Filecoin Whitepaper - Cryptocurrency Operated File Storage Network

Filecoin Whitepaper - Cryptocurrency Operated File Storage Network

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Currency
Filecoin
Symbol
FIL
Abstract
The internet is in the middle of a revolution: centralized proprietary services are being replaced with decentralized open ones; trusted parties replaced with verifiable computation; brittle location addresses replaced with resilient content addresses; inefficient monolithic services replaced with peer-to-peer algorithmic markets. Bitcoin, Ethereum, and other blockchain networks have proven the utility of decentralized transaction ledgers. These public ledgers process sophisticated smart contract applications and transact crypto-assets worth tens of billions of dollars. These systems are the first instances of internet- wide Open Services, where participants form a decentralized network providing useful services for pay, with no central management or trusted parties. IPFS has proven the utility of content-addressing by decentralizing the web itself, serving billions of files used across a global peer-to-peer network. It liberates data from silos, survives network partitions, works offline, routes around censorship, and gives permanence to digital information.

Filecoin is a decentralized storage network that turns cloud storage into an algorithmic market. The market runs on a blockchain with a native protocol token (also called “Filecoin”), which miners earn by providing storage to clients. Conversely, clients spend Filecoin hiring miners to store or distribute data. As with Bitcoin, Filecoin miners compete to mine blocks with sizable rewards, but Filecoin mining power is proportional to active storage, which directly provides a useful service to clients (unlike Bitcoin mining, whose usefulness is limited to maintaining blockchain consensus). This creates a powerful incentive for miners to amass as much storage as they can, and rent it out to clients. The protocol weaves these amassed resources into a self-healing storage network that anybody in the world can rely on. The network achieves robustness by replicating and dispersing content, while automatically detecting and repairing replica failures. Clients can select replication parameters to protect against different threat models. The protocol’s cloud storage network also provides security, as content is encrypted end-to-end at the client, while storage providers do not have access to decryption keys. Filecoin works as an incentive layer on top of IPFS [1], which can provide storage infrastructure for any data. It is especially useful for decentralizing data, building and running distributed applications, and implementing smart contracts.

This work:
  • Introduces the Filecoin Network, gives an overview of the protocol, and walks through several components in detail.
  • Formalizes decentralized storage network (DSN) schemes and their properties, then constructs File- coin as a DSN.
  • Introduces a novel class of proof-of-storage schemes called proof-of-replication, which allows proving that any replica of data is stored in physically independent storage.
  • Introduces a novel useful-work consensus based on sequential proofs-of-replication and storage as a measure of power.
  • Formalizes verifiable markets and constructs two markets, a Storage Market and a Retrieval Market, which govern how data is written to and read from Filecoin, respectively.
  • Discusses use cases, connections to other systems, and how to use the protocol.
Introduction
Filecoin is a protocol token whose blockchain runs on a novel proof, called Proof-of-Spacetime, where blocks are created by miners that are storing data. Filecoin protocol provides a data storage and retrieval service via a network of independent storage providers that does not rely on a single coordinator, where: (1) clients pay to store and retrieve data, (2) Storage Miners earn tokens by offering storage (3) Retrieval Miners earn tokens by serving data.

Elementary Components
The Filecoin protocol builds upon four novel components.
  1. Decentralized Storage Network (DSN): We provide an abstraction for network of independent storage providers to offer storage and retrieval services (in Section 2). Later, we present the Filecoin protocol as an incentivized, auditable and verifiable DSN construction (in Section 4).
  2. Novel Proofs-of-Storage: We present two novel Proofs-of-Storage (in Section 3): (1) Proof-of- Replication allows storage providers to prove that data has been replicated to its own uniquely dedicated physical storage. Enforcing unique physical copies enables a verifier to check that a prover is not deduplicating multiple copies of the data into the same storage space; (2) Proof-of-Spacetime allows storage providers to prove they have stored some data throughout a specified amount of time.
  3. Verifiable Markets: We model storage requests and retrieval requests as orders in two decentralized verifiable markets operated by the Filecoin network (in Section 5). Verifiable markets ensure that payments are performed when a service has been correctly provided. We present the Storage Market and the Retrieval Market where miners and clients can respectively submit storage and retrieval orders.
  4. Useful Proof-of-Work: We show how to construct a useful Proof-of-Work based on Proof-of- Spacetime that can be used in consensus protocols. Miners do not need to spend wasteful computation to mine blocks, but instead must store data in the network.
Protocol Overview
  • The Filecoin protocol is a Decentralized Storage Network construction built on a blockchain and with a native token. Clients spend tokens for storing and retrieving data and miners earn tokens by storing and serving data.
  • The Filecoin DSN handle storage and retrieval requests respectively via two verifiable markets: the Storage Market and the Retrieval Market. Clients and miners set the prices for the services requested and offered and submit their orders to the markets.
  • The markets are operated by the Filecoin network which employs Proof-of-Spacetime and Proof-of- Replication to guarantee that miners have correctly stored the data they committed to store.
  • Finally, miners can participate in the creations of new blocks for the underlining blockchain. The influence of a miner over the next block is proportional to the amount of their storage currently in use in the network.
Smart Contracts
Filecoin provides two basic primitives to the end users: Get and Put. These primitives allow clients to store data and retrieve data from the markets at their preferred price. While the primitives cover the default use cases for Filecoin, we enable for more complex operations to be designed on top of Get and Put by support- ing a deployment of smart contracts. Users can program new fine-grained storage/retrieval requests that we classify as File Contracts as well as generic Smart Contracts. We integrate a Contracts system (based on [18]) and a Bridge system to bring Filecoin storage in other blockchain, and viceversa, to bring other blockchains’ functionalities in Filecoin.

