Siacoin (SC) is the native token of Sia. Sia is a blockchain-based platform that provides decentralized cloud storage. It is a competitor for the companies which provide cloud storage such as Amazon, Google, and Microsoft. Its decentralized structure is its uniqueness. The main goal of the project is to become the “backbone storage layer of the internet.”
It has divided its consumer base into two parts- Hosters and Renters.
Hosters are the people who lend their storage space so others can upload files to the network. Renters, on the other hand, are those that upload files to the network. Both parties come into a contract. Hoster is paid in Siacoins and Renters make their payment in Siacoins.
Sia provides an alternative solution to traditional cloud storage services. It provides greater security and efficiency, and most importantly, it is decentralized. It allows users to make sure they know each and everything about the data storage. It uses smart contracts to execute data storage transactions.
History of Sia
Sia was first conceived when David Vorick presented the concept at a hackathon held at MIT in September 2013. David Vorick has discussed the idea of Sia over an email with Luke Champine, his college friend. The name Sia came as a reference to the Egyptian god of perception. The two have collaboratively founded the Nebulous Inclusive and SkyNet Labs.
SiaCoins (SC)
Siacoins are the utility tokens that power the Sia blockchain. The blockchain requires siacoins whether you want to hold or trade, rent, or host data. The coins can be used in a lot of ways but serve a single purpose – facilitating network operations. If you upload files on the network, then you pay for that storage in Siacoins. If you store other people’s data then you will get paid in siacoins.
Siacoin has a market cap of $175.78M which ranks 157 according to CoinmarketCap (CMC). The circulating supply is 51.48B.
Advantages of Sia
- It is transparent as everyone can freely view, modify, and contribute to cloud storage. Also, It engages the community in cloud storage.
- It is decentralized which means no central authority is involved. This eliminates delays in the whole process of cloud storage.
- It is cost-efficient as there is no need for data centers as the whole technology is developed in blockchain and payment is done in Siacoins in the whole ecosystem. This helps in cost-cutting as compared to traditional cloud storage solutions.
- It is fast as smart contracts are directly executed when a predetermined condition is met enabling the speed in the whole process.
Disadvantages of Sia
- It has less adoption rate than the same players in this ecosystem. Also, it is less popular in the world of cloud storage.
- As hosts are individuals, the reliability and speed can vary according to them.
- Several decentralized cloud storage providers such as Ankr, and Filecoin are more dominant and have a larger user base than Sia.
Conclusion
In this emerging world, decentralized cloud storage is a technological innovation. However, to remain at the top, one should have to consistently work towards the upliftment of the project which needs to be noticed in the case of Sia. The platform is definitely a revolution in the cloud storage space but it seems that it has not gained the much popularity that it needed.
Still, Siacoin has a great market cap which can be seen as the popularity of a coin in the crypto space.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.