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basics/what-is-filecoin/README.md

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This section aims to provide a comprehensive overview of Filecoin to
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developers and serves as a reference that developers can check back on.
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This section offers a detailed overview of Filecoin for developers, serving as a go-to reference for their needs.
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# What is Filecoin
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# Introduction to Filecoin
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Filecoin is a peer-to-peer network that stores files, with built-in economic incentives and cryptography to ensure files are stored reliably over time. In Filecoin, users pay to store their files on storage providers. Storage providers are computers responsible for storing files and proving they have stored them correctly over time. Anyone who wants to store their files or get paid for storing other users’ files can join Filecoin. Available storage, and the price of that storage, are not controlled by any single company. Instead, Filecoin facilitates open markets for storing and retrieving files that anyone can participate in.
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Filecoin is a peer-to-peer network that enables reliable, decentralized file storage through built-in economic incentives and cryptographic proofs. Users pay storage providerscomputers that store and continuously prove file integrity—to securely store their files over time. Anyone can join Filecoin as a user seeking storage or as a provider offering storage services. Storage availability and pricing aren’t controlled by any single entity; instead, Filecoin fosters an open market for file storage and retrieval accessible to all.
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Filecoin is built on top of the same software powering [IPFS protocol](https://docs.ipfs.tech/), which is a peer-to-peer distributed storage network that leverages [content addressing](https://docs.ipfs.tech/concepts/content-addressing/) to allow permanent references to the data, and avoids relying on specific devices or cloud servers for addressing the content. Filecoin is different from IPFS because it has an incentive layer on top to incentivize contents to be reliably stored and accessed.
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Filecoin is built on the same technology as the [IPFS protocol](https://docs.ipfs.tech/). IPFS is a distributed storage network that uses [content addressing](https://docs.ipfs.tech/concepts/content-addressing/) to provide permanent data references without dependency on specific devices or cloud providers. Filecoin differs from IPFS by introducing an incentive layer that promotes reliable storage and consistent access to data.
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Filecoin enables several use cases, from Web3 native NFT and metaverse/game assets storage, incentivized permanent storage, to archiving Web2 datasets as a cheaper alternative to cloud storage. For example, [NFT.Storage](https://nft.storage/) utilizes Filecoin to provide a simple decentralized storage solution for NFT contents and metadata, while [Shoah Foundation](https://sfi.usc.edu/) and [Internet Archive](https://archive.org/) leverages Filecoin to backup their contents. Filecoin also supports a wide range of formats of data, including audio and video files, allowing Web3 platforms such as [Audius](https://audius.co/) and [Huddle01](https://huddle01.com/) to leverage Filecoin as the decentralized storage backend for music streaming and video conferencing.
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Filecoin’s use cases are diverse, ranging from Web3-native NFT storage to metaverse and gaming assets, as well as incentivized, permanent storage. It also offers a cost-effective solution for archiving traditional Web2 datasets, making it a strong alternative to conventional cloud storage.
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For instance, [NFT.Storage](https://nft.storage/) leverages Filecoin for decentralized NFT content and metadata storage. Likewise, organizations like the [Shoah Foundation](https://sfi.usc.edu/) and the [Internet Archive](https://archive.org/) use Filecoin for content preservation and backup.
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Filecoin is compatible with various data types, including audio and video files. This versatility allows Web3 platforms like [Audius](https://audius.co/) and [Huddle01](https://huddle01.com/) to use Filecoin as a decentralized storage backend for music streaming and video conferencing.
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[Was this page helpful?](https://airtable.com/apppq4inOe4gmSSlk/pagoZHC2i1iqgphgl/form?prefill\_Page+URL=https://docs.filecoin.io/basics/what-is-filecoin)
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[Was this page helpful?](https://airtable.com/apppq4inOe4gmSSlk/pagoZHC2i1iqgphgl/form?prefill_Page+URL=https://docs.filecoin.io/basics/what-is-filecoin)

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