Vividthree Holdings Ltd. announced it has formed an exclusive, two-year joint development partnership with JVS Management Holding Pte. Ltd. for Filecoin mining, a process where participants in the blockchain network contribute storage capacity to be used in deals with clients looking to store data. Filecoin is a peer-to-peer, blockchain network that stores data files on the Internet, with built-in economic incentives to ensure files are stored reliably over time.

Filecoin allows large amounts of data to be stored at hypercompetitive prices, and has a native cryptocurrency, FIL. In Filecoin, storage miners earn units of FIL to store files for clients. Deals are the core function of the network, and consist of either storage deals, which are agreements between clients and storage miners to store data in the network, or retrieval deals, which refer to agreements between clients and retrieval miners to extract data stored in the network.

Unlike cloud storage solution providers, Filecoin offers data storage services in a decentralised form and at much lower costs, which is anticipated to spur a boom in demand in coming years, competing with incumbent cloud storage solutions. Both Vividthree and JVS will jointly raise capital for the Filecoin Mining project, with Vividthree contributing developmental costs. JVS will carry out the day-to-day administration of Filecoin mining, including acquiring, operating and maintaining the specialised computer equipment for the Digital Asset Project.

The Group also has an exclusive option - valid for two years - to acquire 51% of JVS on a valuation of up to S$6 million from its three existing shareholders. This acquisition is subject to SGX requirements as well as approvals from Vividthree's Board of Directors and shareholders.