What is Siacoin? The Full Guide: Storage & Mining

What is Siacoin?

Siacoin is the token of Sia, a decentralized, distributed cloud storage system built on the blockchain (SC). The crucial element for us is how it differs from other cloud storage services like Microsoft OneDrive, Amazon Cloud, and Google Drive.

Let’s show you what sets Siacoin apart from other storage options.

Sia is a software that allows everyone who uses the platform to rent unused storage to those who want it. It is a P2P (peer-to-peer) decentralized blockchain network; hence there is no place for a third party.

Let’s get into how it works: Stored files in Sia are divided into thirty segments, so each one of these pieces is encrypted and saved on one hard disk. That way, users can be sure about the safety of their data.

Another significant advantage to this decentralized system is its low price rate compared to other cloud services. Google, Microsoft, and Amazon are currently the go-to cloud services for users, but that could soon change. Concerns about security risks and frustration over high storage prices could soon spell the end for these storage giants.

What is the purpose of Siacoin?

The Sia project’s primary objective is to become the “backbone storage layer of the internet,” and it sets about that by using a unique renter and host payment system. In this host-renter arrangement, only Siacoin (SC) itself is accepted as payment.

As a result, the price of Siacoin increases simply because of customers using the product, resulting in a significant profit for the holders.

How does it work?

As I explained before, data within Sia is divided into thirty encrypted segments, each of which is available for active network nodes.

None of the nodes have access to the data, and even if they had access (with private keys held by the owner), they could only read one of the thirty parts. This is great for user information security, as the design makes it so hacked information is virtually useless to the hacker. The network works as a decentralized blockchain so that the responses will be faster.

The decentralized design prevents large-scale hacking leaks like we often see from centralized storage services. There are further advantages for Siacoin storage hosts. Hosts also have the power to increase their available capacity and facilities, which come with their services. They can even ban unwanted renters.

How much is the Circulating Supply of Siacoin?

To this day, the exact amount of circulating supply of Siacoin is 51,444,112,992 SC. Because there is no maximum supply limitation, we can mine an infinite amount of Siacoin. Miners create new blocks and get rewarded with Siacoin for each block through the Proof of Work (POW) protocol.

What Are the Main Features of Siacoin?

Concluding all the points mentioned above, there are three main benefits of using Siacoin: Privacy, Affordability, and Security. But this is what any storage company claims, so let’s discuss what makes Sia unique.

Privacy policy:

Every piece of information processed in the Sia network is encrypted. No one can access this data; you are the only person controlling it. It makes Siacoin different from other storage companies, because they have complete access to the files stored in their clouds.

Affordability:

The system’s flexible and affordable pricing is its second distinguishing feature. The system does not set a preset price; hosts and renters negotiate the precise amount in file contracts.

Currently, a terabyte of storage which would cost you $23 per month with Amazon only costs $2 with Siacoin. With a price point like that, and with costs for conventional storage services only increasing, it’s really no wonder that users are migrating to Siacoin.

Security:

I have to reiterate the benefit that this decentralized network offers. Each segment is processed and encrypted; therefore, it is less vulnerable than a centralized blockchain. Siacoin also offers an enormous amount of cloud storage. By its design of breaking user data up into unreadable smaller segments, it safeguards user data in its entirety.

Which companies offer Siacoin storage?

Many active companies use this particular technology of Siacoin to develop their customer-related services. Some examples of companies who offer Sia-based storage are Filebase, Goobox, Pixeldrain, and Skynet. We’ll introduce each one.

Filebase:

Compatible with Amazon S3’s data storage platform, Filebase is a cloud storage solution.

This application uses Sia as a tool to preserve essential data from Amazon using API; being independent of Amazon’s authority over the data is crucial. One of the largest Sia-based storage providers, Filebase offers its services in both Premium and Free packages with the same level of security.

Goobox:

Goobox is another popular cloud storage service. Goobox is a free file-sharing service that offers excellent security and lets users transfer files up to 4 gigabytes.

Pixeldrain:

The text and file sharing service Pixeldrain enables users to share files quickly and easily.

Skynet:

Lastly there is Skynet: a new service developed by Sia to complement blockchain functionality. This project’s primary objective was to create a content delivery network (CDN) for general application developers and all users worldwide. After this project’s introduction in February 2020, everyone can utilize it for free.

Who are the founders of Siacoin?

David Vorick, majoring in computer science at Rensselaer Polytechnic Institute, first thought up the idea for Sia in mid-2013. College friend Luke Champine became interested in the concept when Vorick presented the idea at a HackMIT hackathon in September 2013. Afterwards, the two exchanged emails and teamed up to launch the project.

