Filecoin's New Narrative: EVM-Compatible Storage Chain, Joining the Public Chain Battle with Smart Contracts

Written by: The Dark Side of the Moon, PANews

After a long wait, the Filecoin EVM (FVM) has finally been officially scheduled for March 14. At that time, the mainnet will gain EVM virtual machine compatibility through the Filecoin nv18 Hygge upgrade, becoming a Layer 0 public chain that integrates data storage, smart contract deployment, and dApp development.

To ensure a smooth launch of the mainnet, the Hyperspace testnet will be opened for developers to test FVM-related features in advance. Additionally, the Filecoin.sol development library will allow testing of smart contract functionalities in Solidity on Filecoin.

The combination of FVM and smart contracts also makes the concept of Data DAOs more feasible. The rights of Data DAOs can be tokenized, and the discovery, storage, and circulation of data value can all be executed on-chain. Coupled with the current popularity of various AI models, FVM can create a composable and modular data layer, forming Data DAOs that meet different use cases.

FVM = Trusted Storage + Smart Contracts

A storage network that does not aspire to be a public chain is not a good EVM.

Drawing on the multi-structure of Ethereum's mainnet and testnets, Filecoin will also launch the Hyperspace testnet, aiming to replace the now-defunct Wallaby EVM-compatible testnet. Combined with the Calibration storage testnet, Filecoin has formed a structure consisting of the mainnet and two testnets, with the mainnet capable of both storage and EVM compatibility.

With EVM compatibility, the current Filecoin has achieved a structure of public chain + storage, and can interoperate with other EVM-compatible chains. Storing smart contract data on Filecoin can improve network speed and reduce gas fees. However, it is important to note that the data itself is still stored off-chain, and verifiable CIDs (Content Identifiers) and storage proofs will be generated, which are recorded on the Filecoin chain and can be written into smart contracts.

Currently, the Hyperspace testnet is open for use and is directly integrated into ChainList, allowing for one-click access via Metamask.

In addition to storing smart contract data, FVM will provide an execution environment for running smart contracts on the Filecoin network. These smart contracts can not only be written in Solidity, but also in other languages like Rust that can be compiled to WASM, changing the current logic of solely storing data.

Smart contracts will truly change the operational logic of on-chain storage:

• Customized Permissions: The advantage of Web 2 storage solutions like AWS lies in the flexible setting of dataset operation permissions, while FVM will enable customized data rights in Web 3. Smart contracts will alter current access and control permissions without hindering the permanent storage of data.

• Data DAO: With highly customizable data rights, Data DAOs will conduct corresponding data monetization operations after permission allocation and can use DAOs to manage and allocate funds.

• Permanent Storage: Previously, permanent storage in FVM required manual renewal before the expiration date, which could realistically only last one to two years for various reasons. However, after FVM, users can utilize smart contracts to achieve automatic renewal, extending the storage period effectively.

• Empowering $FIL: Smart contracts will make it easier to assess the service levels of different node providers. A lending market can be created on-chain based on FIL tokens to improve overall network storage efficiency.

• Introducing EVM Assets: With EVM compatibility, tokens that meet the ERC-20 standard can be bridged to the Filecoin mainnet, and assets on it can also cross-chain to other asset pools, ultimately activating the on-chain storage market.

Once FVM is fully realized, Filecoin will effectively become the most fundamental development facility on-chain, and its complete EVM compatibility will allow direct interaction with any mainstream assets without needing separate setups for storage, but rather directly invoking any required modules from Ethereum's development logic using smart contracts.

Market Size = Developers + Storage Capacity

The launch of FVM will fundamentally change Filecoin's valuation model. Before FVM, the valuation of $FIL was equal to the upper limit of storage capacity, facing competition from numerous storage projects. However, after FVM, the valuation model for FIL will be a dual overlay of storage and public chain.

Currently, Filecoin has a market capitalization of $3 billion, while the global cloud storage revenue in 2021 was around $100 billion, with leading projects like AWS capturing about $35 billion of that share. From a long-term perspective, Filecoin still has significant growth potential.

The arrival of smart contracts intuitively enhances developers' programmability and users' multi-scenario usage, which will directly increase the utility of FIL, ultimately leading to a relative decrease in FIL circulation.

• First, FIL will be burned at a higher rate to meet the equivalent consumption of on-chain storage and computing resources.

• Second, the complexity of smart contracts will also increase the additional load on block space, thus accelerating destruction.

• Finally, following the trend of staking and the need to enhance mainnet security, more FIL will enter locked or lending markets.

Before this, it is essential to start with developers to facilitate their development of new features, allowing users to feel the impact of FVM. After this update, not only can EVM functionalities be directly used, but in addition to the previously mentioned Metamask, FVM can also directly utilize tools and suites like Hardhat and Brownie, with the more significant implication being support for deploying dApps.

According to Filecoin's official roadmap, it is important to clarify that the FEVM will launch in March, while the native EVM, FVM, will go live in mid-year. Therefore, developers can choose between FEVM or FVM based on their technical preferences, both of which can achieve development and deployment.

FEVM and FVM have slight differences; FEVM has better Ethereum compatibility. FEVM allows developers to immediately write smart contracts on the Filecoin blockchain while using all the tools, packages, and languages they are already familiar with. They can quickly port or write smart contracts using the current Solidity and Ethereum development environment. However, it requires paying higher gas fees than FVM, and performance may be compromised.

FVM will be the "native" Filecoin virtual machine, with development tools not as mature as the FEVM system but possessing stronger execution efficiency. Currently, in the 2.1 phase, it is more about testing EVM compatibility, while the subsequent FVM 2.2 phase will give birth to more "native" high-performance dApps.

With this developing capability, the logic of true permanent storage will be rewritten. Specifically, using FVM, uploaders can specify the desired number of replication and expiration dates. The expiration date can even be set to infinite. As long as the uploader still has tokens (FIL) in the contract account, the smart contract will continue to incentivize storage providers to create transactions to extend the storage period.

Storage providers (SP) must meet a certain amount of FIL staking standards to prove their storage capacity. Motivated by profit, SPs will continuously maintain the validity of data in the storage network to acquire FIL tokens. Smart contracts can also execute data verification tasks to ensure that data is stored correctly.

Conclusion

The launch of the FVM testnet marks Filecoin's long-awaited re-entry into the mainstream competitive market, and the combination of storage and public chains opens up new market imagination for the entire storage track, fulfilling Web 3's storage needs with a Web 2 experience.

This also reflects the trend of development in the storage sector. Arweave is expected to become Layer 1 rather than just a data storage network, and the Greenfield storage project initiated by BNB Chain, along with the desire for scalability, will be the focus of Ethereum's future development. These all signify a dual development trend of storage chains and public chains moving towards each other.

Public chains and storage will together become the foundational infrastructure of the entire Web 3 industry, evolving towards a more convergent direction to preemptively address the real needs of billions of people worldwide.

The foundational nature of infrastructure will become the ballast for developers to unleash their imagination in shaping the future. The division between FVM and FEVM, along with the support for the WASM programming paradigm, will also provide more developers with insights on how to leverage traditional app thinking to build high-concurrency and high-capacity Web 3 dApps, with promising explorations in areas like social networking and gaming.