Sia is reinventing cloud storage. The Sia blockchain technology connects users who need file storage with hosts worldwide offering underutilized hard drive capacity. Blockchain technology secures their data and enables improved economics for users and hosts.
What is Siacoin?
Siacoin (SC) is the native utility token of Sia, a blockchain-based distributed, decentralised cloud storage platform. Sia acts as a secure, trustless marketplace for cloud storage in which users can lease access to their unused storage space. Agreements and transactions are enforced with smart contracts, and Siacoin is the medium of exchange for paying for storage on the network. The main goal of the project is to become the "backbone storage layer of the internet."
Who is the founder of Siacoin?
Siacoin is created by David Vorick and Luke Champine of Nebulous Inc. As the traditional storage platforms are higher in cost, more expensive and data is not well protected. Siacoin promises to offer secured storage transactions with smart contracts which is more affordable and reliable. Moreover, it is completely open source which means many individuals have contributed to Siacoin’s software hence there will be an active community building innovative applications on top of the Sia API.
What is the goal of Siacoin?
In 2018, Siacoin aims to introduce file sharing and be the go-to cloud storage platform for companies. Their goal is divided into 3 time frames which are short-term, medium-term and long-term development. Short-term development focuses on file sharing between Sia users. This allows Sia users to share files in the platform without having to take it off the cloud while increasing network utilisation. Medium-term development’s goal is to enhance partnerships. This means reaching out to large companies like Netflix and Dropbox to hopefully be able to be their storage and distribution framework. Lastly, long-term development aims to expand its horizon to share files with non-Sia users and support mobile wallets.
What Makes Siacoin Unique?
The long-term goal of Sia is to compete with existing storage solutions. It sees itself as being in direct competition with major cloud storage providers such as Amazon, Google and Microsoft. Because of its decentralised nature, Sia is able to offer competitive storage rates.
Files stored on the Sia network are divided into 30 encrypted segments, with each segment uploaded to a unique host for redundancy. The agreements between uploaders and hosts are recorded on Sia's blockchain and enforced using smart contracts. Siacoin acts as the method of payment on the network, with renters paying hosts using SC, and hosts locking SC in smart contracts as collateral.
Skynet, the company behind Sia and Siacoin, has announced several products built on top of the Sia network, including SiaStream — a cloud-based media streaming application — and the Skynet network — its flagship content delivery and file sharing network.
The company has received several rounds of funding and grants, including from Bain Capital Ventures, Paradigm and INBlockchain. In addition, each storage-related transaction on the Sia network is subject to a 3.9% fee, which is distributed to holders of the company's second cryptocurrency, Siafund — with Skynet holding approximately 85% of all Siafund.
How Is the Siacoin Network Secured?
The Sia blockchain is secured using a proof-of-work consensus algorithm, meaning that miners compete among each other to add new blocks to the blockchain and a majority must confirm a record for it to be posted. Sia co-founder Vorick argued in June 2017 that proof-of-work is the best way to secure the network because it tethers a malicious actor's ability to attack the network to massive energy requirements and hardware expenses.
According to Sia's development team, the fact that hosts have to put up collateral in order to participate in the network's operations decreases any incentive for bad actors. In addition, it has pointed to the fact that it splits uploaded data into 30 segments, which are then distributed across the globe, as reassurance that its network cannot be taken down except in the event of a massive natural disaster or geopolitical event. And as long as 10 out of 30 hosts survive an attack on its network, files can still be retrieved.