The undertaking was given the title Sia in honor of the Egyptian deity of perception and officially launched in 2015. The project took off when Jim Pallotta, a multibillionaire investor and the creator of Raptor Group, was introduced to Vorick and Champine through the entrepreneurial center of their college. Intrigued with the potential, Pallotta invested in the project.

To formally handle the development of Sia, Champine and Vorik founded the company Nebulous Inc., which has since changed its name to Skynet. This all transpired just before the two graduated from college.

What is Siafund?

You are well-versed in Siacoins, the utility token that powers Sia’s smart contracts. The other token on the Sia network is Siafunds. What about them?

Siafunds are a type of token used for revenue sharing on the Sia network, with holders receiving a 3.9 percent fee from each storage transaction. Currently, the Sia core team owns about 85% of the Siafunds.

On the network, 3.9 percent of each funding source’s total share is set aside for Siafund owners when contracts are finished. Sources of funding for contracts include:

• fees for storage tenants
• Costs of renting bandwidth
• Guests’ property

The sum reserved is then divided equally among all Siafund holders after a contract.

How many Siafunds are there?

There will only ever be 10,000 Siafunds issued, all created when the Sia software was introduced in 2015. The revenue per Siafund rises proportionally as the number, size, and value of the contracts on the Sia network rise because the number of Siafunds issued is fixed.

Nebulous, Inc. initially owned all 10,000, but they sold several Siafunds to finance development over time. Nebulous holds about 8,600 as of April 2019, and the remaining ones have been distributed to outside parties.

How can I mine Siacoin?

When mining Siacoin, as with other cryptocurrencies, it’s important to choose the right hardware and compatible software. The most helpful hardware and software needed for mining Siacoin profitably are listed below.

Siacoin mining hardware:

While some cryptocurrencies can only be mined using graphics cards (GPUs), Siacoin, like Bitcoin, uses specialized hardware components known as ASIC. So, using an ASIC device is a good idea if you want Siacoin mining to be profitable.

The Obelisk SC1 ASIC hardware, which has the processing power of 100 GPUs, was created specifically for mining Siacoin in 2017. Obelisk SC1 uses the Blake2b algorithm, has a maximum power consumption of 500W, and can mine Siacoin at a rate of 300 GH/s.

Obelisk’s ability to function at room temperature and lack of need for external cooling are both significant advantages. If you’d instead prefer to mine Siacoin using a GPU, you can use an Nvidia GPU, such as the GTX1080.

Siacoin mining software:

As you likely already know, you must consider the hardware you intend to use when selecting the software for Siacoin mining. Fortunately, there are lots of Siacoin mining programs available on the market.

Unquestionably one of the best is Marlin Miner (from SiaMining), which works with AMD or Nvidia GPUs. Here is the complete list of GPU equipment software, arranged by programming language:

For Nvidia Miners with CUDA language

• Sia-CUDA-Miner
• Sia-CUDA-Miner fork
• Ccminer
• Marlin

For AMD Miners with OpenCL language

• Sia-GPU-Miner
• gominer
• Marlin

Mining Siacoin alone vs. in a mining pool

The question of whether to mine cryptocurrency alone or with a mining pool arises when mining cryptocurrencies. Siacoin can be mined independently, but it is more convenient to join a mining pool to share sources with different users, thus improving the profitability of the mining activity.

Be aware that if you join a mining pool, your rewards will depend on how much you invested in resources. There are numerous mining pools available to mine Siacoin, and the top ones are listed below:

• F2Pool
• Luxor
• SiaMining
• Antpool

Is there any limit to the amount of Siacoin we can mine?

No, there is not. Siacoin network is based on the Proof of work algorithm, so there is no limitation on the maximum amount of this cryptocurrency.

Where should we store Siacoin?

A Siacoin token is not an ERC-20 standard token. There is a cap on the number of wallets you can use to store SC. Here, we’ve chosen the top wallets for conveniently and safely storing your SC.

The crypto market is financially dangerous if you don’t have enough information and experience. If you ask anyone working in the crypto market, they will tell you to be careful to safeguard your assets.

The importance of a safe and secure wallet cannot be overstated. Below is a list of trustworthy wallets where Siacoins can be stored.

SIA.UI

An official Siacoin wallet is Sia.UI. The Sia blockchain’s creators, Nebulous, created a desktop wallet. The official website allows you to download the wallet directly. This wallet is compatible with Linux, macOS, and Windows.

