Background on Filecoin

Filecoin is one of the largest and pioneering DePIN that works as a global marketplace for cloud and storage services. Each Filecoin miner is a service provider on the network and the Filecoin protocol requires each miner to put up Filecoin collateral (pledge) to guarantee their storage reliability. The protocol checks on the reliability of all storage on a daily basis and miners’ collateral may be subject to slashing if they fail such checks.

Miners are constantly looking for collateral to grow and stakers always face the decisions to allocate their capital with different miners to share a percentage of their revenue and rewards. However, this presents a challenge for stakers as they are exposed to the idiosyncratic risks of service providers. Similarly, it is also difficult for miners to consistently attract capital providers on chain.

There are other services that the Filecoin protocol can in theory provide, such as hot storage, retrieval, compute but none of them can be cryptographically proven and these are areas where Parasail can add even more value to the ecosystem.