# The technical integration of SFT Protocol and Filecoin software and hardware

Currently Filecoin is the first public chain network supported by the SFT protocol. The SFT protocol will start with Filecoin and gradually expand its development in liquidity support, DeFi applications, asset transactions, and node services.

The SFT protocol focuses on the integration of underlying technological innovation and the construction of basic hardware facilities, especially the development of the Filecoin public chain and the construction of large-scale hardware infrastructure, which will promote the construction of Filecoin public chain nodes, security, and ecological development. The SFT protocol will also be extended to the physical field, providing users with safe and trustworthy Blockchain infrastructure services such as Filecoin, deeply integrating the digital economy with the real economy, empowering a comprehensive upgrade of the real economy, and allowing all walks of life to find new development space .

**6.1 The SFT protocol is compatible with mining pool hardware service providers**

The compatibility of the SFT protocol and hardware miners jointly promotes the infrastructure construction and development of the Filecoin public chain. As we all know, Fil mining pledge has an ultra-long pledge period of 540 days. Although the FIL public chain community is committed to making the network and its economy open to all participants, such as the minimum hardware requirements and the learning required to set up nodes The cost still discourages many potential storage providers and prevents many users from using hardware mining equipment.

In the initial stage of the SFT protocol, focus on the integration and development of the Filecoin public chain, solve the liquidity of the FIL token pledge, build decentralized node mining, and mint asset tokens SFT to form such as liquidity mining pools and computing power Perpetual trading and other applications, pledge FIL tokens, mint SFT, realize liquidity mining, Farm, asset trading, asset lending and other functions based on the SFT protocol.

**6.2 The SFT protocol fully participates in the FVM ecology.**

The Filecoin network is a robust platform that stores and provides access to NFTs, public datasets, Web3 and Metaverse resources, etc. in a verifiable manner. Smart contracts (FVM) can create smart and dynamic storage solutions that are difficult to achieve in the era of Web2 technology. The SFT protocol will cooperate with FVM to build decentralized applications, distributed node services, fully contracted protocol management, approval, etc. For example:

6.2.1 Distributed computing based on data stored on Filecoin

Do calculations where the data is stored without moving it first

6.2.2 Crowdfunding Dataset Preservation Plan

For example, anyone can fund the storage of some data that is important to society, such as crime data or data related to environmental warming

&#x20;6.2.3 Smart Storage Market

For example, dynamically adjust the storage rate according to different time of day, replication level, and accessibility in a certain region

6.2.4 Generational storage and sustainable hosting

Such as storing data so that it can be used by generations

6.2.5 Data DAO or tokenized dataset

Such as modeling the value of data as a token and forming a DAO to coordinate and trade calculations performed on it.

6.2.6 Locally stored NFTs

Such as co-locating NFT content with registration records that track NFTs

6.2.7 Time-locked data retrieval

Such as unlocking related data sets only after the company's records are made public

**6.3 Various financial derivatives schemes of SFT protocol in Filecoin**

The SFT protocol will further build financial derivatives solutions in the Filecoin ecosystem: such as computing power lending, liquidity mining, option trading, pledge, lending, Swap transactions, cross-chain transactions, etc.

The high scalability, openness and financial attributes of the SFT protocol will support the development of the FIL ecosystem, make full use of FVM, and support hardware service provider computer room networks and mining pool protocols. The SFT protocol promotes multiple participation modes of hardware service providers, packaging, revenue distribution, unlocking management and verification nodes, etc., to verify and monitor contract data. As a way to share liquidity, applications based on FVM are deployed to other chains (such as Ethereum, BSC, Solana, etc.).

**6.4 Vision: SFT protocol participates in the construction of Web3.0 and Metaverse**

As there will be more and more NFT digital assets in the Metaverse, IPFS & Interplanetary File System can be used as the underlying storage of data. In recent years, tens of billions of files have been stored on the IPFS network, and in the context of downtime events among major cloud storage giants, the advantages of safer, faster, and more efficient IPFS have become more prominent. Whether it is Web3.0 or NFT, or the currently popular Metaverse, Filecoin distributed storage is inseparable from the infrastructure.

The SFT protocol lays out the future development of Web3.0 and Metaverse. The edge computing, distributed storage, edge CDN services, etc. built in the SFT protocol will help the Filcoin public chain to use and develop in the Metaverse. Storage calls will consume the resources of the computer room. For equipment resources, the SFT protocol will open multiple interfaces for third parties, and the overall cost model is denominated in DAO. The system will calculate the computing resources and storage resources paid by the node when calling.

**6.5 Hardware infrastructure under construction**

The SFT protocol offline and physical hardware service providers jointly promote the construction of hardware infrastructure. Currently, the construction of computer rooms and basic hardware facilities in the United States, Singapore, Vietnam, Hong Kong, Malaysia and other places will be carried out in Europe, North America, Canada, In Japan and other places, the construction of new infrastructure has been carried out one after another.

Different from ordinary cooperation models, the infrastructure under the SFT protocol is fully managed by the protocol and audited by a trusted third party.
