Siacoin (SC) cryptocurrency - what is it and why is it needed in simple words

The modern cryptocurrency market allows users to appreciate the benefits of existing coins on a daily basis. The choice is really huge. However, there is a project that differs from others in that it guarantees users an unprecedented level of data protection, in addition, access to storage tools. Cloud data warehouses, as they are commonly called, have already become an integral part of our reality in 2019. With their appearance, external hard drives and flash cards began to recede into the past, because now storage of any data is possible in the data centers of any company.

The leaders of this market are well-known corporations that are very difficult to compete with - Google, DropBox, Microsoft, Amazon. However, the development of technology is proceeding at a rapid pace, and today there are companies offering innovative ways of storing information. In our article, we will talk about Sia - a new decentralized cloud storage platform (information on decentralization here ), as well as the digital currency Siacoin created for this project. You will learn all about the safest, fastest, and most importantly - inexpensive way to store information.

What is Siacoin (SC)

Taking a closer look at Sia, we can say that it is a decentralized cloud storage platform. Thanks to its use, you can store your files using free space on hard drives anywhere in the world. And although this service appeared relatively recently, it can be called a worthy competitor to other platforms known throughout the world.

It should be noted that today there are 894 active hosts on the World Wide Web, with a total of 213 TB of information stored on them. As for the available volume of such storage in total, it reaches 4.7 PB. Users have the ability to track this data online. This can be done by going to the main page of the site. There is also a map on which you can see where the hosts are located.

Now lets take a look at what Siacoin is. This is a product of this platform used to store information on the blockchain . This altcoin is designed to pay for cloud storage services. Lets take a concrete example: anyone who has a certain amount of SC can rent space from Sia hosts. This can be done using smart contracts that are saved in the Sia blockchain. If the host loses the file, the payment is not transferred to him. If the file has been stored on the host for a certain time, the smart contract will transfer the payment to it.

Due to the distributed nature of the Sia network we are considering, it becomes possible to optimize the bandwidth of this network, its security and reliability, and reduce the response time. In addition, any user has the opportunity to rent space for storing information, and this is reflected in the total cost of storing information, reducing it.

History of Siacoin (SC)

The developers of the platform itself and the coin for it were young programmers working in the IT company Nebulous Inc. They united into a team that together were able to develop an innovative principle of secure data storage. They also created the Siacoin crypto-coin used in this project. The history of Siacoin began in September 2013. It was then that the creators of Sia, Luc Champine and David Vorick, thought about developing a project for cloud storage of information on the blockchain. The young people were students at the Rensselaer Polytechnic Institute, where they studied computer science, so they had all the knowledge and skills necessary to implement their plan. They named their project HackMIT.

In late spring 2014, Luc Champine and David Vorick became the founders of Nebulous Inc. The original Sia Storage Platform network was launched by this particular company. Users were able to get acquainted with the first public beta version of the Siakoin network on the first day of summer 2015. Well-known firms INBlockchain, FirstRaptor Group and Raptor Group, Fenbushi Capital and First Star Venture acted as investors in Nebulous, Inc. Team Nebulous Inc. as follows:

• David Vorick is the companys CEO and co-founder. It is he who is the author of the idea of decentralized storage of information, which is being implemented by the team. In addition, he is the main developer of Sia Core;
• Luc Champin is also a co-founder of Nebulous Inc., working with D. Vorick on the development of the project idea and its implementation. Is a specialist in the creation of decentralized software;
• Steve Funk - Head of Support at Nebulous Inc ..
• Jonathan Howell - Chief Programmer, responsible for the UX design of the project, as well as the front-end of the Siakoin interface;
• Todd Mittenberger is a banker and entrepreneur known in certain circles. He invests in various funds and promising modern projects. Founder of Nebulous (2009), a consulting firm;
• Chris Schinnerl is a successful programmer from Austria who joined the Sia core team in the fall of 2017;
• Zach Herbert is a senior operations manager with a track record of successful work in various commercial projects. Joined the team in early 2017

The team is complemented by experienced developers who have been working in the field of programming for more than a dozen years, which has a positive effect on the popularity of the project.

