Siacoin (SC) – everything you need to know about it
Cryptocurrencies aren’t just another form of money, and the Siacoin proves this. You can spend bitcoin and various cryptos on products and services, but Siacoin lets you rent hard drive space. Think of cloud storage solutions like Google Cloud, but it’s powered by blockchain. As a result, individuals and companies can store their data safely and easily.
The Sia network can store all your files, so you don’t have to expand your internal hard drive or buy external storage. This is especially helpful for businesses since they tend to accumulate a huge amount of data. Not only is it a lot easier to use, but it also secures your data with blockchain tech. Even better, you can earn money from it too!
Let’s start by explaining how the Sia blockchain was founded and how it works. We will also show you its pros and cons by comparing it to similar crypto called Filecoin (FIL). That way, you will also see the different ways of applying blockchain cloud storage. If you’re looking for a file storage crypto, this could help too.
What is Siacoin (SC)?
In 2013, a pair of computer science students from the Rensselaer Polytechnic Institute created Siacoin: David Vorick and Luke Champine.
They came up with a decentralized file storage platform during a hackathon at MIT in 2013. The next year, they established Nebulous Inc. with $750,000 pooled from various investors.
As we said earlier, it lets users rent their unused storage space to others. Unlike most cloud storage methods, this one has the security of blockchain.
People may buy and sell on the Sia platform using Siacoin (SC). Later, we will explain why it uses this cryptocurrency instead of regular money.
At the time of writing, the Siacoin price was $0.02073, and it had a circulating supply of 49,188,742,992 SC. Note that these may have changed by the time you’re reading this.
How does Siacoin work?
Blockchains are known as decentralized networks, meaning it doesn’t have a central authority running them. Instead, it works with the help of people pitching in to become one of its nodes.
Those nodes allow the network to do its job. In the case of bitcoin and most cryptocurrencies, they confirm transactions using these coins.
What’s more, the work is spread among the nodes, so everyone pitches in equally. If one of them breaks, the whole thing can still keep on running.
Imagine applying this as a storage solution. It’s likely to keep working despite issues that may arise. Unlike regular networks, no one target will wipe out the entire thing.
This is the basic principle behind this decentralized cloud storage platform.
Its nodes are folks with unused storage space, and Sia connects them with people who need to store data.
— Sia Foundation (@Sia__Foundation) May 17, 2021
If you want to use Siacoin, you will have to start by downloading its software. This will allow you to access the Sia network from anywhere in the world.
Then, you’ll have to pay with Siacoins to use the service. After that, you may upload all the data you want that fits the data storage cap, and Sia will keep your data safe via encryption.
You will also get a private key that allows you to start data delocalization. Once you start it, the Sia software will split your files into 30 parts and then send them to various computers worldwide.
Meanwhile, smart contracts are in charge of paying hosts of your data with your Siacoin. These are agreements that execute without the help of a third party.
Once the conditions are met, they will execute no matter what. The smart contracts will set the pricing and other conditions of the relationship between you and the hosts.
Read More: What Are The Uses Of Cryptocurrency?
How do I earn Siacoin?
— Sia Foundation (@Sia__Foundation) August 20, 2021
Cryptocurrencies serve as the profit incentive that keeps the network running. Without them, people are less likely to help operate them and also help fund the networks.
Siacoin works like this too. People allow people to rent data storage to earn more SC, and those coins come from the customers who need the data-keeping feature.
What’s more, you can mine Siacoin like most other cryptos, and your computer will confirm SC transactions, so you get more in return. Also, you could buy Siafunds.
These tokens let you earn revenue from various sources such as renter bandwidth costs and fees and host collateral. You start by entering a contract.
Once that ends, you get a 3.9% cut from each of these sources. You can buy a Siafund by following the steps on this website.
Siacoin (SC) vs Filecoin (FIL)
That’s why Siacoin isn’t the only crypto that gives data storage. One of its biggest competitors is Filecoin (FIL). It keeps your data for you, but it’s better than Siacoin in certain ways.
For example, it can improve by getting new features without hitting major issues. You have to pay to get a Siacoin host, but you can use Filecoin for free!
However, Filecoin is still under development, and it’s hard to use. You will need extra know-how to make sense of Filecoin. Worse, your data will be in one node.
Let’s say someone hacks the Filecoin network. If the hacker hits the node that contains your data, you may lose it all! Siacoin avoids this by splitting your files into 30 parts.
Those are spread among various nodes. Even if 20 out of the 30 hosts of your data go out, you will still be able to get your files. This may not matter if you’re an investor, though.
Coins with plenty of users are more likely to thrive in the long run. That’s why Filecoin might be a better pick than Siacoin. Of course, you never truly know what will happen next in the crypto market.
For example, people didn’t expect Shiba Inu (SHIB) coin and Dogecoin (DOGE) to skyrocket last year. Perhaps Siacoin may also hit such an all-time high within 24 hours.
You can buy Siacoin in various cryptocurrency exchanges like Binance, Bitrex, and Kraken. It’s not available in Coinbase, even though it’s one of the biggest crypto trading platforms.
This article is just for informational purposes. Plan your investments first before spending on them. Don’t use the money that you are not willing to lose.
Check out the other Inquirer USA articles to learn more about cryptos. What’s more, you can read about other assets so that you can build the best portfolio.