What Is Siacoin?
Siacoin is a decentralized cloud storage system that uses the blockchain to facilitate payments. Sia allows you to rent storage for bitcoin, host files, mine Siacoin, and contribute to the project. Existing cloud storage providers are centralized. The cost is high, and the data is usually unencrypted. Each provider usually has only a few large data centers of storage. On the other hand, Sia provides decentralized and distributed private cloud storage at a much lower price.
Sia uses the cryptocurrency Siacoin to achieve decentralized payments through a file protocol. Siacoin is a core component of our crypto Service Level Agreement. Siacoin is a way for us to do things that Bitcoin and traditional online payments can’t. Sia was originally conceived at HackMIT in 2013. Imagine if all the data in the world were released and turned into a global data market.
Sia uses the capabilities of blockchain technology to enable distributed networks to reach consensus securely without any trust. Encrypted and secure smart contracts can ensure that no third party interferes with encryption and data transmission.
Sia is an innovative cloud storage method. Sia is a new approach to cloud storage platforms. Instead of letting one company own and manage all the data centers, Sia opened the gates and allowed anyone with hard drives to rent them out. Redundancy and encryption protect data integrity.
Sia’s commitment is to build a global network of data centers, making them the most efficient, secure, and cost-effective cloud storage platform. To become the main cloud storage provider today, you need a data center. You also need to build trust in the marketplace, connect with customers, and compete with giants like Amazon, Google, and Microsoft.
Breaking into this market is a multibillion-dollar task. Sia’s long-term goal is to become the primary storage layer of the Internet. They think the data should not be restricted. They are determined to release unused data and build the world’s most powerful super storage server.
How does Siacoin work?
The currency of the Sia Siacoin network is Siacoin. Siacoin hosts pay renters to use hard drive space. The host will only get paid if they can prove they have the relevant documents. Sia uses a smart contract called Document Protocol to achieve this functionality. These contracts define the parameters of the landlord-tenant relationship, such as rates and obligations. These contracts usually last for 90 days and are automatically executed by the network.
The document contract must be signed by the host. Next, the host must prove that it is actually storing what it claims. This process is called Proof of Storage. If the proof is added to the blockchain within a certain time, Siacoin will pay the host.
Sia splits the file into 30 pieces before uploading and distributing it to the host. Then encode each part. This ensures that the network is protected from any single point of failure. Sia also uses a technology called erase encryption. This creates redundancy to ensure that the user can always access their files, even if up to 20 out of 30 hosts are offline.
Siacoin is a cryptocurrency that can be exchanged with owners to fulfill Sia smart contracts. Siafunds is another token provided by the network. Siafunds encourages the development of the Sia Network by encouraging more Sia users to join. Once the contract is completed, the token is entitled to a 3.9% stake in each funding source. This includes tenant fees and bandwidth costs.
This means that there is no limit to the number of Siacoins that can be generated, but there are always 10,000 Siafunds tokens. All of these Siacoins were created when the Sia program was first launched in 2015. Nebulous was originally an owner of all 10,000 Siafunds. However, the company later sold the tokens to fund the development of the network. As of 2020, Nebulous holds the ownership of Siafunds approximately 8,750. The rest is owned by Sia customers. The value of Siafunds varies depending on the size, amount, and value of Sia contracts.
Who created Siacoin?
Sia was created by developer David Vorick and a pair of computer science students Luke Champine at Rensselaer Polytechnic Institute in New York.
The idea for a decentralized file storage network was first presented to them at the MIT Hackathon in 2013. The following year, Vorick and Champine used $750,000 from Procyon Ventures and Li Xiaolai to create Nebulous Inc.
Vorick is not only a Sia contributor, but he is also a Bitcoin Core contributor. Bitcoin Core is the basic software used by all nodes in the Bitcoin network.