What is SiaCoin?
- What is the point of the coin?
- What problem does it address?
- What is its solution?
- How does it work?
- What is there to expect in the future?
- what are the cons?
- BlockWolf Summary
What is the point of the SiaCoin?
Sia is a decentralized storage platform. Sia users can store data in Sia’s decentralized platform by paying other users for their unused hard drive space. The idea is that users can store their data privately, securely, and cheaply without using a central server like Amazon or Dropbox.
What problem do they address?
Centralized data storage is expensive, can be vulnerable to hacks, and could undergo downtime. Old Decentralized data storage (like BitTorrent) do provide enough incentive for users to store or seed content for others.
What is their solution?
Sia enables users to share their unused hardware space and reward them with SiaCoin for storing other people’s data. Siacoin is cheaper to use than centralized services and it is more secure than centralized services because segments of data is stored in several decentralized bases that can only be accessed with a private key. The Sia blockchain only stores the contracts formed between its hosts and clients so it is not susceptible of being hacked and exposing data of its users. Unlike most cryptocurrencies, Sia already has a working product!
How does it work?
A storage provider (host) agrees to store a client’s data, and to periodically submit proof of their continued storage until their contract expires. The host is compensated for every poof they submit, and penalized for missing a proof. Since the proofs are publicly verifiable on the blockchain, network consensus can be used to automatically enforce storage contracts, which means that clients do not need to personally verify storage proofs; they can simply upload their file and let the network do the rest.
Storing data on a single host does not guarantee availability, so with Sia, data is redundantly stored across multiple hosts. If one host goes down, data will still be retrievable through another host.
What is the point of the SiaCoin?
SiaCoin is used to reward hosts for offering their hard drive space and it is used as collateral so that hosts respect the terms of their storage contracts and do not prematurely stop storing data for their clients.
What is there to expect in the future?
It may be cheap, but Sia’s user experience is unpleasant. Additionally, the platform only supports file retrieval from the same computer that uploads the original files, which limits the use of the platform. Once file sharing is enabled in the future, Sia will be more useful.
Blockwolf appreciates how Sia has a working product that can cheaply store files in a secure network that is less prone to downtime, but its current product offering limits its use case. If Sia is able to enhance its platform by offering file sharing, Sia could be much more useful.
The Sia app is easy to use once you have it all set up and you understand what to do but synchronizing takes multiple days if you do not use a bootleg file. Additionally, the app is not intuitive. It would be hard to use Sia without seeking assistance. Compared to other dapps Sia shows a lot of promise, but in order to compete with top data storage providers it will need to become faster and more intuitive.