Distinctive features of Siacoin

The Siakoin digital coin in the project under consideration is used as a convenient payment instrument when concluding agreements on the lease of free disk space between users. In addition, the Siacoin cryptocurrency is the only means of payment that users can use. On the Sia network, this coin is one possible reward payment instrument. Among the most important distinctive features of Siakoin is the low cost of storing information. For example, you only need to pay $ 2 per month to store 1000 GB of information. Compared to all possible competitors, this is the best combination of quality and price.

In the Siakoin network, the users files are cut, after which they are encrypted and transferred to the hosts. To become a host, as well as to be eligible to offer users storage space, you need to have at least 2,000 SC, as well as install a special software called Sia-UI.

Distributed data is necessarily copied several times - this helps them to be mobilized at any time. The Sia blockchain economic system makes it possible to use a service similar to those offered by competitors - Dropbox and Google Drive. However, in Siakoin, the user will need to pay a much lower reward for this. In SC, it is based on smart contracts that are automatically installed on the blockchain and paid by the user. The owner agrees to lease a storage space for a set period of time (usually calculated in weeks). The amount of remuneration is affected by the amount of data storage provided, as well as the connection speed. Processing is provided by miners whose functions differ from those of the owner.

This service can be used by both individuals and legal entities, it is also available for third-party applications. Since the network uses specialized technical cryptographic solutions, it is possible to store not only data regarding the operations performed, but also information regarding contracts that have been issued between users.

According to the developers ideas, Siacoin should become the most voluminous storage of a wide variety of data. With its help, users will be able to listen to music, watch movies, view photos. Today the team is working on creating an application that performs functions similar to torrenting. In other words, Siacoin is striving to carve out a niche in the marketplace where giants such as Microsoft One Drive and DropBox operate. The turnover of this segment cannot be accurately measured, but we can say that it is estimated in billions of US dollars.

How Siacoin works

Lets take a closer look at the Sia platform. All its members can be divided into two groups - providers (hosts) and users (clients). Suppliers are entities that have provided their own disk space for storing information. The system under consideration uses different storage options. Providers, for example, have the right to add services, set their own rates, and charge fines for lost files. They also have the right to charge fines for any problems that make it impossible to access the data. An important point: the supplier may refuse to store data that does not meet certain parameters.

As for users, these include entities who have rented this space and save their information on it. They can also exercise certain rights. They have the ability to share files between several providers, in addition, they have the right to demand the payment of a fine by the supplier if the latter has lost user data or has not provided proof of storage.

Although there is fierce competition at the moment, Siacoin offers its customers important advantages that make it stand out and stand out from other similar resources:

• data is stored within a decentralized crypto environment;
• the cost of services is available for any user.

According to the principle of work, Sia can be compared to the work of the familiar Torrent. Here the user has the ability to download files simultaneously from several other PCs in a peer-to-peer p2p network. In practice, any user with free space on their hard drive can use it to earn SC. To do this, you need to allocate this place for the platform.

The rules according to which the platform considered in the article works:

• blockchain technology is applied;
• full support for the use of smart contracts is provided;
• PoW is used in the role of an algorithm for confirming a transaction, as well as for transferring a reward by a user .

The tariffs offered today by the Sia platform to its customers are ten times lower than those of the main competitors. Consequently, the developers of the project can count on an influx of users frustrated by the high commissions charged by Dropbox and Google Drive. In other words, thanks to a competent pricing policy, the Sia project will definitely begin to actively move forward. All this, in turn, will increase the value of the Siacoin cryptocurrency.

