- Filecoin (FIL-USD) is partnering with Lockheed Martin (NYSE:LMT) to create a space-accessible file-sharing network
- The two companies say the collaboration will further the push toward a “space economy”
- Filecoin’s FIL crypto is trading at particularly high volumes in wake of the announcement
The World Economic Forum’s (WEF) annual meeting in Davos, Switzerland, is turning out to be a big one for blockchain. But, more surprisingly, it’s turning into a big meeting for space technology. These two fledgling sectors are bridging together this week thanks to two of the largest players in each respective space. Blockchain player Filecoin (FIL-USD) and defense contractor Lockheed Martin (NYSE:LMT) are teaming up on a project that seeks to improve file sharing in remote locations.
While typically catering more to traditional finance, this year’s WEF meeting sees attendees talking all things blockchain. Talks of crypto regulations, remittances and central bank digital currencies (CBDCs) are filling the Swiss air. Meanwhile, it looks like projects are taking the event as an opportunity to unveil new, ambitious projects.
Filecoin’s announcement is one of the most interesting thus far. The Filecoin network focuses on storage; its unique, decentralized model of storing files has made it one of the most notable crypto projects in recent years. The network allows users to lend their unused hard drive space to others, where they can store their data. A crypto incentive model rewards storage lenders with the FIL crypto, allowing users to generate passive income through their goodwill. And now, it is looking to take this model to a new frontier: space.
All eyes are on Filecoin this week as it announces its Lockheed Martin partnership in Davos. The two companies are teaming up to develop a mission demonstrating Filecoin’s Interplanetary File System (IPFS) away from Earth.
Filecoin Partners With Lockheed Martin for Space File-Sharing Project
IPFS is a separate but closely related protocol to the Filecoin protocol. It allows users to store and share data across the distributed web just as Filecoin’s flagship protocol does. However, IPFS is a broader and more future-forward protocol. It focuses on allowing users to quickly fetch data from even the most remote locations. According to today’s announcement, Filecoin will work with Lockheed Martin to operate an IPFS node in space.
The two companies will work together to launch a satellite into space in order to prove the power of the protocol in places more remote than anywhere on Earth. The goal of the project is not just to show that IPFS is a solid choice for storing and fetching files in the quickest way possible. It is to demonstrate a use case for the protocol in the coming economy of space. As Marta Belcher of Protocol Labs — developer of Filecoin — puts it, the IPFS protocol was designed from the very beginning to work in space, contrary to other communications tech vying for the same goal. Lockheed Martin’s Joe Landon says the partnership is a move to get ahead of the space economy before it fully emerges.
The project is certainly one of the most far out announcements at Davos. Filecoin is the largest network offering its services. Lockheed Martin’s dominance in the defense industry is well-known. The giants will do well to show off the many emerging use cases of blockchain technology. Moreover, if successful, the implications for IPFS are far reaching.
Landon gave an example of satellite refueling to demonstrate its role in the galactic future. “In the future, we’ll have one satellite refueling another,” he says. “That’s a transaction that takes place entirely in space that doesn’t really have a nexus back on Earth.” Of course, a decentralized blockchain network will be one of the most sensical ways to record such a transaction.
As the news ripples over the market, the FIL crypto is trading down by about 2%. Volume, on the other hand, is much higher than is typical. Over $573 million in FIL is swapping hands — a 120% increase over yesterday.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.