2024 is a critical year for Filecoin, with significant progress in Filecoin Virtual Machine (FVM), storage, retrieval, and computing. In this article, we will review the key milestones in 2024 and examine the main growth drivers for Filecoin’s development into 2025.

Source: Filecoin’s road to success in 2024 (https://filecointldr. io/article/charting-success-for-filecoin-2024)

2024 Year in Review

In our earlier article "Charting Success for Filecoin in 2024" (https://filecointldr.io/article/charting-success-for-filecoin-2024), we listed the ecological aspects of 2024 Three key priorities:

Accelerating paid transactions: Promoting Filecoin Paid services (storage, retrieval, computing) on ​​the Internet create cash flow for service providers and help support more sustainable hardware financing beyond token incentives.

Promote on-chain activity growth: Increase on-chain activity through programmable services, DeFi, and new use cases.

Become indispensable: Make Filecoin an integral part of other projects and businesses.

These priorities are not mutually exclusive, they overlap, indicating that the Filecoin ecosystem is becoming increasingly valuable

Value. So, how are we doing on these priorities in 2024?

1. Accelerate paid transactions

Paid transactions are an ecological-level indicator that reflects The number of paid services in the Filecoin network. FilecoinTLDR currentlyThis metric is being tracked here (https://filecointldr.io/paid-deals-dashboard).

In 2024, Filecoin has made significant progress in accelerating paid transactions by reducing the friction for enterprises to enter the ecosystem, mainly including the development of Proof of Data Ownership (PDP) and The emergence of Layer2 solutions.

1. Use PDP to achieve efficient hot storage

Proof of Data Ownership (PDP) is expected to be Launched in Q1 2025, it introduces a new proof primitive to the Filecoin network, the first major proof development since Proof of Replication (PoRep) and Proof of Spacetime (PoSt). Unlike PoRep, which specializes in cold storage via encapsulated sectors, PDP is designed for "hot data," i.e., data that needs to be retrieved quickly and frequently.

This new proof type enables cost-effective "cache" storage on Filecoin without the need for encapsulation and unwrapping, allowing for fast data loading and retrieval. PDP opens the door to a new class of storage providers focused on hot storage and fast retrieval, benefiting companies such as Basin, Akave and Storacha.

2. Extend Filecoin through Layer2

In 2024, we see an increase in Layer 2 solutions built on Filecoin (see our previous article "Layer 2 State on Filecoin") (https://filecointldr.io/article/state-of-l2s -on-filecoin). L2s like Basin, Akave, and Storacha can scale horizontally and vertically with secure, customizable subnets. These L2s strengthen Filecoin by unlocking new use cases: including managing data-intensive workloads, supporting artificial intelligence and unstructured data, supporting gaming and privacy-focused applications, all of which create more opportunities for paid transactions.

2. Promote the growth of on-chain activities

Filecoin accelerates on-chain activities through FVM Obtained significantWith progress, this has stimulated the growth of the DeFi economy. The proposed launch of Filecoin Web Services (FWS) and Filecoin-backed stablecoins will further boost this momentum.

Source: Defillama (as of December 16, 2024) (https:/ /defillama.com/chain/Filecoin?pool2=false&govtokens=false&doublecounted=false&liquidstaking=true&staking=true¤cy=FIL)

1.DeFi Milestone

As of December 16, 2024, more than 4,700 independent contracts have been deployed on FVM (https://dashboard. starboard.ventures/fvm), facilitating more than 3 million transactions. The average net deposit of DeFi activities on FVM (https://fvm.starboard.ventures/explorer/leaderboard) exceeds 30 million FIL (approximately US$200 million), mainly driven by seed staking, liquidity staking and DEX, of which GLIF accounts for 62%, followed by FilFi (10%) and SFT protocol (9%). Net borrowing averaged 26 million FIL ($173 million), demonstrating the strong growth of the Filecoin DeFi ecosystem.

