Siacoin is a decentralized blockchain-based cloud storage platform that is completely private.
The most important thing about Siacoin is that hosts can determine their own prices for entering out their hard drives.
The price of Sia generally ranges from US$ 10-20 per terabyte and Siacoin is a native utility of Sia.
Siacoin – An Overview
In its simplest form, SiaCoin is a decentralized cloud storage service.
It is similar to that of other centralized storage providers like Dropbox. Sia is a secure and trustless marketplace for cloud storage in which users can lease access to unused storage space.
The main difference between Sia and other conventional storage providers is that it uses blockchain technology to facilitate transactions.
The agreements and transactions are enforced with smart contracts and Siacoin is the medium of exchange for paying for storage on the network.
Siacoin was created by David Vorick and Luke Champine of Nebulus Inc. It was first announced in May 2014.
A year later in May 2015 it was revised and re-announced and was officially launched in June 2015.
Features Of Siacoin
Decentralized – There is no centralized body to control and monitor the transaction and circulation.
Affordable – The average storage price is much lower compared to its competitors.
Redundant – The files of the renter are stored in multiple locations. This allows the user to access his files even if multiple hosts go offline.
Encrypted – The files stored in Sia are encrypted using Twofish cryptographic algorithm
The main advantage of Sia over conventional storage platforms is that it uses smart contracts which is more reliable.
It also provides secure and fast transactions using blockchain technology. And Siacoin is used as a secure mode of payment on the network where the renters pay the host using Siacoin.
Circulation Of Siacoin
Unlike other digital currencies available in the market, Siacoin has no maximum supply limit.
This is because Siacoin is a utility token used to power transactions via smart contracts. Due to the limitless amount of data that can be created and stored, the supply of Siacoin is also limitless.
Sia blockchain’s proof-of-work mining algorithm is used to mine Siacoin. The reward for mining started with 300000 Siacoins and decreased at the rate of 1 Siacoin per block mined. In July 2020, it reached 30000 Siacoins which happens to remain constant.
In order to increase the security of the network, the Siacoin developers are intending to introduce a proof-of-burn algorithm that will manage inflation and control the Siacoin circulation.
The safest option for storing Siacoin is to use the official Sia-UI app. In the Sia-UI app, there is a wallet option that helps the user to store Siacoin tokens.
A unique key is generated when creating a wallet which is used as access to the wallet. After synchronizing with the Siacoin network, the application also helps the user to send and receive Coins.
The project has a lot of advantages. It serves as an efficient alternative to conventional cloud storage networks.
It also provides better profit to the miners not only in the form of rewards but also by renting out excess storage.
The main disadvantage of Siacoin is its limitless supply and network hash rate. The decentralized nature also makes the network prone to attacks.