We expect a plethora of smart contracts to exist in the Filecoin ecosystem and we look forward to a community of smart-contract developers.

Contracts in Filecoin
Smart Contracts enable users of Filecoin to write stateful programs that can spend tokens, request stor- age/retrieval of data in the markets and validate storage proofs. Users can interact with the smart contracts by sending transactions to the ledger that trigger function calls in the contract. We extend the Smart Con- tract system to support Filecoin specific operations (e.g. market operations, proof verification).

Filecoin supports contracts specific to data storage, as well as more generic smart contracts:
  • File Contracts: We allow users to program the conditions for which they are offering or providing storage services. There are several examples worth mentioning: (1) contracting miners: clients can specify in advance the miners offering the service without participating in the market, (2) payment strategies: clients can design different reward strategies for the miners, for example a contract can pay the miner incresignly higher through time, another contract can set the price of storage informed by a trusted oracle, (3) ticketing services: a contract could allow a miner to deposit tokens and to pay for storage/retrieval on behalf of their users, (4) more complex operations: clients can create contracts that allow for data update.
  • Smart Contracts: Users can associate programs to their transactions like in other systems (as in Ethereum [18]) which do not directly depend on the use of storage. We foresee applications such as: decentralized naming systems, asset tracking and crowdsale platforms.
Integration with Other Systems
Bridges are tools that aim at connecting different blockchains; while still work in progress, we plan to support cross chain interaction in order to bring the Filecoin storage in other blockchain-based platforms as well as bringing functionalities from other platforms into Filecoin.
  • Filecoin in other platforms: Other blockchain systems such as Bitcoin [19], Zcash [20] and in particular Ethereum [18] and Tezos, allow developers to write smart contracts; however, these platforms provide very little storage capability and at a very high cost. We plan to provide a bridge to bring storage and retrieval support to these platforms. We note that IPFS is already in use by several smart contracts (and protocol tokens) as a way to reference and distribute content. Adding support to Filecoin would allow these systems to guarantee storage of IPFS content in exchange of Filecoin tokens.
  • Other platforms in Filecoin: We plan to provide bridges to connect other blockchain services with Filecoin. For example, integration with Zcash would allow support for sending requests for storing data in privacy.
Future Work
This work presents a clear and cohesive path toward the construction of the Filecoin network; however, we also consider this work to be a starting point for future research on decentralized storage systems. In this section we identify and populate three categories of future work. This includes work that has been completed and merely awaits description and publication, open questions for improving the current protocols, and formalization of the protocol.

Ongoing Work
The following topics represent ongoing work.
  • A specification of the Filecoin state tree in every block.
  • Detailed performance estimates and benchmarks for Filecoin and its components.
  • A full implementable Filecoin protocol specification.
  • A sponsored-retrieval ticketing model where any client C1 can sponsor the download of another client C2 by issuing per-piece bearer-spendable tokens.
  • A Hierarchical Consensus protocol where Filecoin subnets can partition and continue processing trans- actions during temporary or permanent partitions.
  • Incremental blockchain snapshotting using SNARK/STARK
  • Filecoin-in-Ethereum interface contracts and protocols.
  • Blockchain archives and inter-blockchain stamping with Braid.
  • Only post Proofs-of-Spacetime on the blockchain for conflict resolution.
  • Formally prove the realizations of the Filecoin DSN and the novel Proofs-of-Storage.
Acknowledgements
This work is the cumulative effort of multiple individuals within the Protocol Labs team, and would not have been possible without the help, comments, and review of the collaborators and advisors of Protocol Labs. Juan Benet wrote the original Filecoin whitepaper in 2014, laying the groundwork for this work. He and Nicola Greco developed the new protocol and wrote this whitepaper in collaboration with the rest of the team, who provided useful contributions, comments, review and conversations. In particular David “davidad” Dalrymple suggested the orderbook paradigm and other ideas, Matt Zumwalt improved the structure of the paper, Evan Miyazono created the illustrations and finalized the paper, Jeromy Johnson provided insights while designing the protocol, and Steven Allen contributed insightful questions and clarifications. We also thank all of our collaborators and advisor for useful conversations; in particular Andrew Miller and Eli Ben-Sasson.
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