Bybit Learn | In-depth Explanation: What Is Siacoin (SC)?

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Bitcoin is the world ’ s most well-known cryptocurrency. But Bitcoin merely offers decentralize transactions. Ethereum ’ s network was the first to provide diverse decentralized services. One of these services is data memory. Data storage is one of the necessities of the twenty-first century, as smart devices become an inseparable contribution of company. Some cryptocurrencies offer decentralized data storage, changing the overture behind it once and for all. One of the biggest cryptocurrencies to provide such a service is Siacoin. Siacoin is, in fact, a utility nominal and the native nominal of the Sia network. Like every cryptocurrency, Siacoin has had its ups and downs in terms of price. recently, Sia has been growing at a coherent pace. But its price is not the alone guise for traders to consider before engaging with this coin. It is possibly its utility that makes it alone and worthwhile. As such, let ’ s front at the winder components of Siacoin so that you have a better sympathize of this cryptocurrency ’ s background .

What Is Siacoin?

Siacoin (SC) is the native token of the Sia network and serves as a utility token. It is one of the first cryptocurrencies built on the Ethereum network that offer decentralized cloud storage. Sia was created by computer scientists David Vorick and Luke Champine. It was initially announced in 2014, then revised and announced again in 2015. The fund for the Sia project came from Jim Pallotta, a billionaire investor. The name Sia is a citation to the ancient Egyptian god of perception. But what makes Siacoin unique ? The fact that it is decentralized gives Sia a find to potentially compete with the likes of Google or Amazon, which provide centralized cloud repositing. As such, the main goal of Sia is dethroning these centralized data repositing options and putting decentralized ones on the pedestal. In the same room that decentralized projects are built on top of the Ethereum network, SiaStream and Skynet work on the Sia network. SiaStream is the application that allows streaming media in a decentralized manner. Skynet delivers the column capacity of the network. As of now, Siacoins do not have a limited add, so their price might be prone to inflation. The reason for a boundless supply is that Siacoin is a utility nominal intended to benefit anyone who wants to join the network and use cloud storage. If Siacoin were to be limited, this would besides limit storing data on the Sia network by its users. As of May 2021, the circulating provision of Siacoin is 47.5 billion SC. According to CoinMarketCap, Siacoin debuted at $ 0.00004 in 2015. The price reached its all-time high in January 2018, at $ 0.09. In 2021, the price of Siacoin started increasing again .

How Does Siacoin Work?

As suggested, the Sia network allows people to store data in a decentralize manner. In club for users to store files, they need to pay the network by using Siacoins. The fees are relatively low, and are well lower than the fees which traditional defile storages requires. additionally, users can store many files at once without causing any trouble to the functionality of the net. recently, the storage used has been increasing by terabytes . Used repositing over the last 90 days as of April 2021. beginning : SiaStats so how does Sia achieve this ? Sia uses ache contracts to regulate every process in the blockchain. Smart contracts are sets of codes that enable a blockchain to be decentralized. The smart contracts which enable the functionality of the Sia network are known as file contracts. These file contracts normally last 90 days. After 90 days, the host needs to prove that the data is being stored, which is done by sharing a little share of the host ’ sulfur data. This proofread mechanism is known as Proof-of-Storage ( PoS ). After the host proves the data, which is added to the Sia blockchain, the host is rewarded with Siacoin. What makes the data storing summons of Sia much more effective than traditional cloud repositing is the decomposition of the files. Before a file is shared, the Sia network breaks down and encrypts the file into 30 parts so that uploading it is much easier. This besides maintains the stability of the network, and makes certain that the data storing work does not fail. storage proof and the breaking down of the data are made potential by Merkle tree engineering. A Merkle corner is besides known as a hash tree, whereby the data of each obstruct is linked with that of another in the form of a “ tree ” to ensure efficiency and security in the blockchain. But what if the server is offline ? Does that mean that the drug user storing the files can not recover and download his/her files ? The answer to that is the erasure coding  process. erasure coding enables the Sia network to store the file redundantly. Because of this, any 10 out of 30 segments of the bedraggled file are able to recover all the files that a exploiter stores. Judging by this process, even if 20 out of 30 hosts are unavailable and offline, you can hush access all your files. file contracts that last merely 90 days are renewed after a certain period. If the host goes offline after 90 days, and does not prove the store files, all the data is moved to another host to ensure the continuity of storing the files. This process is known as file repair. 

