What is Siacoin?
Siacoin is a decentralized platform for cloud storage that is secured by the blockchain technology. It is a cloud storage platform similar to Google or Dropbox but uses blockchain for payments. In a bid to remove the dependence on data centers, Sia combines huge amount of unused storage space and connects it with a blockchain to make encrypted and decentralized cloud storage. In simple terms, you can rent the extra storage space on your PC on the Sia network and get paid in Siacoin. If anyone wants to use Sia storage, they will have to pay Siacoins to the host. The host will keep your files for a fixed time after which he/she will be paid in Siacoins. It must be noted that the host will not get paid if the files are lost. The Sia storage platform was founded by David Vorick and Luke Champine in 2015.
Features of Siacoin
Siacoin’s payment channels technology enables payments flow between the host and the renters. The payment channel technology is similar to Bitcoin's Lightning Network. As payments between renters and hosts takes place off-chain, it helps in increasing network efficiency and scalability. Siacoin currency is only accepted on the Sia platform as it is specifically designed to facilitate decentralized payments. All the payments on the Sia network happen only in Siacoins. The first block will have 3 lakh coins minted. This number will decrease by 1 coin per block, until a minimum of 30,000 coins per block is reached.
Where to buy Siacoin
In order to buy Siacoin, one must own a cryptocurrency like Bitcoin. The Siacoin is listed on four major exchanges like Bitsquare, Bittrex, Poloniex and Shapeshift. The total circulation of Siacoins is capped at 2,779,530,283.
The price of 1 Siacoin at the time of writing this article was $0.019272. Siacoins can be stored in desktop and paper wallet that can be downloaded from company’s official website.
As Siacoin uses Proof of Work (PoW) technology, the coins can be mined. The mining process is similar to that of Bitcoin.
Siacoin Price Trends
Risks involved with investing in Siacoin currency
Siacoin currency is limited to the Sia platform and just like other cryptocurrencies, it is volatile and involves risk. Hence, investing in mutual funds instead could be a safer option.