Review on Siacoin by Azad Aliyev

Siacoin (SC); It is the native utility token of Sia, a blockchain-based distributed, decentralized cloud storage platform. Sia acts as a secure, reliable marketplace for cloud storage where users can rent access to unused storage. Agreements and transactions are implemented through smart contracts, and Siacoin is a medium of exchange for paying for storage on the network. The main target of the project becomes “the backbone storage layer of the internet”.

What is Siacoin (SC)?

Siacoin (SC); It was first conceived by David Vorick in mid-2013 while studying computer science at Rensselaer Polytechnic Institute. He discussed the idea via email with Luke Champine, a college friend who was involved in the development of the project shortly after Vorick presented the concept at a HackMIT hackathon in September 2013. Vorick and Champine are introduced through their college's entrepreneurship hub to Jim Pallotta, a billionaire investor who invested in the project and founder of the Raptor Group. Shortly before graduating from college, the two joined Nebulous Inc., which was renamed Skynet to officially handle Sia's development. company merged.

Siacoin (SC) release date is 2015. According to its whitepaper, Sia's long-term goal is to compete with existing storage solutions. This view puts it in direct competition with major cloud storage providers such as Amazon, Google, and Microsoft. Sia offers competitive storage rates due to its decentralized nature. Files stored on the Sia network are divided into 30 encrypted partitions, and each partition is uploaded to a unique host for redundancy. Agreements between installers and hosts are recorded on Sia's blockchain and implemented using smart contracts. Siacoin acts as a payment method on the network, with tenants paying landlords using SC and landlords locking SC as collateral in smart contracts. Skynet, the company behind Sia and Siacoin, announces several products built on top of the Sia network, including SiaStream, a cloud-based media streaming application, and the Skynet network, its flagship content delivery and file sharing network. The company receives several rounds of funding and grants, including Bain Capital Ventures, Paradigm, and INBlockchain. Additionally, every storage-related transaction on the Sia network is subject to a 3.9% fee, which is distributed to holders of the company's second cryptocurrency, Siafund. Skynet holds about 85% of all Siafund.

The country of Siacoin (SC) is England. Siacoin does not have a maximum supply. As it is a utility token designed to be used to power transactions through smart contracts, the project states that there must be an unlimited supply to effectively match the unlimited amount of data that can be created and stored. The new Siacoin is promoted as mining rewards through the Sia blockchain's proof-of-work mining algorithm. The mining reward starts at 300,000 SC and decreases by 1 SC for each mined block until it reaches 30,000 SC in July 2020. The block reward now stays at 30,000 SC forever. Siacoin is removed from the ecosystem when hosts lose their tokens or their collateral is not returned due to bad actions. In the future, the development team plans to introduce a proof-of-burn mechanism that requires hosts to burn a small percentage of their revenue to prove they are genuine and bona fide. The Sia development team mined about 100 blocks (about 30 million SC) before publicly releasing the mining algorithm. The platform's team and investors are reported to own less than 0.1% of the total Siacoin supply.

To get Siacoin (SC), it is necessary to create an account on cryptocurrency exchanges. Siacoin can be purchased on crypto exchanges such as Binance, OKEx, Huobi Global, and Upbit, among others. In the spot markets, fiat currencies such as the US dollar and South Korean won can be traded against cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), and the stablecoin Tether (USDT).

What Infrastructure Does Siacoin (SC) Use?

The Siacoin (SC) infrastructure is secured using a proof-of-work consensus algorithm. This means that miners compete with each other to add new blocks to the blockchain, and the majority must approve a record for it to be published. Vorick, co-founder of Sia, argued in June 2017 that proof-of-work is the best way to secure the network, as it attributes the ability of a malicious actor to attack the network to large energy requirements and hardware costs. According to Sia's development team, the fact that hosts must provide collateral to participate in the network's operations lessens any incentive for bad actors. Additionally, it draws attention to the fact that it divides the uploaded data into 30 segments and then distributes it worldwide, as an assurance that its network cannot be shut down except in a major natural disaster or geopolitical event. And as long as 10 out of 30 hosts survive an attack on their network, files can still be retrieved.

Unlike traditional cloud-based service providers, Siacoin encrypts and distributes your data across the entire network. In this way, the control of your data is directly in your hands from companies or third parties. Moreover, since you have control of all private keys in your possession, any third party can access your data only with your consent.

Sia platform is 90% cheaper compared to other cloud storage platforms we know. For example, 1TB data storage in Amazon S3 costs $23 per month, while it is possible to store the same size data in Sia for $1 or $2 per month. Especially when compared to the crashes and vulnerabilities of traditional cloud-based services, Sia's efficient and secure storage services allow most people to use it in decentralized data storage projects.

The disadvantage of SC Coin is that it creates a feeling of uncertainty on its investors as it has very strong competitors. While a certain group fully trusts him, a certain group approaches him more distant.

SC Coin exists with the Sia network in competition with brands that offer cloud storage services such as Amazon. In this context, the success of the network can affect the SC Coin price at any time and the competitors are quite strong.

Virtual wallets may be at risk of network attack. For this, it is preferable to store it offline.