What is Siacoin?
Sia is a decentralized, peer to peer online cloud-based storage service which runs atop its own blockchain network. The native currency of the network called Siacoin (SC).
History of Siacoin
Sia is the brainchild of David Vorick and Luke Champine, who formed Neboulous Inc. in Boston. The idea was originally discussed in 2013, between the two founders. The first beta was launched in March 2015. The stable Sia network officially launched on June 2, 2016 after few more Beta releases. In January 2018, the Siacoin market cap surpassed $3 billion, for a brief period of time. Neboulous has received funding from companies like Procyon Ventures, Raptor Group, INBlockchain, Fenbushi Capital and investor Xiaolai Li for development.
How Siacoin Works
Sia works much like the popular file sharing technology known as torrenting. When a user uploads to the Sia network, the file is encrypted and broken into tiny pieces which are then hosted by the ‘hosters’ of the network. Only the original user has the decryption key and no hoster has total control of all data, so the data is deemed as safe. The user can retrieve the data on demand. Sia uses Proof of Work (PoW) for validation.
Users need to pay for this file storage service using Siacoin, the native currency of the network. Siacoin is traded on a number of prominent exchanges and can be used to pay miners or hosters, or receive payments from other users.
Sia takes the idea of decentralized data storage to the next level and offers some great advances in this field.
- Decentralized Data Storage: Sia offers decentralized data storage which is safe and retrievable on-demand. An explosion in data storage requirements is currently taking place which makes Siacoin a very viable business plan.
- Cheaper than Commercial Cloud Services: Sia offers a much cheaper alternative to traditional cloud based service providers like Google, Microsoft, Amazon, Dropbox or similar. Moreover, the Sia payment model is PAYG (Pay As You Go), so the user pays no extra charges.
- Complete Privacy: Sia offers complete data security, privacy and anonymity, unlike major corporations who are known for having dubious approaches to user privacy.
- Decentralized Apps (DApps): Due to the decentralization of data, it is easy to build, launch and host Decentralised Apps (DApps) on the Sia network, This is an inherent advantage of the network.
- Get Paid: In addition to PoS rewards, Sia hosts also get paid directly via peer to peer payments from the renting user. The Sia network calculates the earning of each host and the host receives Siacoin for renting out their idle disk space.
- Blockchain Security: Sia network is built atop blockchain technology, so all the advantages of the blockchain are inherently available in the network. Greater security, data integrity and user anonymity are some of the major benefits.
- Fully Featured Cryptocurrency: Siacoin can be used for every purpose inside the Sia network and can be traded for other cryptocurrencies or fiat currencies on many leading cryptocurrency exchanges.
- Positive Vibe from Investors/Experts: High profile investors have shown faith in the Sia business model and several cryptocurrency experts have given the network positive reviews.