What is Siacoin?
Like Bitcoin, Siacoin is a cryptocurrency in which there is no central authority or backing of any kind. However, unlike Bitcoin, Sia has a network of smart contracts on its blockchain that secures all transactions on the platform.
Siacoin is very different from Bitcoin in that it is not decentralized. Instead, Sia uses a proof of stake consensus algorithm to ensure consensus. Two years later in May 2017, Sia reached its minimum funding goal of $1.5 million during its pre-sale phase.
The project managed to reach $1 million in the first three days of its public pre-sale phase and went on to raise $20.1 million during its public token sale in November 2017. During its initial public offering in October 2018, Siacoin peaked at $14.
What is Siacoin’s Background?
While Sia was originally developed as a system for large-scale file storage, its potential for widespread use has come into question.
A report from Wired Magazine published a negative review of Sia, which says that the decentralized storage network doesn’t actually save users any money and that the platform has a long way to go before competing with Amazon’s cloud storage service.
Also, Sia’s technology requires the Siacoin cryptocurrency to function. This means that Sia is more of a “store-your-cloud” platform than it is a “store-your-files” network. When deciding whether to use SC or a competing cryptocurrency like Bitcoin or Ethereum, the Sia project has said the choice should be determined by the user’s preferences.
How to Buy Siacoin?
Sia is a distributed, peer-to-peer cloud storage network that allows users to easily rent their unused storage space to other users for a price.
Users do not have to upload a full backup, because Sia is peer-to-peer. To upload a full backup to Sia’s network, users must perform several data transfers to other users, rather than uploading one large file.
Sia’s main selling point is that they are a “trustless” network, meaning users don’t have to trust one another for securing their valuable files. Instead, Sia creates a unique key for each file that is split up into tiny chunks and stored on multiple users’ computers.
The pieces of the key are linked through a hash and link each file back to each user. Sia needs each file to be on multiple machines for the system to work.
What is Siacoin Mining?
Sia’s innovative mining algorithm is referred to as ASIC-resistant. Miners can only gain Siacoin through their sales of the token, as no Proof of Stake mining is available at this time.
In a PoW/PoS system, users compete to become the exclusive miner of the token. If a miner finds the blockchain solution to solve the puzzle of a given blockchain, they are rewarded with Siacoin and the ability to create a new block.
In an ASIC-resistant system, if no one wants to mine the Siacoin, there is no incentive to develop and implement more efficient hardware. As a result, there is no incentive for companies to implement ASICs to mine Siacoin.
How to Store Siacoin?
Siacoin can be stored in Sia’s various wallets, which include its main SiaMiner wallet, its cryptocurrency wallet Jaxx, its private wallet Geth Wallet, and our SiaShield Wallet.
SiaShield Wallet: With this wallet, you will not be charged transaction fees or charges a daily storage fee for keeping Siacoin. However, there are currently no major SiaShield compatible hosting providers yet. You can use this wallet to store your Siacoin offline.
Jaxx: This is the default wallet of the popular SiaMiner Android app.
Geth Wallet: The official wallet for developers that have installed the Sia repo.
SiaMiner Wallet: For companies using the SiaMiner platform to pay for cloud storage.
SiaShield Wallet: For users that do not wish to host their data or storage with SiaMiner or other host providers.
While Sia is not the most well-known cryptocurrency in the space (that honor would have to go to Ethereum, of course), the project has generated a lot of interest and activity within the blockchain space.
Furthermore, this recent surge in demand for Siacoin should provide the coin with a much-needed short-term boost. As always, it’s important to maintain a healthy sense of skepticism when dealing with new cryptocurrency projects.
Nonetheless, it’s hard not to be excited about this potential digital asset opportunity, and Siacoin definitely has a lot of potentials to be a powerful long-term asset. I’m excited to hear your thoughts about Sia and Siacoin.
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