Siacoin is the native cryptocurrency of Sia, a distributed, decentralized cloud storage platform built on blockchain technology.
Sia is a safe cloud storage marketplace where users can store their data or lease access to their empty storage space. It was officially launched in June 2015 by David Vorick and Luke Champine in collaboration with Jim Pallotta, the founder of Raptor Group.
Sia is similar to cloud storage solutions like those offered by internet giants Amazon and Google. However, instead of entrusting their data to a firm, its customers rely on software and a distributed network of worldwide computers.
Siacoin serves as a medium of exchange for paying for storage on the network. And if you want to learn more about Siacoin and why it would make a good investment, read on.
How Does Siacoin Work?
Renters pay hosts in Siacoin to use their hard drive space, and hosts are only paid out after proving they are hosting the requested file. Sia uses “file contracts,” to establish all aspects of the relationship between the host and renter, including the price and obligations. The contracts usually last 90 days.
When a file contract is concluded, the host needs to provide storage proof. They need to demonstrate that the small amount of data they are storing is truly part of the renter’s file. The proof should be added to the blockchain within a certain amount of time and the host receives compensation in Siacoin.
Sia divides files into 30 nodes that are all encrypted. This eliminates the possibility of the network’s single point of failure.
The Sia program also employs a technique known as erasure coding, which incorporates redundancies to ensure that a user can always access their files, even if 20 out of 30 hosts are unavailable.
Why Invest in SC?
The short-term Siacoin (SC) price predictions are that the coin will trade around an average price of $0.014 by 2023 and will rise 122% from the current price by the beginning of 2024. These numbers indicate that Siacoin can be a good investment.
Still not convinced? Here are three more reasons why you should buy and invest in SC.
Cost-Effective Cloud Storage
As a result of inflation, cloud storage providers’ rates are constantly rising to keep up with the rising costs. Microsoft Azure, for example, charges over $20 per month for 1TB of storage. To compare it, the Sia network charges less than $5 for the same service, resulting in a nearly $15 difference.
So, if you’re interested in acquiring cloud storage services and you plan on using the Sia network for it, you should definitely invest in Siacoin. Keep in mind that, as the network’s use grows, the value of Siacoin is expected to rise as well.
Peer-To-Peer Storage Solutions
Sia is essentially a crypto peer-to-peer cloud storage network. The provider offers solutions to anyone who is a part of the chain. Apart from the cost-effectiveness of the Sia network, there are numerous advantages to becoming a peer-to-peer solution provider.
For example, the network provides security to its users because. Furthermore, cloud storage providers must own a certain quantity of Siacoin locked into a deal, to join the Sia network.
These contracts are enforced cryptographically in the blockchain, simplifying the procedure for users. The user is reimbursed in Siacoin if the host fails to perform its tasks or loses the client’s data.
Furthermore, because the renter pays in advance, the host is assured of receiving payment from the transaction, making it a win-win situation.
Sia has stringent security protocols. Compared to traditional cloud storage providers, the network’s security has a few advantages. First, central servers cannot attack the network, and any hacker will have to engage in numerous activities to access the system.
Moreover, the hosts are anonymous, indicating that the encryption and data transfer levels are at their highest. The only people who have access to the information are the owners. Finally, the Siacoin network distributes files among multiple computers, allowing renters to view their files even when they are not connected to the internet.
Unlike traditional platforms, Sia has no risk of a single point of failure because it’s a decentralized cloud with data stored on a blockchain.
The platform allows for peer-to-peer solutions and offers the utmost security. It allows you to rent available storage space and pay with the native Siacoin token.
For those interested in the disruption blockchain could bring to the cloud-storage market, Siacoin is an amazing coin to explore. Also, the token is projected to become even more profitable, so it’s wise to invest in it now.