The State of Sia, December 2024

Development Highlights

They say December is the month of giving, and true to fashion, the holiday season brought several improvements and updates across all aspects of the Sia ecosystem, particularly in preparation for the V2 hardfork scheduled for mid-2025. Core updates to key components — renterd, hostd, and walletd—paved the way for enhanced scalability, performance, and usability.

The renterd 1.1.0 stable release introduced faster transfer speeds, improved stability, and a more straightforward setup for both casual users and developers alike. Notable updates include support for RHP4 uploads, internalized data management processes, and improved API documentation. However, users upgrading to this version must prepare for a full blockchain resynchronization due to changes required for the upcoming hardfork.

The hostd 2.0.0-beta.1 release focused on hardfork compatibility, marking the transition to the new "core" consensus protocol. This update simplifies network configurations and introduces features like V2 contracts, reduced blockchain size, and efficient contract renewals. Hosts are advised to upgrade promptly and resync their blockchain to ensure seamless integration during the phased activation of the hardfork.

On the user interface front, updates across renterd, hostd, and walletd UI components improved user experience. These included expanded multi-select functionality, enhanced warnings for configuration changes, and better integration of metrics and alerts. Moreover, bug fixes addressed file download issues, pagination glitches, and synchronization inconsistencies.

We have also added a new MiCA Indicators Dashboard on the Sia website highlighting the network’s compliance with the European Union’s sustainability regulations. Detailed metrics on energy usage, GHG emissions, and natural resource impact underscore Sia’s commitment to transparency and environmental responsibility.

What’s the fork?

The Sia network is preparing for its most significant upgrade to date: the v2 hardfork. This mandatory update modernizes Sia’s consensus protocol, introducing faster blockchain synchronization, efficient contract renewals, and improved network performance.

Key Features of the Hardfork:

• Reduced Blockchain Size: The blockchain’s on-disk size will be minimized, enabling near-instant synchronization.
• Improved Contract Management: Enhanced flexibility and reduced lock-up requirements will benefit both renters and hosts.
• Faster Data Transfers: Improved upload and download speeds, concurrent uploads, and browser-based uploads without additional software will enhance usability.
• Cross-Chain Capabilities: Atomic swaps with HTLC support will open the door for seamless interactions with other blockchains.

Hardfork Timeline:

The hardfork will be phased in two stages:

1. March 10, 2025 (Block 513,400): The “Allow Height” phase introduces v2 features while maintaining backward compatibility. Users are encouraged to upgrade by this date to access the new capabilities.
2. June 6, 2025 (Block 526,000): The “Require Height” phase completes the transition, disabling v1 protocols and making the upgrade mandatory.

To ensure uninterrupted access to the network, users, hosts, and developers must upgrade their applications (renterd, hostd, and walletd) before the June deadline.

Preparing for the Hardfork

Sia v2-compatible software is being released in stages:

• renterd and hostd v2: Released in December 2024.
• walletd v2: Scheduled for January 2025.

Upgrading ensures compatibility with the v2 protocol, safeguarding access to Siacoins, contracts, and storage capabilities. Early adoption is highly recommended to avoid disruptions.

This hardfork signifies a new era for Sia, combining improved performance, scalability, and usability. By upgrading promptly, users and integrators can fully benefit from these advancements.

Grants Program Updates

The Sia Foundation’s grants program continues to support innovative projects aligned with its mission of fostering user-owned data. December featured several notable developments:

New SiaGraph Grant Appoved!

The SiaGraph project, which aims to enhance network transparency through data analytics, secured additional funding. With plans for expanded functionality, including a host troubleshooter and advanced tokenomics stats, SiaGraph seeks to empower the community with deeper insights into the network’s performance.

Ongoing Grant Progress Reports

In addition to our recent grant approval, several ongoing grants have reported significant milestones:

• Proxmox Backup Cloud Extension: This project advanced to beta testing, tackling challenges related to middleware scalability, Sia network constraints, and real-time UI synchronization. The team plans to prepare for a stable release in January 2025.
• Sia Virtual Block Device (sia_vbd): Milestone 1 was achieved with the release of a functional virtual block device. Upcoming work includes implementing a persistence layer and multi-tier caching.
• Dartsia Mobile App V2: Progress included integrating file viewer capabilities and advancing app store publication efforts. The team aims to finalize the notification system in the coming month.
• Tiri Vault: This decentralized storage solution completed two-way synchronization functionality and plans to address multiuser support issues in January.
• S5 Network: Progress on the Vup Web UI and Rust-based indexing tools demonstrated the project’s potential for decentralized protocol integration. Upcoming efforts will focus on completing the UI and expanding developer tools.
• Lume Web 2024: Concluding its grant period, Lume Web delivered a robust portal system with plugins for S5 and IPFS integration. Future work will refine the system and align with renterd v2 developments.
• Final SiaGraph Report: The SiaGraph API restructuring and early data collection efforts highlighted the project’s impact on network transparency. The remaining activities will continue under a new grant proposal.
• Nydia Passkey Holder: This browser extension now supports two-way synchronization of passkeys on the Sia network. Future enhancements will address encryption and broader compatibility.

The grants program exemplifies the Sia Foundation’s dedication to nurturing projects that expand the ecosystem’s capabilities while aligning with its core values of decentralization and user empowerment.

That’s all folks!

Thanks for your continued support and dedication as we build the foundation of the decentralized future.

Take care, and see you next month.

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The State of Sia, December 2024 was originally published in The Sia Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.