Siacoin advantages and disadvantages

Now lets consider what the advantages and disadvantages of Siakoin exist today. Lets start with the benefits:

• confidentiality - the user has the ability to fully manage their own encryption keys. In this case, third parties are not involved who could find out personal data;
• encryption - segments are sent to hosts in encrypted form. This is possible thanks to the Twofish algorithm. This makes Sia much safer than other well-known cloud storage services. For example, Amazon does not offer automatic encryption of user data;
• decentralization; and a high degree of reliability. The files are split into thirty segments before being loaded, and then sent to thirty hosts. You can perform this segmentation using the Reed-Solomon code used on DVDs and CDs. Thanks to Erasure code, Sia can recover files from any ten segments. Thus, if out of thirty hosts twenty are offline, the user will be able to easily access their own files. If some hosts are offline for a long time, the segments will be transmitted by Cia to other hosts that are online, so that their number reaches thirty again;
• payment using SC. Mutual settlements between tenants and hosts are carried out in this cryptocurrency. In addition, the host leaves a pledge with SC in the smart contracts concluded, therefore, strives to ensure the uptime of the hard disk. Thus, he can return his funds, as well as earn a little on top. It is also beneficial for the tenant - he will be sure that the host will not disconnect for no reason and lose its SIACOIN;
• smart contracts between hosts and tenants. All important aspects of cooperation are recorded in these contracts;
• renewal of a smart contract. When registering it, the tenant sets aside a certain amount of SC, then these coins are gradually spent during storage and transfer of files. In most cases, the contract is for 90 days. It can not be renewed, then unused coins will be returned to the tenant;
• Open source - the software part of Cia has publicly available source code, improved thanks to the actions of leading developers, as well as the entire community.
• Proof of Retention - It is the responsibility of each host at the end of the contract to prove that it continues to retain the segment it received. Verification is carried out using the Merkle tree. Based on the verification results, when there is evidence of the preservation of information in the blockchain for a specific period, the host will be able to receive a reward. Otherwise, he will have to pay a fine.

We will not be silent about the shortcomings of this project, although there are much fewer of them. The most basic is the specifics of SC mining. Since Syakoins can be mined only by using video cards, mining this cryptocurrency on specially created mining farms or using the computing power of processors becomes impossible. Besides, SIACOIN has other disadvantages:

• there is a threat of opposition from competitors - large corporations;
• the very specificity of blockchain technology is such that it causes difficulties in legislative regulation;
• the target audience still regards the possibility of decentralized data storage with a great deal of mistrust.

Nevertheless, it can be noted that the listed disadvantages of SIACOIN are related not so much to technical difficulties as to the distrust of users, their moral unwillingness to actively use and spread the tools offered by this service.

Does SIACOIN mining exist?

The very first Sia blocks in the amount of 100 pieces were mined directly by the creators of the project. The first block received a reward of SC 300,000. For each next block, the reward will decrease by 1 Siakoin. There is also a minimum possible reward for one block - 30,000 SC.

SIACOIN GPU mining is the most popular way to mine this digital currency. Despite certain technical difficulties and low cost, it can be called quite profitable. SC mining works on the Blake2b electronic currency algorithm using the PoW system. As of July of this year (2019), the reward for the block discovered by the miner has reached 85,843 SIACOIN coins. The size of the reward is reduced by 1 coin after each mined block, and this will continue until it reaches the set minimum possible size. After this happens, the reward will remain fixed.

It is worth noting that you can also mine SiaCoin using high-power mining cards, however, the highest hash rate, no doubt, will be given by ASICs. Speaking of mining programs, you will notice that they are quite simple. By going to the official site of Siakoin, you can find all the information you need about this. Officially, Siacoin Miner acts as a miner. It should be noted that before mining SC with a GPU, it is worth assessing the upcoming electricity costs. If the video cards are already outdated, they will produce an insufficient hash rate, so mining on them, with an insufficiently competent approach, will be unprofitable.

For users, other possible ways of obtaining SIACOIN have been developed, except for mining:

• rent of hard disk space. Having a PC or a server connected to the world wide web and working around the clock, 365 days a year, you can become a host and receive rewards in SC;
•  purchase of coins - today the digital currency Siacoin is traded on such popular crypto-exchanges as Binance, Upbit, Poloniex, Bittrex, QBTC, Bitbns, HitBTC, Lbank, Vebitcoin, Abucoins, Bisq.

How to buy or sell Siacoin?

