What is FIL?

FIL is the native token of the Filecoin network. Filecoin is a decentralised data storage and retrieval blockchain built on the Interplanetary File Sharing (IPFS) network. IPFS is a decentralised storage network, and the underlying network that Filecoin is built on. Filecoin is responsible for all transactions regarding storing data on the IPFS network. This means that Filecoin allows for users of the network to store their files in a decentralised manner. Filecoin itself does not store any files, it acts as the ledger for Filecoin transactions and the storage agreements between the network’s users and miners. The consensus mechanism Filecoin uses is called Proof-of-Replication, which is how the network ensures that miners behave honestly. Another consensus mechanism, Proof of Space and Time is also used to ensure that miners continue to store data. Filecoin’s native token, FIL, is used for staking to ensure miners act honestly and to pay miners to store their files on the Filecoin blockchain.