Is Filecoin Set for Mass Adoption in 2024 With the Rise of AI?
Experts believe that the rising data storage requirementss of Artificial Intelligence will cause many AI companies to shift to decentralized file storage solutions like Filecoin or be priced out of the market before they achieve any substantial breakthroughs.
This is because large datasets form the bedrock of AI, and the increasing size of these datasets will cause mounting pressure on the finances of AI companies looking to store the data.
As AI expands and becomes more powerful, the data driving the algorithms will only get bigger.
Keeping these datasets safe is crucial to the progress of AI and keeping them away from centralized entities is even more vital to the continued development of AI.
Fortunately, Filecoin provides one of the cheapest solutions to store data online securely, and many analysts are suggesting that the rise of AI will help Filecoin reach mass adoption in 2024.
Filecoin: Big Storage for Big AI Companies Requiring Computation
At the core of AI lies big data. These datasets need to be stored somewhere so artificial intelligence algorithms can be trained, allowing them to become more sophisticated.
The big data needs behind AI will continuously require extensive computing power and data storage solutions. Without the data and the computational capacity needed to process it, AI systems cannot progress.
With datasets lying at the heart of the AI sector, the importance of storing them correctly is paramount to the industry’s progression.
Unfortunately, these datasets are growing daily, increasing the costs for AI companies.
For example, ChatGPT-4 is trained on an enormous 1 PiB of data. This results in an enormous cost for storing the data for the AI to be trained. Of course, with OpenAI being valued at $80 billion, they won’t struggle to pay to store the data. However, the thousands of smaller AI companies don’t enjoy this luxury.
Eventually, the cost of just storing the datasets will cause the smaller AI companies to go out of business as they’re expected to struggle to keep up with the increasing payments of hosting the data. As a result, most startups are likely to run out of cash before making any major developmental breakthroughs due to the scale of computation power and data storage required.
Storage is just one aspect of the dilemma. AI also requires vast amounts of computational resources to analyze the data, adding further to the costs associated with pushing the industry forward.
Fortunately, Filecoin provides a cost-effective solution to both problems.
The launch of the FIlecoin Virtual Machine was the first step in expanding Filecoin’s use case from storage to computation. Eventually, Filecoin can facilitate computing over data, enabling large-scale computation over the network’s data.
Decentralization Adds Another Dimension
Another factor to consider for AI is its need for decentralization. The datasets that AI algorithms rely on need to be stored securely, with zero point of failure.
This is because the developmental progress would halt if the storage providers decide to restrict access to the datasets. For example, most datasets are currently being stored on Amazon S3. However, if Amazon decided to limit access to any datasets for a breach of terms or governmental interjection, the AI would cease to continue its learning — halting all development.
In addition, if Amazon S3 decided to increase its cost, it could force many AI companies to go out of business.
As a result, decentralization is a vital requirement to secure the future of AI development.
Fortunately, Filecoin provides a solution to all the problems explored above. The decentralized peer-to-peer storage solution is cost-effective, secure, and decentralized.
However, one problem with Filecoin and mass adoption is the Storage Providers’ Dilemma.
With Storage Providers requiring increasing amounts of $FIL to expand storage solutions, a solution is necessary to ensure they have access to $FIL liquidity.
That’s where FILLiquid steps in.
We’ve created a decentralized lending market that helps Storage Providers take $FIL loans without requiring crypto or fiat collateral. It also allows $FIL token holders to earn a passive income by lending $FIL.
We’re proud to do our little part in helping the Filecoin network expand. Together, we aim to ensure the continued expansion of Filecoin to help facilitate big data needs for AI.