The Siakoin digital currency is traded mainly on four crypto exchanges. These are the well-known Binance, Bittrex, HitBTC and Poloniex. This is where users can trade this cryptocurrency, as well as place coins on any of the accounts of the cryptocurrency exchange. It is worth noting that about 22% of the volume of transactions in just one day (approximately $ 591,866) is performed on the first of the listed trading platforms. Since the start of the Siakoin project was quite successful, this cryptocurrency became interesting for other cryptocurrency exchanges. In addition, today users have the opportunity to buy a coin not only on cryptocurrency trading platforms - they can also use the services of online exchangers . 

Do not forget that the exchange of Siacoin for fiat money is currently impossible. If you want to get SC, having only dollars, euros or other currency in your hands, you will first need to buy BTC (Bitcoin cryptocurrency) for it , and only after that exchange the purchased bitcoins for Siacoins. A similar procedure is widely used for most of the relatively young coins that have not yet become widely known among the players of the cryptocurrency market.

There is another way to get Sia without using the services of crypto exchanges and online exchangers. We are talking about the mining of coins, already discussed earlier in the article. You can also use the help of individuals involved in cryptocurrency trading - you can buy S iacoin from them. Usually, such intermediaries offer their services for the exchange of e-currency on thematic forums. This is where the most active discussions of news from the world of cryptocurrencies take place. But do not forget that in this case there is a risk of encountering a fraudster. Therefore, before transferring funds to such an intermediary, you need to read reviews of his work, given by other users.

SIACOIN to ruble rate

 As of the date of this writing (03.09.2019), the Siacon exchange rate against the ruble was 0.125 RUR per 1 SC. It is worth noting that over the past day there has been an increase in the value of this cryptocurrency by 2%. The market capitalization of SIACOIN on the same date is 5,230,623,703 RUR. Data taken from the site https://coinmarketcap.com/ru/ 

SIACOIN to dollar rate

As for how the SIACOIN rate changed against the dollar, we note that as of 09/02/2019 it amounted to 0.001867 USD per 1SC. Over the past day, it has grown by 2%. The market cap for SIACOIN was USD 78,069,010 . 

 SIACOIN to Euro

According to the website https://coinmarketcap.com, the SIACOIN to EURO rate increased by 2% per day and as of 02.09.2019 amounted to 0.0017 EUR per 1 SC. The market capitalization of SIACOIN on this date is 71,430,256 EUR. 

 Where to store SIACOIN

Now lets figure out how you can store the received Siacoins. Of course, the received coins can be left for storage in the internal wallet of the marketplace. However, in this case, one cannot hope for a high level of protection of funds. For more reliable storage of this cryptocurrency, there is a special crypto wallet called Sia UI. Despite the rather rich functionality, the wallet has a simple and intuitive interface. It is compatible with Windows, Linux as well as MacOS. It is worth noting that it takes a lot of time to download it; on average, the process takes 24 hours. Its duration is greatly influenced by the speed of the Internet. But experts are ready to share a secret: if the download is performed not on the users PC, but, for example, on an external SSD, the process will take much less time.

The wallet allows you to store Siacon, receive and send it. In addition to the listed capabilities, the user can directly manage all the necessary platform functionality, namely, data storage, allocation of disk space, and renting it out. To install a crypto wallet, you need to go to the official website http://sia.tech/, and then click on the Get Started button. Then you need to select the appropriate version. It should be noted that there is no version for smartphones yet, but the creators of the project are actively working on this issue. In addition, they plan to integrate SC into the Ledger Nano S crypto hardware wallet.

Next, you need to perform a few simple steps in a specific sequence:

• specify the download path for the archive, and then wait for the unpacking to finish and run the file called SIA-UI.exe. this wallet is not installed on the hard drive, since it was created in the portable version;
• immediately after the wallet is launched, the blockchain is synchronized with the network. This process is lengthy and can take up to several hours. The user has the opportunity to immediately generate a new crypto wallet by clicking on the link "Create a new wallet". Despite this, it will still not work to start working with it before the end of synchronization;
• performing actions to open a crypto wallet, you need to go through standard procedures. We are talking about generating a private key for access, which consists of words written in a certain sequence, as well as storing this key in a safe place;
• all the features of the wallet can be used only after the end of synchronization. To get an address on the Internet, you need to click on the "Receive Siacoin" button. Thus, the user has the opportunity to always accept coins to this address or generate a new one for each operation. Any of them will be available, and you can see their full list in the "Terminal" section;
• to send funds, you need to click on the "Send Siacoin" button.

