Decentralized storage platform Filecoin has introduced the Filecoin Virtual Machine (FVM), which enables it to handle smart contracts and opens up the world of decentralized apps, NFTs, and liquid staking, releasing the enormous potential of an open data economy, among other things.
The intention is for this to encourage the development of new tools on the network, facilitate token trade, encourage the development of decentralized social media, and eventually develop into its own robust ecosystem.
This launch represents a significant step forward in the development of smart contracts, especially given the growth of the crypto and Web 3.0 ecosystems.
The FVM tool, which is only disseminated on the network, will enable anyone to interact with Filecoin's state, including transactions defining what and who maintains data on Filecoin.
Although there is no direct interaction between the FVM and the data saved on the Filecoin network, it may manage where and how data is kept, updated, and maintained, giving rise to ideas like DataDAOs and programmable storage markets.
Juan Benet, the CEO and creator of Protocol Labs, said:
"FVM is a huge step forward for blockchains and Web3 – it enables developers to design new types of apps, bringing the advantages of smart contracts to massive scale data."
The fundamental pieces of the Filecoin economy-content-addressed data storage, retrieval, and computing at scale - can be connected, improved, and innovated around using FVM, which allows developers to construct and deploy custom code to run on the Filecoin blockchain. In terms of dispersed storage capacity, this represents a substantial advancement.
The Filecoin storage network's programmable controller can be thought of as the FVM protocol, and the two systems were created to work together.
The engineers and product designers of Filecoin will be able to communicate with other blockchain protocols that are EVM compatible thanks to the protocol's interoperability with that technology. As a result, newly registered Filecoin users will have access to a number of potential useful apps.
Every smart contract hub desires to have a connection to and from Ethereum, which is regarded as the origin of all Layer 1 and 2 smart contracts and has billions of dollars in liquidity. This is important to keep in mind.