Siacoin

Siacoin is a decentralized cloud storage platform that leverages blockchain technology to create a data storage marketplace. 

Overview

Siacoin is a cryptocurrency used to pay for storage on the Sia network. Sia is an Ethereum-based blockchain network that allows any computer running it to rent out unused hard drive space to users looking to store files. It has a network capacity of over 2 petabytes (2,256 terabytes), with approximately 333 node operators actively securing the network. It currently stores about 766 terabytes of files. 

Sia positions itself as the ‘AirBnB for hard drives.’ File storage is made possible by software and a distributed network of computers. The files stored are sliced into 30 tiny pieces to accommodate only a few on each hard drive. The files are also encrypted and safe from unauthorized access. Each piece of the file is uploaded to a unique host for redundancy.

The Sia blockchain is secured using a proof-of-work consensus algorithm. This means miners compete among each other to add new blocks to the blockchain and a majority must confirm a record for it to be posted. No single node can access these files because they are scattered across several nodes. 

SiaCoin’s value comes from its network utility. It has a network capacity of 6.87pb. Siacoin is the only form of payment that can be spent by users of the Sia blockchain when they enter renter or host agreements. Renters must buy and sell Siacoin to save files. And hosts must receive and sell siacoin to be compensated for the resources they use. 

The network has another token, Siafunds. It facilitates the growth of the Sia network by incentivizing more users to join. siafunds will only ever be 10,000 tokens. The tokens entitle holders to a 3.9% share of each funding source after a contract is completed. This includes renter fees, bandwidth costs and host collateral. The value of Siafunds rises and falls with the quantity, value and size of contracts on Sia. 

Product Details

Siacoin offers complete privacy to its users. Files that are stored and transferred are encrypted and then distributed across a decentralized network. You own your data and control your private encryption keys. Unlike other cloud storages, no third party can access your files when it comes to Sia. Even if an unknown person were able to access the renter’s key, files still remain private.

Siacoin is affordable. Siacoin claims to cost way less compared to other cloud storages. The network takes advantage of this feature to present itself as a better choice when it comes to selecting the right coin to buy. Storing 1TB of files on Sia costs about $1-2 per month. 

Sia distributes and stores redundant file segments on nodes across the globe. It claims to eliminate any single point of failure and ensures uptime that rivals traditional cloud storage providers. The software uses a technology called erasure coding. This builds in redundancies to ensure a user can always access their files even if 20-30 hosts are offline.

Siacoin creates a decentralized marketspace where storage providers compete for your business. This decentralized marketspace is created using the Sia blockchain. Prices are reduced to the lowest because storage providers compete for your business. Renters pay using Siacoin, which can also be mined and traded. Its decentralized nature makes it able to offer competitive rates.

Siacoin is open source with contributions from leading software engineers. It receives contributions from a community of developers and leading software engineers building innovative applications on the Sia API.  There is a whole network of people steadily innovating and making changes to the network and applications.

Siacoin has a secure and high network capacity. File storage on the network is high and very secure. With network capacity of over two petabytes, the network prides itself as being able to compete with existing storage solutions. Renters are further protected from would-be malicious hosts by requiring proof of storage. This compels hosts to prove they are online and properly preserving all of the renter’s data.

Siacoin’s agreements and transactions are enforced with smart contracts. Renters pay hosts in Siacoin to utilize their hard drive space. Hosts are paid out only after they’ve proven they are storing the file in question. This functional process is made possible by a form of smart contract called ‘file contracts’. The contract establishes parameters of the host-renter relationship like price and uptime commitments. The contracts are automatically enforced by the network and usually last 90 days.

Siacoin is available in the marketspace. The main crypto exchanges for trading  Siacoin securities are currently Binance, OKX, Huobi Global, Mandala Exchange and Gate.io.  It can be traded on spot markets against fiat currencies such as the US. dollar and the South Korean won.

Siacoin is accessible to anyone with a need to store files. The network is said to be easily accessible to individuals that are interested in file storage. There is no special requirement needed to be a renter or storage provider.  Advocates of the Network see it as a way by which data can be moved out of control of corporate agencies and placed in the hands of private individuals. 

Siacoin has a blockchain that is secured using a proof of work consensus algorithm. The proof-of-work consensus algorithm is said to require a confirmation from a majority of the miners. No single node can be accessed independently. Each renter has a private key of access. Even if this key is sometimes tampered with by malicious hosts, all they would have is a fraction of the file stored.

Siacoin has no price limit. There is no limit to the amount of siacoins that exist in circulation on the market. Unlike the Siafunds with only 10,000 tokens, siacoin has no maximum supply. The network is said to have been done this way because it is a utility token designed to be used to power transactions via smart contracts. There must be a limitless supply of coins in order to match the limitless amount of data that can be created and stored.

Recap

With its high network storage capacity and ability to secure files, Sia places itself  in the league of major cloud storage providers we have today. Sia operates without depending on an internet provider (ISP) which could go down easily. Files stored on the network are divided into 30 different redundant segments, so no single system has all the information at a particular time. Anonymity is guaranteed as each renter has a unique key pass. Renters pay in Siacoin for storage, and providers are paid in siacoin for their services. This makes Sia beneficial to both parties.