2. FIL guaranteed stable currency of Filecoin ecosystem

USDFC is a FIL-backed stablecoin launched by Secured Finance in the fourth quarter of 2024, aiming to solve key challenges in the Filecoin ecosystem. It brings stability, reduces volatility and enhances a store of value to a network that previously lacked stablecoin options, similar to what DAI did for Ethereum.

By allowing FIL holders and SPs to pledge their assets with USD, USDFC can help pay for operating costs without selling FIL, thereby preserving asset value and Network support. It also provides liquidity for stablecoins backed by FILTo improve the liquidity of the lending market, thereby promoting more efficient capital flows within the Filecoin ecosystem.

3. Becoming indispensable

DePIN has become famous, and Filecoin has become indispensable through artificial intelligence Its position has been strengthened by key partnerships with computing projects. At the same time, on-chain archiving is gaining widespread recognition through major on-ramp partnerships.

Solana co-founder Anatoly (https://x.com/aeyakovenko/status/1758737369220681895) said: "Thank you Filecoin for creating an excellent Decentralized archive layer ”

1. On-Ramp worth paying attention to in 2024

At this year's Solana Breakpoint (https://www.youtube.com/watch?v=gcmmQMkrqS4), Filecoin founder Juan Benet emphasized Filecoin's zero-knowledge (ZK) storage How to secure the entire Solana ledger.

Similarly, the Cardano application (https://fil.org/blog/blockfrost-and-filecoin-foundation-collaborate-to-enhance-the-decentralization -of-cardano-data) now has the opportunity to enhance data redundancy and decentralization through Blockfrost’s integration with Filecoin.

Integration of SingularityNET (https://singularitynet.io/singularitynet-integrates-filecoin-decentralized-storage-using-lighthouse/) and Filecoin (via Lighthouse) Highlights the growing need for scalable and cost-effective storage in an AI-driven era where efficiently managing massive amounts of data is critical.

These meaningful partnerships help showcase Filecoin as a key player in the world of chained archives and artificial intelligence.

Source: Filecoin (X) (https: //x.com/Filecoin/status/1831629192133218683)

2. Computing and Artificial Intelligence Partnership

This year, Filecoin has positioned itself as a key player in the growing field of decentralized artificial intelligence. Projects such as Ramo (network participation), Bagel (AI and cryptography research), Swan Chain (AI training and development), and Lilypad (AI distributed computing) were released in the ecosystem, highlighting Filecoin’s growing role in promoting artificial intelligence innovation. Role (https://filecointldr.io/article/from-storage-to-intelligence-exploring-filecoins-role-in-the-ai-ecosystem).

2024 Filecoin Challenge

Although huge achievements have been made progress, but we are also aware of some challenges facing the community. Although Web3 products are still in their early stages, forming a reliable alternative to the centralized cloud is a huge challenge.

Product-market fit:

Limited searchability and high cost (driven by data Obstacles such as replication drivers pose challenges to the efficiency of the Filecoin network.

Transactions need to be made directly on the Filecoin network through the use of stablecoins or flexible payment options to make payments more convenient.

Increasing visibility into storage processes and leveraging user data can help refine strategy and improve performance in key areas.

Building a sustainable economic model + a stronger economic cycle:

Think of Filecoin as an island economy (https:/ /youtu.be/kSE1gZVMXHk?feature=shared&t=479), highlighting its focus on accumulating value by exporting goods and services while keeping as much value as possible within the network by minimizing outflows.

Source: Realizing the Filecoin Vision (Part 2) - Juan Benet (https: //www.youtube.com/watch?v=kSE1gZVMXHk&t=479s)

The key challenge is to reduce external capital outflows while finding ways to promote exports and capture ecological changes. A multi-demand approach.

Ensuring transactions remain on-chain is also critical to strengthening this economic model and creating a stronger economic cycle.

Filecoin 2025 Outlook

Looking forward to 2025, the development of Filecoin continues. Here are three key themes that can drive the transformational development of networks while addressing the 2024 challenges mentioned above.

