Siacoin is a reliable, decentralized data storage solution built on the blockchain. In this article, as Kriptokoin.com, “What is Siacoin?” We will answer the question. In addition, we will touch on other questions about the project.
What is Siacoin? What does it do?
Siacoin uses excess hard disk space to rent data storage space. It is a blockchain network that facilitates decentralized data storage. Sia storage providers can monetize their storage using Sia’s data storage marketplace. It can also earn rewards in the form of siacoin (SC), the network’s native utility token. While there are several blockchain-based data storage platforms available, Sia differentiates itself by prioritizing the highly decentralized nature of its infrastructure above all other factors.
What is SC coin?
SC coin is the native token of Siacoin. Consumers pay for data storage using siacoin. In addition, providers earn siacoins in exchange for data storage services. Siacoin is based on a PoW consensus mechanism. This means that siacoin is minted by miners as a block reward. There is no limit to the supply of Siacoin. It is planned to increase indefinitely as new blocks are mined to scale with a theoretically unlimited amount of data that can potentially be created and stored. The original block reward for the first mined block on the Sia network was 300,000 SC, a decreasing amount of one SC token with each new block until reaching a minimum block reward of 30,000 SC per block in July 2020. The block reward is set to stay at 30,000 SC permanently.
How does Siacoin work?
Sia allows anyone to make money by renting excess storage capacity in Sia’s blockchain-based data marketplace. Storage providers and customers simply need to enter smart contracts that define what data is stored, for how long, and at what price. Smart contracts are then stored and implemented on the Sia blockchain. Thus, it benefits from the immutability and transparency provided by blockchain technology. Sia states that it does not store customer data and that the blockchain is only responsible for storing smart contracts between peers.
Contracts between providers and consumers also require the storage provider to demonstrate at regular intervals that it actually supports the agreed-upon data storage requirements. Providers are compensated and penalized for missing evidence each time they submit Evidence of Retention. These periodic Proofs of Retention can be publicly verified via the blockchain. Therefore, it does not require users to personally verify the evidence, as the network itself is responsible for verifying them.
When data is uploaded to Sia, it is automatically encrypted and divided into 30 parts. It is also sent to various storage providers around the world for redundancy. Individual data storage providers receive only a fraction of the encrypted data. Therefore, they are prevented from viewing, modifying or tampering with them. Similarly, Storage Evidence, which data storage providers must periodically provide, comes in the form of encrypted hashes that do not reveal what the original data was, but only reveal that the data storage providers have this original data.
What is Siacoin? How to get SC coins?
Siacoin is currently traded on numerous cryptocurrency exchanges. People who want to invest in the project should open an account in one of the exchanges where the project is traded. The exchanges where Siacoin is traded are listed as follows: Binance, OKX, Bybit, MEXC. Users who want to invest in the project should open an account on one of these exchanges.
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