Cryptocurrency Siacoin (SC) – overview and description
By 2020, the so-called cloud data warehouses have tightly entered our lives. Instead of the once familiar disks, flash drives and external hard drives, now you can store any information somewhere in the data centers of some company.
Large corporations such as DropBox, Amazon, Google and Microsoft have tightly occupied this market and it is really difficult to compete with them. But the market does not stand still, and companies appear that offer a completely new approach to data storage.
In this article, we will talk about the Sia decentralized cloud storage platform and its cryptocurrency Siacoin (SC). It offers the largest, fastest, safest, and most importantly – the cheapest way to store data.
What is SiaCoin cryptocurrency
At the same time, a system based on a public blockchain works, with the help of which transactions, contracts and evidence of the safety of content are checked.
SiaCoin cryptocurrency is required to pay for any services within the network. That is, any user who has an SC on their account can rent a seat from the host. This is done through smart contracts.
It turns out that the SiaCoin network consists of two elements – hosts and users, or, if simpler, service providers and customers who want to use the storage. The former provide a place for files on their device, for which they receive payment in the form of SC.
The SiaCoin ecosystem takes into account the interests of both parties. Hosts set prices themselves, advertise themselves and make compensation in case the data is lost. They may also refuse to post files if they doubt their nature. In general, there can be any reason for refusal.
And customers, entering into a transaction, can prescribe a fine for the host in case of data loss. The user can also make copies of his content and place between different hosts. This provides added reliability. Note that customers have the right to stimulate hosts, paying them extra for reliability.
Client and Host Relations
After the conclusion of the contract, the client data is stored on the hard drive at the host. But the data on the contract is in the SiaCoin cryptocurrency blockchain itself and it will not work to lose it.
This ensures security and guarantees the fulfillment of obligations under the transaction by both parties. SiaCoin cryptocurrency is built on an open blockchain with protection against changes, which means that anyone can view it at any time.
The SiaCoin ecosystem is very interestingly developed, as are the relationships between users. So, if the client does not want to pay too much, then he can choose a not too reliable host. Everyone here has its own reputation by which you can easily find a suitable repository.
As for smart contracts, they are used to determine the cost of services, the duration of the agreement between the host and client, and even the frequency of providing evidence of the functioning of the store.
The user creates a contract and transfers funds to it in the form of SiaCoin cryptocurrency. And every time he sends files to the storage, the money is debited from the balance of the contract and transferred to the host account. Upon completion of the contract, if funds are left on the client’s account, they will simply be returned to his main wallet.
Looking ahead, I must say that the emission of SiaCoin is unlimited. But the Proof-Of-Burn mechanism, which obliges the host to burn part of the profit to access the smart contract, saves. This is also one of the ways to raise the rating – the more cryptocurrencies burned, the higher the trust of customers.
Cryptocurrency mining SiaCoin
It is immediately worth noting that it is possible to mine SiaCoin cryptocurrency. And, most surprisingly, it is quite profitable, despite the low cost. Cryptocurrency mining works on the Proof-Of-Work system on the Blake2b cryptocurrency algorithm.
As of the beginning of July 2019, the reward for the block found by the miner is 85 843 SC. And with each block mined, the reward is reduced by one coin until it reaches 30,000 SC. After that, the reward will be fixed. Coin issue now stands at 41,315,510,910 SC. At the same time, the reward for the first mined block was 300,000 SC.
Interestingly, mining SiaCoin using powerful mining cards is possible, but the maximum hash rate, of course, is issued by ASIC. And there is one important point. Obtaining a coin is profitable with the help of ASICs from Obelisk, one of the founders of which is Sia co-founder David Warwick.
Other ASICs, for example, from Bitmain or S11 SiaMaster, after a hard fork, became not relevant for SC mining. Of course, this can be called monopolization of the market, but no one is struggling with the GPU, the main thing is to have a sufficiently powerful video card. But mining on the processor is a completely disadvantageous occupation.
Obelisk ASICs are sold in two versions – SC1 and GEN 1. They differ in hashrate and cost. Their capacity varies from 550 to 750 Gh / s. At the same time, on the Internet you can find a version called Obelisk SC1 Dual, which produces 1.1 Th / s. The cost of such miners is from $ 3,000 to $ 7,000.
Interestingly, the Dual version is more expensive than the usual one at only $ 1300, but, based on the calculator on the WhatToMine website, it beats off several months faster.
As for mining programs, everything is simple. All the necessary information can be found on the Siacoin website. The official miner is Siacoin Miner.
Note that, as mentioned above, it is possible to extract SC using a GPU, but it all depends on the cost of electricity. Outdated video cards give out a weak hashrate, which is why mining on them becomes unprofitable.
Where to buy and how to store
At the moment, SiaCoin has firmly established itself on the most popular cryptocurrency exchange exchanges – Binance, HitBTC, Bittrex, Upbit, Poloniex, OKEx, Huobi and others. At the same time, 22% of the total volume in 24 hours – $ 591,866 – falls on the first indicated site.
Accordingly, you can buy SiaCoin cryptocurrency on almost any of the top exchanges. But with regard to storage, then trusting such sites with large amounts of money means putting them in storage in the wrong hands.
To store SiaCoin, there is a special wallet called Sia UI, which is available for Windows, MacOS and Linux. Note that downloading can take up to a day, and largely depends on the speed of your Internet. However, there is a life hack – if you download not to the computer itself, but, say, to an external SSD, then the process goes much faster.
Sia has not released anything for smartphones yet, but such plans are available. It is also planned in the future to integrate SC into the Ledger Nano S hardware wallet.
Pros and cons of coins
- A good alternative to conventional cloud storage (DropBox, Amazon, Google and so on);
- Quite a profitable mining in 2019 with the help of ASIC, even compared to top cryptocurrencies;
- You can earn money on SiaCoin not only through mining and ups and downs, but also by becoming a host that provides storage for rent.
- Unlimited emission. True, the Proof-Of-Born mechanism helps to combat this – each time the host burns about 4% of its profit;
- The network hashrate is supported by two powerful mining pools. Because of this, decentralization suffers, as well as an increased risk of attack of 51%;
- While SiaCoin can not compete with the giants of the market;
- The implementation of the project roadmap is far from complete.
Although at the moment the SiaCoin cryptocurrency cannot boast that it really already competes with the giants of the market, in the future the project can show itself. But you also need to take into account the pressure from blockchain competitors, for example, the Storj cryptocurrency, which is currently better known than SiaCoin. True, for this it is necessary to complete all the points of the multi-year plan described in White Paper. The Siacoin team really works tirelessly, as evidenced by the monthly reports published on the official website.
And if the blockchain technology solves the problem of data centers and security, then attracting customers and building a reputation lies entirely with the development team. However, when people realize that it is possible to make money using SiaCoin cryptocurrency, even having an old personal computer with an Internet connection, the popularity of the platform will definitely go up.
As for investing in a project, this is probably not the best solution. But the reason is simple – an ever-growing emission together with inflation simply will not make money. And based on the data for the last year, no tangible growth is expected. Of course, if the developers do not immediately release all of their developments into the light.