Blockworks Research（https://x.com/blockworksres/status/1868725847894724964）

means: "Filecoin is at an inflection point."

1. Increase Filecoin speed by 450 times through Fast Finality (F3)

Fast Finality (F3) is one of the most impactful upgrades to the Filecoin consensus layer since the launch of the Filecoin mainnet. By drastically reducing transaction completion time, F3 overcomes a key limitation of the network’s original consensus mechanism. This upgrade is planned to be launched on the mainnet in the first quarter of 2025 (https://medium.com/@filoz/finality-unveiled-passive-testing-to-mainnet-launch-of-f3-fast-finality-03e09bc68de5).

Comparison between old and new:

Before F3, Filecoin’s consensus mechanism ensured a safe zone Block verification, but takes 7.5 hours (900 epochs) to complete transactions, which is too slow for applications such as smart contracts or cross-chain bridging.

With F3, transactions can be completed efficiently within minutes, an improvement of 450 times.

What it means for Filecoin:

Faster speed And a better user experience: transactions are completed within minutes, supporting low-latency applications and eliminating previously long waits.

Extended use cases and accessibility: L2 subnets such as Interstellar Consensus (IPC), efficient smart contracts and decentralized applications, for interoperability with other chains Interoperable blockchain bridge.

Ultimately, this allows Filecoin to increase its usability across a wider range of applications.

2. Beyond storage through FWS

Filecoin Web Services (FWS) (https://filecointldr.io/article/filecoin-web-services-the-future-of-decentralized-cloud-services/) is a key concept that emerged this year and represents Filecoin’s strategic shift expands its scope from primarily a decentralized storage network to the broader blockchain-based cloud services market. This diversification can attract a wider range of users and use cases, potentially creating a more positive economic cycle within the network. Here are the reasons why FWS deserves attention:

Strengthening Filecoin’s competitive advantage: FWS will introduce programmatic SLAFeatures such as (automatically executing service agreements through smart contracts, ensuring clear performance expectations and penalties) and Verifiable Proof (providing cryptographic evidence of service delivery, allowing users to independently verify service execution).

Extend Filecoin capabilities: Go beyond Proof of Replication (PoRep) by adding Proof of Data Ownership (PDP), enabling powerful hot storage use cases. PDP will help improve data retrieval, a key factor in achieving product-market fit that has been widely discussed in the Filecoin community this year.

Positioning Filecoin as the leading platform in decentralized networks: FWS will facilitate the integration of multiple networks and protocols to provide storage, computing, bandwidth and other services Creating a cohesive market that will make Filecoin a key player in the development of the decentralized web.

FWS is currently a concept under development and a new storage service featuring PDP (v0) is currently being developed. Following this milestone, development of the FWS market will begin, with launch expected in the first quarter of 2025.

3. Unlocking Filecoin’s new value stream

As a Layer1 blockchain, Filecoin mainly Gas fees are burned to generate revenue (occurring when chain resources are used or fail). However, relying on gas combustion as the main source of revenue is not scalable, and more importantly, it will increase operating expenses and service costs.

The sustainable approach is to return value to the Filecoin economy by using the services of the FWS market, thereby forming a more scalable and balanced income model. Suggested value accumulation mechanisms include:

FWS fee: commission (%) based on market trading volume.

Service fee: charged when the user uses the service or the supplier provides the service.

SLA Penalties: Penalties imposed on service providers that fail to meet agreed performance standards

This change is expected to bring a more stable and diversified revenue stream, ensuring that Filecoin remains inContinued relevance and profitability in an evolving market.

Final Thoughts

As the value of data grows, we look forward to privacy-preserving machine learning, Advances in data-driven business models and the increasingly important role of artificial intelligence agents in unlocking the potential of decentralized storage.

Looking forward to 2025, with the upcoming fast end (F3) on the mainnet and the continued development of Filecoin network services, Filecoin will shape the decentralized ecological data and the future of artificial intelligence. We hope to see these advancements position Filecoin beyond storage and unlock a sustainable economic model through new revenue streams generated by FWS.