Many projects in the crypto world concentrate on allowing users to access economic services. Some projects strive to solve the scalability issues. This post is all about one such crypto called Siacoin (SC). Let’s take a look at it in more detail.
What is Siacoin (SC)?
According to its website, Siacoin (SC) is the utility token of the blockchain platform Sia. It is a decentralized cloud storage platform. It produces a data storage marketplace that is cheaper than traditional cloud storage providers.
In other words, Siacoin is the coin of the Sia blockchain that provides the hosting space. Consumers who lease the hosting space from Sia utilize the Sia network’s hard drive space and spend Siacoin in trade for the capability to save files and objects. The Sia blockchain utilizes an arrangement of smart contracts dubbed ‘File contracts’ which maintain the record of all the incoming and outgoing information on the servers and their locations.
According to its whitepaper, Sia is a decentralized cloud storage platform. The purpose is to challenge the current storage solutions, at both the P2P and business levels. Instead of leasing storage from a centralized vendor, counterparts on Sia lease storage from each other. Sia itself holds only the storage contracts created between parties, specifying the stints of their agreement. A blockchain, just like Bitcoin is employed for this goal.
How does Siacoin (SC) work?
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Files stored on the Sia network are slopped into 30 encrypted parts, with each part transferred to a special host for monotony. The arrangements between uploaders and hosts are registered on Sia’s blockchain and executed by utilizing smart contracts. Siacoin serves as the mechanism of payment on the system, with tenants paying hosts by using SC coin, and hosts using SC as collateral.
As mentioned, the Sia network permits users to save data in a decentralized method. Users upload files by paying the network by utilizing Siacoins. The expenses are considerably lower than the prices which standard cloud storage demands.
Further, users can upload and store multiple files at once without provoking any disturbance to the working of the network. The following figure is displaying its storage use:
Sia utilizes smart contracts to handle every function in the blockchain. Smart contracts are collections of codes that allow a blockchain to be decentralized. These smart contracts of the Sia network are called file contracts. These file contracts normally survive 90 days. After 90 days, the Host must confirm that the data is being saved, which is accomplished by transferring a small portion of the host’s information. This proof instrument is called as Proof-of-Storage (PoS).
Sia utilizes Proof-of-Work (PoW) mechanism. Therefore, the Siacoins can be mined by users. The mining operation demands the nodes to confirm a transaction for them to be awarded Siacoins by the blockchain. It is also worth mentioning that Sia is open source, implying that anyone can utilize the information and recommend changes.
Siacoin (SC): Can It Solve The Scalability Problem?
Sia incorporates a peer-to-peer network with blockchain technology. In the case of Sia. users ought to download and confirm the whole blockchain before they can begin uploading. After verifying, users configure a rental agreement that bears hosts on the network. The Sia system has a thoughtful method of offsetting accounts by employing smart contacts, and it is also how it has worked to crush the scalability problems that are impacting other blockchains. Rather than constructing a fresh transaction every time a host is disbursed and an accumulative contract is formed between the host and the user.
This is how Sia deciphers scalability. As mentioned earlier, the Sia blockchain is just like Bitcoin’s blockchain, only with changes that allow it to store and transfer files more effectively. As the files are distributed among various nodes, no one node can use them. Even if they obtained the private key of any renter, all they would hold is a trace of the file saved.
This shows that Sia can deliver an invariably increased uptime like the Bitcoin blockchain while also assuring users don’t have to entrust each other to keep files and utilize the network. Renters are also secured from the potentially vulnerable hosts by demanding proof of storage. This forces hosts to verify and demonstrate that they are online and correctly maintaining the renter’s data.
Siacoin (SC) Price Prediction
At the time of writing this, the Siacoin price is sitting at USD 0.013946. The market cap of SC is USD 695,438,375 with a circulating supply of 49,865,782,992 SC coins.
Always remember that the crypto markets are very unreliable. With particular advancements, Siacoin traded at the price of $0.005 in January 2021. In March, the price has driven to yield a two-year high at $0.06292. Yet, bulls fell to maintain the price movement for the long term. Additionally, the asset has descended to sustain $0.01065 thanks to the May market crash.
Siacoin expected a new price of $0.045 during the beginning of 2022. The price might probably increase if the market concentrates to put money into the decentralized cloud storage platforms. By the end of 2022, Siacoin might touch the utmost of $0.1 spot. With the moderate purchase and sell demands, the asset could touch $0.075. On the opposite, the SC price could also descend to the base support of $0.042. Siacoin can be bought on the cryptocurrency exchange Binance.