ZX's Ten-Number Inference on Filecoin and DeFi

The conversation at the intersection of Filecoin and DeFi was fascinating. Filecoin is poised to make blockchain more widely used and mainstream, but the volatility of the crypto market can sometimes be daunting for regular users and even miners. Here are some of my thoughts on how developers, entrepreneurs, and financial tools can help in this regard!

1/10 Filecoin is about storage. Its protocol mechanisms encourage participants to provide reliable and useful storage for the network. These mechanisms include requiring collateral when providing capacity, a release cycle for block rewards, and penalties for losing storage.

2/10 We have seen FIL mortgage loans on different platforms to meet the miners' collateral needs. On the one hand, FIL loans solve the miners' collateral needs. On the other hand, loans also help maintain price stability and protect miners from token price fluctuations. This is just the beginning.

3/10 block rewards are released linearly according to a 6-month lock-up period. For miners, with these expected returns, lending is guaranteed. Of course, this is based on the premise that the miners' storage is reliable and stable.

4/10 There are risks in lending, but this risk is manageable. The data on the chain will show the reliability and stability of the data of different miners. Borrowers can set interest rates based on the on-chain data to combat risks. This on-chain information is also very helpful for storage customers, for example, they can choose which miners to provide services for them.

5/10 For blockchain networks to become mainstream, reputation systems and discovery platforms are essential. It is difficult to do business with pseudonymous people who have no past record and may disappear.

6/10 Not only miners need financial services, but storage clients do too. A fairly common misconception is that storage clients must bear the fluctuations in FIL prices when using the Filecoin network for storage. This is not the case.

7/10 Customers and miners can completely price and reach an agreement in fiat currency. Customers convert fiat currency into FIL through miners or third-party services to conduct transactions. In this way, customers will not be exposed to the risk of FIL price fluctuations. Through third-party services or miners directly providing services similar to traditional storage, they may not even know that they are interacting with the blockchain.

8/10 As the Internet matures, standardization of digital storage may emerge. Although cloud storage is a highly customized experience, it is entirely possible that applications such as storage containers will emerge to provide storage that guarantees fixed space and time services. The standardization of storage will bring many new opportunities.

9/10 The Filecoin network is uniquely positioned in the transition from Web2 to Web3. Filecoin will serve both Web2 and Web3 networks for a period of time. Use cases for Filecoin adoption will evolve and develop gradually, like most emerging systems. Web2 may be a larger market for Filecoin in the short term, but Web3 allows us to be more creative.

10/10 Filecoin is a global platform economy powered by blockchain. Financial services can be used to manage risk, provide liquidity, and reduce uncertainty. The rise of financial services on Filecoin may be essential for Filecoin to become a useful storage economy.