What Is Siacoin

Sia is a specific cryptocurrency software developed to allow anyone to rent out unused hard drive space. This is intended to aid users who are looking for storage solutions based on blockchain technology.

Sia can be compared to Amazon or Google solutions, however, it differs in the sense that you do not have to put your trust in such a company to manage your file or data, as you will only need to rely on the software as well as the distributed network of computers on a global scale.

Siacoin Founders

Sia itself was founded by two developers.

The first one is David Vorick and the second one is Luke Champine. It was founded in 2013 when they were computer science students at the Rensselaer Polytechnic Institute.

The idea came to mind at a hackathon which was held at MIT in 2013, where a year later, they founded a company known as Nebulous Inc. which was supported by $750,000 in funding from Xiaolai Li and Procyon Ventures.

In regards to the team behind Sia, they are still involved in the project and have added a lot of new developers.

How Does SC Work

Siacoin (SC) is a utility token for the network itself. This means that it is the only form of payment that can be spent by the users of the blockchain when they enter renter or even host agreements. Every renter has to buy as well as spend Siacoin (SC), with the intention and goal of storing files. The host has to receive and sell the Siacoin (SC) in order to be compensated for the resources which they are providing. The Siacoin (SC) has miners as well who give computing energy power for the creation of blocks that batch transactions on the network itself.

Furthermore, given the fact that Siacoin (SC) is the currency of the Sia network itself, renters pay hosts in Siacoin (SC) and utilize the hard drive space that they are paying for. The hosts are paid out after they have proven that they are storing the files they are claiming to be storing.

Sia can achieve this through the usage of a smart contract known as a file contract. This establishes the parameters of the host-renter connection such as the price, as well as the uptime requirements.

 

Keep in mind that the average span of these contracts is 90 days, and they are automatically enforced by the network itself. When a file contract ends up being completed, the host has to prove that they are storing the data that they are claiming to, this is done through a process called storage proof. This process allows a host to prove that the tiny portion of data they are storing is part of the renter's file, and the host gets paid in Siacoin (SC) if the proof is added to the blockchain within a specific time period.

However, before the files are uploaded as well as distributed to the hosts, Sia breaks down the files into a total of 30 pieces. Each of these pieces is encrypted, which ensures that the network cannot have a single point of failure as a result of it. The Sia software itself uses a technology known as erasure coding, and this builds in redundancies, that can ensure a user has access to the file system even if 20 of the 30 hosts end up getting offline for whatever reason.

 

Another thing that needs to be discussed about the Sia network is the Siafunds. Siacoin is a cryptocurrency that can be exchanged between the renters and the hosts. It is used to fulfill the smart contracts, however, there is another token within the network known as Siafunds. These facilitate the growth of the network by incentivizing a lot more people to participate. The tokens give holders a 3.9% share of each funding source when a contract ends up getting completed. This includes fees, bandwidth costs, and collateral.

There is no limit on how many Siacoins can exist, however, 10,000 Siafunds tokens can exist, and each of them has been created in 2015 when Siacoin launched. The Siacoin price reflects on this and allows users to store files. Users can buy Siacoins from an exchange using FIAT currencies and as such get access to storage, more specifically, cloud storage. This is then divided, which leads to a high level of reliance, and eventually gets retrieved. This is a cloud storage solution with a high level of reliance. Best of all, FIAT currencies can be used through the right means of getting the Siacoins.

That being said, the Sia Blockchain itself is similar to Bitcoin's, except that it is modified to enable the storage and exchange of files. Due to the fact that the files themselves can be scattered across nodes, there isn't a single node that can access them. Even if a hacker, in some way, gains access to a private key of a user, they would only get a single fraction of the file, which keeps things extremely secure as a result of this. Sia is able to provide a high level of uptime such as the Bitcoin network due to the fact that it is not dependent on a single authority and ensures that users do not need to trust each other in order to store files and take advantage of the network.

Where Can You SC

Siacoin has an available supply of 48,379,155,000 coins. If you want to buy, sell or trade Siacoin (SC), you can do so on exchanges such as Upbit, Binance, OKEx, and Kraken.