What Exactly is Filecoin's Upcoming Virtual Machine (FVM)?

Previously, Filecoin officially announced that it would launch the Filecoin Virtual Machine (FVM) to introduce the programmability of smart contracts to the Filecoin network. In addition, FVM will be the first to be compatible with EVM (Ethereum Virtual Machine), so that Solidity developers can deploy smart contracts on Filecoin faster.

Once the Filecoin network has its own virtual machine FVM, it will have very complete smart contract functions. So what role does FVM play in the Filecoin network?

1. Build the underlying business through smart contracts

For example: build an automated credit score system for storage providers, then build a distributed automatic storage matching market based on credit scores and solve the data verification problem of data storage based on the automatic storage matching market.

2. Improve the upgrades efficiency of Filecoin network

Before the smart contract exists, Filecoin, the incentive layer of IPFS, requires network upgrades to establish its underlying business or functions, that is, which means new versions of Lotus or Venus are required.

But with smart contracts, these functions can be easily implemented. Just like building blocks, the functions of the Filecoin network can be added freely, and different solutions can be tested through the competition so that the network can gradually evolve after tests. That is to say, the smart contract solves the trouble of Filecoin function upgrade, and the network function enhancement does not require network upgrades, which is a great benefit brought by the smart contract.

3. All data-related applications can be implemented in the Filecoin

Most NFTs are currently stored in the IPFS network, so an IPFS-based NFT platform will be a completely unified platform. If the goal of FVM can be achieved, Filecoin will truly be able to support more open and powerful smart contracts.

By then, developers can build their own applications on Filecoin smart contracts, such as DeFi, NFT, GameFi, Metaverse, and decentralized Dapps. So that the prosperity and development of the Filecoin ecosystem can be greatly promoted and Filecoin can become the basic storage layer and core infrastructure of Web3.0.

IPFS/Filecoin storage is only the first step and is the most important basic project for blockchain data. The ultimate goal is to build a new generation of Internet transmission protocols and reshape the Internet!