furthermore, even if the Sia network can not find a new master of ceremonies mechanically after the 90 days of the file contract, the exploiter is refunded for any unused Siacoin. Sia uses Proof-of-Work ( PoW ) as a consensus mechanism. Hence, the Siacoins can be mined by users. The mining process requires the nodes to verify a transaction in order for them to be rewarded with Siacoins by the network. Since the network ’ second supply is not limited, mining might not become as unmanageable in the future as it does in cryptocurrencies with a specify supply. It is besides worth noting that Sia is open source, meaning that anyone can access the information and indicate modifications. But Siacoin is not the merely nominal in the Sia net. Another keepsake that plays a vital function in the growth of the Sia network is Siafunds. Siafunds ( SF ) are considered security tokens. Their purpose is to serve as an bonus for more people to join the Sia network and begin to store data in cloud repositing. The owners of such tokens earn a gross of 3.9 % from every transaction conducted in the Sia store summons. This 3.9 % comes from fees that users pay, whether they are renter storage fees, bandwidth costs, or simply host collateral. The downside of this feature is that alone 10,000 SF are in circulation, which was deployed when the Sia network itself was launched. 8,000 out of these 10,000 available SF are owned by Nebulous, the Sia network team . Siacoins converted to Siafunds. source : support.sia.tech so what do all these processes achieve ? There are benefits that come with every one of Sia ’ south features. here are the main ones :

• Privacy
  • Since all the data is broken down and encrypted individually, it is very secure. The host that stores your data cannot access your files unless they somehow get a hold of your private keys. This provides complete control over your files with no risk of data breaching whatsoever. However, this is not the case with traditional cloud storage. The most relevant example would be the Cambridge Analytica scandal, when Facebook sold their users’ privately stored data to a British political consulting firm, Cambridge Analytica Ltd.
• Affordability
  • All the data you store is private, but storing it is also relatively cheap compared to traditional storing options, such as Google, Amazon or Microsoft. To illustrate, it costs $2 a month to store 1TB worth of data in Siacoin. Amazon requires $23 per month for the same service, Google charges $20, and Microsoft $24. The bandwidth costs are also extremely cheap with the Sia network when compared to those traditional options.

Data storing costs of Sia compared to traditional options. source : CoinCentral

• Security
  • Last but not least, decentralization increases the security of Sia, while the same cannot be said for centralized, traditional options. 

The Sia Blockchain 

so where does this information put Sia in relative to Bitcoin ? interestingly enough, the Sia blockchain and the Bitcoin blockchain are identical similar. In terms of their transaction processes, they have the same functions. In terms of consensus mechanisms, they both use Proof-of-Work ( PoW ). Both blockchains are very fasten and decentralized. even though the supply of Siacoins is not limited, and the issue of Bitcoins is limited to 21 million BTC, the mining process is calm alike for both of these blockchains. however, there are some distinct features of the Sia blockchain that make it unique. Besides the obvious fact that the Sia network offers data storehouse and Bitcoin ’ sulfur does not, they besides differ in terms of the algorithm they use. Bitcoin uses Secure Hash Algorithm ( SHA-256 ). This algorithm generates a 256-bit hashish, one of the strongest hash functions that exist so far. Sia, on the other hand, uses the Blake2b algorithm, which is based on BLAKE2. It generates a 64-bit hash, and its precedence is to increase the security of hash functions .

How Is Siacoin Used?

nowadays that we ’ ve covered what ’ south needed to understand the main theme of Siacoin and the network it resides in, let ’ s look at the chief platforms that Siacoin can be used for besides transactions .

Filebase

Filebase is one of the biggest storage platforms for which Siacoins can be used. It stores data in a secure, private and decentralized room. Filebase is the first platform to simultaneously support Sia, Storj and Skynet as fundamental storage layers. Filebase ensures a 3x redundancy for each segment of the files, making the files easily accessible to users even if hosts are offline. While Siacoins are necessity for storing files in the network, Filebase does not explicitly ask you to purchase and use cryptocurrency .

Skynet

Skynet is besides a decentralized storehouse platform. Every file uploaded to Skynet has a unique ID, which is known as a Skylink. Skylink serves as the file data ’ s hash, and it can be used any time to access or retrieve files in a Skynet Portal. All this is done in a decentralized manner, even though specific vantage points connect the user with the files .

Nextcloud

Nextcloud is another external storage application developed on the Sia network. It besides offers redundancy of charge segments, a well as a procure data repositing service. Sia is constantly update Nextcloud, and it is presently trying to make the Sia Nextcloud one of the best platforms to offer a user-host interface .

The Bottom Line

ultimately, Siacoin is one of the most underestimate cryptocurrencies in terms of utility. Its price may not experience rocketing highs due to its bombastic, unlimited add, but it has revolutionized how data is store on-line. Exploiting decentralized repositing offered by the Sia network could reduce the want for centralize memory options such as Google, Amazon or Microsoft. This is because it is much more expensive to use these centralized options. additionally, they do not offer the security system and privacy that the Sia network provides.

One thing is for sure : decentralized overcast storehouse may become one of the most critical features of decentralization in the dear future. therefore, with the new discover cognition in crypto, why not sign up to Bybit ?

reference : https://leowiki.com
Category : Economy