In the last decade, a lot of cryptocurrencies have emerged in the market. Every new cryptocurrency founder wants to win some market share by remedying flaws of previous currencies. Some are even expanding the blockchain technology outside the financial realms to other areas such as social media and data storage. In this post, we comprehensively review Siacoin.
What is Siacoin?
Siacoin is an open-source technology applied into the cloud storage space. Instead of working on massive data storage centers such as those held by tech giants like Google and Facebook, Siacoin blockchain technology was founded by David Vorick and Luke Champine of Nebulous Inc in 2013, and targets networking people and allowing them to lend their space for cash.
The main goal of forming Siacoin is to deliver decentralized datacenters that can guarantee the world of the fastest, most secure, and cheapest cloud storage platform. Because of the fast growing competition for cloud storage, the blockchain technology targets employing special features to make the space more attractive and enlist users from top companies such as Amazon and Microsoft.
How does Siacoin work?
To join and start earning from Siacoin, you must have ample storage to lend. Then, signup and download the Siacoin Wallet that comes with all components of working on the blockchain. Besides, you will be required to buy a minimum of 2000 Siacoin that are priced around $40. This is the bottom line for those who want to lend their space.
When a host reaches Siacoin to lend its space, the blockchain uses the following assumption to forge the best operational environment and guaranteeing security;
- The host might be untrustworthy
- The host might not be charitable
- The host might be unstable
- The host network might be hostile
To address these assumptions and make clients’ data and network safe, Sia utilizes 3 main strategies.
- Encryption: This is used to ensure that all the data stored on host storage remains private and cannot be read even by the host. Every piece of data is encrypted before getting released to the network.
- Redundancy: Data o Siacoin blockchain is not simply given to one or several hosts. Rather it is spread through thousands of hosts in varying blockchains using Reed-Solomon types of coding.
- Aligning incentives: The notion that hosts will get paid is the ultimate incentive that draws people into the blockchain. By knowing that there is some reward, every host will ensure that the network remains open for regular updates.
Main Siacoin Features
Siacoin Integrates all the blockchain functionalities that users need to operate in the network. These include actions to create new contracts, uploading files, and leasing the disk. This means that once you signup for the network and downloads the wallet, it should always remain open to allow miners to access it and ultimately earn from its use.
This is the agreement that allows a host (a person lending space) to join the network and start earning. It is commonly known as smart storage file contract that makes the selected host space part of the Siacoin Blockchain. You must agree to always maintain the contract open for a specific time to get the agreed payment.
Proof of Work Blockchain
This is the main technology used to operationalize the Siacoin wallet and storage contracts. It is a method of allocating some section of memory disc to help solve various challenges created by the provider. The main difference between Proof of Work from Proof of Space is that the former uses CPU-bound functions while the latter requires the verifier to send proof that the content is still stored.
Pros of using Siacoin
- Because of distributed nature of Siacoin, latency, dependability, and security are optimized. The focus also helps to reduce barriers to entry while lowering the cost of cloud storage.
- Siacoin network provides a unique way of making handsome income even without getting into the inherent complexities of cryptocurrencies.
- Siacoin uses the latest technologies to guarantee users of total security of their files and control.
- Siacoin is bridging the world of Cryptocurrency with the real world so that even common people can still apply them to their daily lifestyle.
Cons of using Siacoin
Unlike other cryptocurrency blockchains, Siacoin is very complex to start applying. Though more people are still joining the network, the pace could be faster if verification and joining the platform is simplified.
Because renters are required to select preferred hosts, there is a risk of the criteria getting influenced through price manipulation. This opens the avenue for a Sybil-attack where a single individual pretends to be several parties and infiltrates the specific nodes.
Where to Buy and Sell Siacoin in Australia?
Crypto Currency for Fun recommends buying Siacoin at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including Siacoin and they offer Instant Delivery or your coins right into your account.
Siacoin blockchain technology has entered a very rich niche of data storage that is proving highly competitive. Because of the huge potential of attracting even big data companies, Siacoin is no doubt one of the future cryptocurrencies to watch.