Data between seeds could also be chargeable but at a lower level than the end user - allowing the node to 'seed' the content and collect the bandwidth.
This incentives the network to sustain itself and get rewarded for increasing availability.
ISPs and/or even access points like Cafes and Hotels can seed for themselves getting the bandwidth $$
My understanding is Eth blockchain could also allow part of the 'coins' be given back to content creators? though I also understand there may be scaling issues.
I doubt it. How do you prove (to a smart contract) that you're the creator of the content and not just the first person to put the content on IPFS?
What advantage does this have over S3 (0.0245 per GB/month) or OVH ($0.0112 per GB/month)?
It's much harder to censor, more permanent (content doesn't go away if your server goes down), etc.
> And why wouldn't someone just use AWS and run their own node to pin it?
Because it's more expensive and more hassle than just using a third party service, of course.
Instead of wasting electricity and resources to generate 'consensus based artificial scarcity' fiat money like BTC, monetize digital assets available in the net with cryptoderivatives.
Terminology question: Are all 'cryptosecurities' going to be called coins or currency? Technically Filecoin is commodity derivative or asset-backed security.
> Instead of wasting electricity and resources to generate 'consensus fiat artificial scarcity' based money like BTC. Monetize digital assets available in the net with derivatives.
... or you could just not do that, and save even more resources.
This is BitTorrent with cryptocurrency micropayments bolted on the side. It's literally an "x but with Bitcoin" idea.
Internet has created large pool of digital commodities to be sold: file storage, computing power, network bandwidth, regional caching and content delivery. Wrapping them up into financial instruments under common protocols is the way to go.
As a buyer of storage space, if you need storage, isn't it always going to be cheaper, faster and more convenient to use your own hard disks or a specialised service like S3?
Will people actually have an incentive to use Filecoin as a storage service instead of S3? If they don't, then the coin has no advantages over Bitcoin.
As I see it peer-to-peer storage could force everyone to compete globally on price and compete directly for the data, not the customers. Kind of like automatically choosing during upload the cheapest offering available on the global market at any given time, except that the players themselves are aware of the mechanism and know they are competing solely on efficiency, making them pursue efficiency. Eventually this could even put significant amount of storage into the countries with cheap electricity, labor and internet, making storage costs lower than otherwise possible.
Judging by the title, it's also for web pages. That's also part of the vision for Ethereum's Swarm.