What is Siacoin and How does Siacoin work?

What is Siacoin? (SC)

Sia is a cryptocurrency software that allows any computer running it to rent out unused hard drive space to users looking to store files. 

Sometimes branded as an “AirBnB for hard drives,” Sia is similar to cloud storage solutions like those offered by tech giants Amazon or Google, only rather than trusting a company to manage and store their data, its users rely on software and a distributed network of global computers.

To accomplish this, files stored through the Sia network are sliced into tiny pieces, so only a small portion of each is stored on any one hard drive. The files are also encrypted, so network users can be confident their data is safe from unauthorized access.

Those looking to store files on another Sia user’s hard drive then pay for the privilege using Siacoin, the platform’s native cryptocurrency. 

As of 2020, Sia has a network capacity of more than 2 petabytes (2,256 terabytes), with roughly 333 node operators actively securing the network. It currently hosts some 766 terabytes of files.

How does Siacoin work?

Siacoin is the currency of the Sia network. Renters pay hosts in Siacoin to utilize their hard drive space, and hosts are paid out only after they’ve proven they are storing the file in question.

Sia achieves this functionality by using a form of smart contract called “file contracts,” which establish parameters of the host-renter relationship like price and uptime commitments. 

These contracts typically last 90 days and are automatically enforced by the network.

When a file contract is completed, the host must prove they are actually storing the data they claim to be in a process known as storage proof, which allows a host to prove the tiny portion of data they’re storing is actually part of the renter’s file. 

The host gets paid in Siacoin if that proof is added to the blockchain within a set time period.

Before files are uploaded and distributed to hosts, Sia breaks them into 30 pieces, each of which is encrypted. This ensures the network is not subject to a single point of failure.

The Sia software further uses a technology called erasure coding, which builds in redundancies to ensure a user can always access their files even if as many as 20 out of 30 hosts are offline.

#cryptowithsana #wazirxindia #wazirxwarriors #indiawantscrypto #blockchain #crypto #cryptocurrency #bitcoin #cryptography #btc #indiawantsbitcoin #ethereum #litecoin #dogexoin #wrxcoin #wrx #nischalshetty #techhelpinhindi #cryptobill #financialfreedom #cryptoeducation #indiakabitcoinexchange #buybitcoin #howtobuybitcoin

https://wazirx.com/invite/knpwmvnt