The Flow and Filecoin association on NFTs pulls the price, before correction

The NFTs of the Flow blockchain will benefit from the decentralized backup of Filecoin. This was good news, but the effect on prices quickly wore off.

An NFT token, like any physical asset, must be kept. For a digital asset, the backup is done using a storage space, like any other file. Given the potential value of an NFT, however, this issue is critical.

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In order to support the holders and creators of NFT, Dapper Lab formalized on October 13 a partnership with Filecoin. The latter offers a decentralized backup system. This is supposed to guarantee the availability of data stored on its network.

Secure NFTs with Filecoin

These characteristics are therefore of obvious interest to players in the NFT market such as Dapper Lab. The company is indeed at the forefront in this sector. Its Flow blockchain hosts several large-scale NFT projects.

This week, Dapper Labs therefore announced the signing of an agreement with Filecoin. The latter becomes the official partner of Flow Blockchain. Filecoin will provide storage services to network users.

Through this collaboration, Flow users can issue non-fungible tokens by leveraging Filecoin’s IPFS technology. These tokens can also be stored in a decentralized storage space hosted by Filecoin.

“In content-based addressing, content is no longer accessible from unique locations on the web. It is available from all participating nodes of the IPFS network that have the content you request ”, underlines Filecoin.

Filecoin NFT storage benchmark

The merger with Flow therefore offers a guarantee to NFT holders and issuers that their tokens will be “accessible everywhere in complete security”. It is also a major opportunity for Filecoin to take advantage of the dynamics of the NFT market.

And Filecoin clearly intends to support this trend. The company announces a new program: “Next Step Grants”. Thus, each eligible NFT project on Flow integrating with IPFS or the Filecoin network will receive $ 5,000.

“As the Flow ecosystem grows, Filecoin’s decentralized storage solution will provide future applications built on Flow with an easy way to protect multimedia assets and NFT metadata,” Filecoin highlights. .

These announcements were well received by crypto investors. On October 13 and 14, the prices of FLOW and FIL tokens rose sharply. However, a correction has since taken place. The FIL loses about 8% to $ 65.5. The decline is less brutal for Flow (-2.16%) despite a transaction volume up more than 30%.

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