Siacoin

What is Siacoin?

Siacoin or SC is utility token built into the Sia platform. The latter is a completely decentralized project based on blockchain technologies. Sia acts as cloud storage provider. Simply put, it is a blockchain-based alternative to centralized storage providers such as iCloud, Google Drive and Dropbox.

The main advantage of Siacoin is that it allows users borrow free storage space and get rewarded in cryptocurrency. On the other hand, users who require storage space can borrow it using Siacoin tokens.

In addition to SC, the Siacoin network uses another native token – SiaFunds or SF. This is a revenue sharing that gives holders a share of transaction fees paid to SC on every download. The maximum limit is 10,000 SF tokens.

You can obtain Siacoins by mining or purchasing them on a centralized or decentralized exchange platform.

There is no predetermined total supply of Siacoin tokens. Instead, the project implements an unlimited token supply model. All siacoins are mined use of the Proof-of-Work (PoW) consensus mechanism.

According to Siacoin White paper, its official currency is highly volatile, especially in the initial stages of a project. This means that the price of Siacoin changes a lot often.

Due to high volatility, storage users are advised to increase the price of their storage to hedge the effects of volatility.

A more detailed look at the price history of Siacoin and the current price of Siacoin can be found in the chart above.

What are the main features of Siacoin?

As discussed in the What is Siacoin section, we have established that Siacoin is a blockchain-based cloud storage provider. It’s an open source project, which means everyone can contribute.

There are 2 roles in the Siacoin network:

• Tenants pay hosts a commission so they can upload their data to the Sia network;
• Hosts provide storage space and charge a fee. They control the storage space rental price, the contract fee, the security deposit amount, and the cost of bandwidth.

For a fee, users can store their data in rented cloud storage. This data is encrypted into 30 segments on the Sia blockchain. These buckets are hosted by different storage providers.

A smart contract is created between the tenant and the host every time the tenant uploads data to the host’s storage. It determines the data volume, time period and fee for the hosting period.

Both tenants and hosts commit a certain number of siacoins in a smart contract as collateral for the entire hosting period. Renters are responsible for covering network fees, which include contract fees and throughput fees.

After a set period of time, the smart contract checks to see if the host has fulfilled its end of the deal. If the uploaded data is available, they receive payment plus a security deposit. However, if the host loses data due to being offline or for some other reason, they will lose their deposit and will not receive payment.

One of the main goals of the Siacoin crypto project is to become a major player in the cloud storage market.

Who developed Siacoin?

The idea of ​​the Siacoin crypto project was born in 2013 by two computer students. David Worick And Luke Champin. It was announced in May 2014, but for unknown reasons the project was cancelled, announced again the following year and launched in June 2015.

Both David Worick and Luke Champin successfully completed their undergraduate studies at Rensselaer Polytechnic Institute. Before the launch of Siacoin the duo co-founded Nebulous which in 2021 was split into Skynet Labs and Sia Foundation. Nebulous played a significant role in the development of Siacoin.

Skynet Labs has created several products on the Siacoin network, such as SiaStream and the Skynet network.

Siacoin’s core team consists of people based in the United States and the European Union.

There have been several significant investments made in the Siacoin project. This includes a seed investment of US$750,000 from Xiaolai Li and Procyon Venture. Bessemer Venture, Dragonfly Capital and other investors participated in the pre-Series A round and raised $3,500,000.

Be sure to check the current price of Siacoin in the chart above if you are planning to purchase this cryptocurrency.