The panel on the left contains buttons for managing disk space, as well as files. To get the right to place files, the user must have an amount of 2,000 SC coins or more in the crypto wallet. If he wants to engage in hosting, he will need to establish the terms of a smart contract and then declare them. Only then will the user be able to provide services as a provider.

How much is SIACOIN

Siacoins are issued on each of the mined blocks (as a mining reward). The size of the first reward in the block was set at 300,000 SC, after which it was reduced by 1 Siakoin for each subsequent block (299,999 SC, then 299,998 SC, etc.) to the set minimum value - 30,000 Siakoins. When this limit is reached, the size of the reward will remain at this level. The unit starts up every ten minutes. It is currently not known exactly how many SIACOINs were issued in 2017 in total, but one thing can be said - their number was close to 27 billion coins.

As we mentioned in the previous sections, the developers pre-mined the very first Sia blocks in the amount of 100 pieces on their own, thus receiving a reward for it. Subsequently, miners will receive rewards for mining Siacoin in the next blocks.

Siacoin emission

Siacoin emission - 41 315 510 910 SC. Now this electronic currency has no emission restrictions, which means that new coins may well be created constantly. Such unlimited emission can be considered a serious disadvantage of SC. But it is worth noting that the Proof-Of-Born mechanism is partly struggling with this drawback, because the host "burns" about 4 percent of the income received every time.

What is Siacoin backed by?

This digital currency is backed by a large customer base. As the popularity of the Sia decentralized platform grows, so does the number of its users. All this leads to an increase in the cost of SC. All transactions performed in the Sia ecosystem are secured by smart contracts, as well as proof of storage.

In order to finance the work on improving the network without the use of donations or pre-mining, Sia funds have started their activities. About 4 percent of transfers under smart contracts are transferred to the owners of such funds. Today their number reaches 10,000, distributed using pre-mining. Out of this number, 8750 activities are regulated by structures affiliated with Sia.

 The future of Siacoin

Taking into account the prospects of the Sia project, as well as the efforts made by the team, we can talk about the emergence of increased interest from users to Siacoin very soon. The consequence of such attention will be an increase in demand for the resources available to the resource, an increase in the capitalization of SC, and, accordingly, an increase in the cost of these crypto coins. Although the modern cryptocurrency market is overflowing with a variety of digital currencies, this project compares favorably with those offered by competitors, because it is here that users are provided with an unprecedented level of data protection, as well as access to storage tools.

If, over time, it is possible to implement all the ideas of the Siacoin developers, this digital currency will be able to take its rightful place next to the most promising cryptocoins from the position of long-term investment to generate income in the future. As some experts in the field of cryptocurrency believe, just a few years later, this project will have every chance to successfully compete with its predecessor - Bitcoin. According to experts forecasts for the current and next year, the future of Siacoin can be quite good, since the creators of this project were able to initially choose the correct strategy for its promotion. Speaking about the competitors of this site, it is worth noting that both cryptocurrency services and companies working in the field of digital applications (OneDrive and Dropbox) are such.

Despite the fact that today Siakoin cannot yet be considered a full-fledged competitor to the giants of the cryptocurrency market, it may soon show itself well. True, for this to become possible, it will be necessary to fulfill all the points of the plan outlined in the White Paper for many years to come. While security issues, as well as data centers, are successfully solved thanks to blockchain technology, attracting new users and gaining a good reputation is the responsibility of the development team. It should be noted that the creators of Siacoin are actively working on the implementation of the set plan, which is confirmed by the monthly reports published on the official website of the project. Therefore, when users are convinced that it is possible to make good money on operations with Siacoin, even without super-powerful equipment, the popularity of the platform will quickly increase.