental organizations and academic institutions to facilitate the use of technological advancements for war crime documentation. In the meantime, Ghappour emphasized that Nym will continue to push forward with enabling AnonDrop to be used in regions like Ukraine: “Russia has prolonged wars in the past, so we need to progress with this project no matter what.”

Filecoin service provider announces move to Singapore in light of tightening restrictions in China

The service provider also announced the launch of a new system upgrade to increase yield efficiency.

RRMine Global, a Filecoin service provider offering global cloud-computing asset management, announced Wednesday that it has shut down business operations in mainland China and is relocating its headquarters to Singapore.

The company said the decision to move countries and launch upgrades to their system came after the it rebranded from RRMine to RRMine Global.

RRMine Global is ending its operations in Mainland China after the Chinese government tightened cryptocurrency restrictions, signaling the government’s commitment to heavily regulating the Web3 industry. Steve Tsou, the global CEO of RRMine Global, shared:

“Very much like other entrepreneurs, we want the best for our company, employees, and community. The decision has been made after a profound examination and multiple discussions.”

Singapore seems like an obvious choice for the project, as many Chinese Web3 companies have already made their move to the country. Singapore offers a relatively balanced regulatory approach toward the emerging crypto industry and has a reputation for being one of the world’s leading open economies.

The company also revealed the official launch of a new upgrade service, R-Datacap storage, which is expected to reduce operational costs and increase yield efficiency.

CEO, Steve Tsou shared, “We are taking the lead in Web3.0 technology research and development to create a more efficient system for tackling the issue. Data storage providers will receive ten times the output incentive under the FIP-0012 proposal, which Filecoin approved. We are excited to bring this innovation to RRMine Global and Filecoin users very soon. It will undoubtedly be a game changer for our storage industry.”

More resilient and user-controlled than the AWS: Colin Evran’s vision for Filecoin

“Filecoin is more than just storage, one can think of it as an Airbnb for cloud services.”

At the beginning of 2021, Filecoin was a relatively unknown decentralized peer-to-peer storage service with a total network capacity barely making a dent in the digital storage space. Less than 2 years later, the Filecoin team claims the blockchain has grown to eclipse 10% of the storage capacity of Amazon Web Service, the most popular vendor in the cloud infrastructure services market. This includes the use of the storage — by well-known blockchain firms such as OpenSea and Magic Eden — of some 239.03 terabytes of nonfungible tokens (NFTs), worth an estimated $26.6 billion as of early September.

NFT storage on Filecoin | Source: NFT.Storage

How did Filecoin become so successful? And what motivates its developers to grow the ecosystem? Colin Evran, ecosystem lead at Protocol Labs, which is the creator of Filecoin, says a big factor in his desire to join Filecoin was his disillusionment with how things operate in Web2.

“It’s still going in the wrong direction,” he said. “A handful of companies are now controlling the world’s data, in my opinion, without checks and balances in many ways. And I just thought such levels of centralization over a period of many decades isn’t going to be the answer for everyday users.

“I fundamentally believe if you zoom out 40 years from now, the answer is not like AWS storing 100% of the world’s data. I don’t think that’s good for society. I don’t think that’s what users really want,” he said.

Evran took some lateral steps in his path toward the blockchain sector. Having finished Ivey Business School at Western University in 2006, he first became an analyst for McKinsey before venturing into the field of private equity. Then he returned to the academic world to get his masters from Stanford Business School.

Colin Evran of Filecoin | Source: Twitter

After graduation, Evran founded a startup in the construction tech space called “Yard Club.” Four years later, the firm was sold to Caterpillar, the world’s largest construction equipment designer.

As told by Evan, the financial surety from the deal gave him the ability to focus on a project that was much more in-depth. “I really wanted to work on a piece of technology that could conceivably impact every man, woman, child, and every company in the world if it was successful. So a good friend of mine introduced me to Protocol Labs, the creator of Filecoin.”

Filecoin’s InterPlanetary File System (IPFS) enables users to store and transfer content in a peer-to-peer manner. It is the heart of Filecoin, containing three components: unique identification via content addressing, content linking through directed acyclic graphs (DAGs) and content discovery via distributed hash tables.

As its incentive layer, Filecoin serves to verify that all data is stored with the appropriate cryptographic proofs. Storage providers on Filecoin have two primary sources of revenue, block rewards and network fees. Block rewards are allocated proportionally based on submitted cryptographic proofs of the data they store.

Currently, there are about 25,000 transactions on the Filecoin blockchain per day and in total there is about 127 pebibytes (1PiB = 1,125,900 Gigabytes) worth of data stored on it. In terms of total capacity, Filecoin developers say that the network is currently at around 10% of the AWS’ storage capacity.

Filecoin network metrics | Source: Starboard Ventures

At the beginning of the year, storing data on Filecoin was at less than 1% of the cost of comparable services on AWS. But now, Evran explains that some storage costs have fallen into negative territory, while the typical storage costs have also decreased to less than 0.5% of centralized providers.

“With such a magnitude of cost reduction, many small businesses and freelancers worldwide can now afford to store people’s data.” He continues: “It’s similar to how Airbnb unlocked the ability for average homeowners to host guests, which wouldn’t have been possible in a hotel-dominated world.”

For Evran, the novel Filecoin Virtual Machine is an exciting technological development for the ecosystem this year. “Filecoin has been a storage and retrieval market thus far. But what the FVM can unlock is a multibillion-dollar DeFi economy on top of Filecoin,” he said.

“With complete compatibility with the Ethereum Virtual Machine (EVM), developers can build across the two networks. We could bring up new use cases such as on-chain voting, data-based decentralized autonomous organizations (DAOs), decentralized verifiable computation, etc.”

At the moment, Filecoin storage providers have about one billion dollars in collateral to store deals and grow operations. Via further updates, it is possible to create DeFi instruments that auto-renew deals for tokenholders, creating essentially a “perpetual storage” network.

Going forward, Evran explains that his vision is to see Protocol Labs and Filecoin become a hub for building decentralized technologies. “We helped seed the foundation of IPFS, which is now used by every single major blockchain from Ethereum and Polkadot. But we also want people to come to our community and develop something transformational that’s aligned with our values for Web3.” In spite of the ongoing crypto winter, Filecoin still holds its place among top players with a total market cap of $1.8 billion.