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Filecoin (FIL) has made significant upgrades to its protocol that will enable developers to build apps with privacy and better security. The development was revealed in an update shared by Filecoin’s official X handle to members of the community.
Filecoin EVM upgrade brings enhanced security
According to Filecoin, the platform has upgraded the Filecoin Ethereum Virtual Machine (FEVM) with support for point addition, pairing and checks. In order to improve the security and efficiency of the system, the BLS12-381 curve allows for scalar multiplication.
Notably, the point addition and scalar multiplication would serve as core building blocks for signing and verifying signatures on the platform. The upgrade implies that Filecoin now supports threshold signatures, zk-proofs and secure identity systems.
The threshold signatures allow multiple parties to jointly sign a transaction without compromising their individual keys. Users will be better able to preserve their privacy even as the platform supports scalable transactions.
All these features will allow developers to build apps with secure identity features for decentralized finance (DeFi) and decentralized storage authentication.
FIL price reacts to upgrade with volatility
The announcement triggered a market reaction as FIL — Filecoin — climbed from $2.48 to $2.56 on the crypto market. As of press time, there has been a slight correction, and it now changes hands at $2.50, a 0.45% decline in the last 24 hours.
Market analysis showed that investors went for profit-taking after the breakout, hence, the decline in trading volume, which is down by 12.47% to $155.49 million.
Filecoin could likely use this upgrade to reverse its price outlook and begin a rebound journey to its 2022 highs. To achieve this, however, Filecoin investors need to rekindle their interest in the project and avoid dumping for profit.
Filecoin also needs to show relevance so users understand its versatility beyond just being a storage protocol.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team