What Is Siacoin?

Centralized storage services are prone to single points of failure and unencrypted data misuse for the purpose of generating higher business profits. Sia unites large volumes of storage space with a blockchain to produce an encrypted and decentralized cloud storage. It therefore eliminates the need for dependence on centralized data centers that aren’t reliable.

Sia was conceived with the mission of becoming a storage layer of the internet. They believe data should be free. Sia aims to liberate unused bits of the world and construct the planet’s largest storage super server. The idea for a decentralized cloud storage first came up at a hackathon organized by Massachusetts Institute of Technology(MIT) in 2013.

How Does Siacoin Work?

All of the services on the network receive Siacoin (SC) payments. All of the Sia ecosystem transactions are secured by filing contracts and storage proofs.

Storage Ecosystem

The Sia ecosystem provides storage options that meet any need and is largely driven by the free-market. Prices are set by providers according to their wish. They can advertise according to their reliability level and set penalty standards should problems with storage arise. In addition, they can decide to deny a client storage if they aren’t comfortable with the nature of that data (e.g. illegal, sensitive or questionable)

File Contracts

The file contracts define the storage agreement terms and ensure that both parties conduct their business appropriately. As a contract stored on the blockchain public ledger, the original arrangement can be verified and is immutable once it is submitted to the network.

Proof of Storage

If a provider cannot provide proof of storage with the time window, the proper payment is redirected to a missed proof address until proof is submitted. Also, the provider may be penalized for negligence. The contract may terminate completely if a provider misses too many proof of storage mandates.

When a provider eventually provides a proof of storage, the contract sends payment to a valid proof address. Several spend conditions have to be met before a provider can access these coins, which include network signatures and time locks.

Siacoin Team

Competition

Siacoin competes with Storj and MaidSafe. Sia and Storj use similar strategies in approaching decentralized storage. Sia is different in that it operates using its own blockchain while Storj is an ERC20 token on Ethereum. At the moment, SC has the highest market cap of all its competitors.

Trading History

The next significant price jump happened in May/June 2017, which happened right after the company released an update containing positive news chief of which was the publication of a roadmap. In mid June, the SC price reached an all-time BTC high of 0.00000843 BTC.

The most recent price jump happened at the same time as the 2017 bull run in which it hit an all-time USD price of $0.10. Siacoin like most crypto-assets hit hard in the 2018 corrections. It seems to have found some support at around $0.002 (0.00000062 BTC).

Now that there is a product in the market, it is believed that increased adoption will impact price the most. Some partnership announcements will also impact as well. If anything has been learned from the previous price jumps, these might just be the turnaround needed to get this coin moving.

Where to Buy and Store SC

SC can be mined and two main options for this are SiaMining and Luxor.

The Sia team has provided two wallets to store Siacoin. The first is Sia Daemon which is a command line interface (CLI) wallet that is available on Windows, Mac and Linux. This wallet might be more useful to tech-savvy people. The second wallet from Sia is Sia UI which is more user-friendly that Sia Daemon.

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