Sia.UI lets you rent out or sell network storage space and store your coins. You can send coins to any other Sia user through this wallet, giving you access to your balance and transaction history. Because it is a full-node wallet, you must download the entire blockchain for it to work.

Ledger Nano S Wallet:

One of the top hardware wallets available is the Ledger Nano S. It supports numerous other cryptocurrencies besides Siacoin. It is a cold wallet, meaning it is not connected to the internet – and therefore, hackers cannot access your private keys.

You must click the wallet to your computer to perform a swap. Ledger Nano S has a bit of a learning curve, but it’s an excellent wallet.

Sia Android Wallet

Even though the wallet is called the Sia Android wallet, it was not created by the Siacoin development team. Because it is the only mobile app for storing Sia, the wallet is well-liked by Sia users. Sia Wallet for Android is a full-node app, which means for the wallet to function, you must download the entire blockchain.

The wallet has limited storage space. Because of this, renting storage space is not an option like it is for the majority of other wallets. The wallet is decentralized, and all user information and private keys are secure.

SIA Cold Storage (A Wallet Generator)

Sia cold storage is actually not a waller, per se. It generates wallets and is used to produce the addresses and seeds for a Sia wallet. This feature can be used without downloading the blockchain. An offline program is called Sia Cold Storage.

It employs a technique called “air gapping,” meaning the device is physically separate from the networked computer that accesses the internet. It’s another layer of security that some users prefer for their cryptocurrency storage. Users can send and receive coins, participate in mining, and safely share their wallet addresses.

It can be integrated with the Sia.UI wallet to recover the seed code. The Sia Cold Storage team advises downloading and using it on a clean work computer. The computer must be virus- and malware-free to achieve the highest level of security for your money.

SIA Central Lite Wallet

You can store your coins securely with Sia Central Lite, a web interface that can synchronize with full-node wallets. Using this tool, you can create Ledger Nano S wallets, Watch-only wallets, and 29-word seed wallets.

Where can I buy Siacoin [SC]?

Siacoin is available on several cryptocurrency exchanges, including Binance, OKEx, Huobi Global, and Upbit. On spot markets, it can be exchanged for fiat money like the US dollar and the South Korean won, cryptocurrencies like Bitcoin (BTC) and Ether (ETH), as well as the stablecoin Tether (USDT).

What is Siacoin's Price Prediction?

Here, we’ve given a thorough technical analysis to forecast Siacoin’s growth and price. We projected the most likely outcomes and compiled them into this chart.

It has been fifteen months since Siacoin touched its all-time high (ATH) with a price of $0.06400. There has been a double zigzag correction ever since. Right now, the price is in a heavy support zone, which indicates the high demand rate, and we can expect a price hike up to resistance line 1 and then a correction to the rich support zone.

We then expect the price to complete its second attempt to increase, break through the moving average of 200 days, go past the resistance zone (which shows the end of Siacoin’s correction movement), reach its all-time high, and possibly even reach higher prices beyond that.

Another scenario predicts the price to be stuck in a ranged trend between the resistance and heavy support zones. There is also the possibility of breaking the rich support zone downward. These scenarios have several mitigating factors, such as the circumstances of the cryptocurrency market, smart money, the decision-making of the Siacoin team, and their developments.

FREQUENTLY ASKED QUESTIONS ABOUT SIACOIN (FAQ)

When was Siacoin founded?

David Vorick and Luke Champine founded Siacoin in 2015.

What is Siacoin used for?

Users make payments using Siacoin to the hosts storing their data. Sia can continue to be decentralized because of this peer-to-peer matchmaking because no organization is storing the data.

How many SC coins are there?

The number of Siacoins that can be mined has no upper bound.

Is Data on the Sia Network Secure?

Data hosts are rewarded financially for offering enterprise-level service. Additionally, files are split into 30 segments before being uploaded to the Sia network, where they are then distributed globally. As a result, the data is kept secure because there isn’t a single point of failure.

How To Buy Siacoin?

You’ll be happy to learn that purchasing Siacoin is relatively easy if you’ve ever been unsure how to get started. Search for a cryptocurrency exchange that accepts Siacoin (SC), like Kriptomat, and sign up for a free account there first. After creating an account, you can place a buy order and purchase Siacoin at a price that sounds good for you.

How To Sell Siacoin?

Selling Siacoin SC at Kriptomat is just as simple as buying it. Put in a sell order to sell SC at a price that will make you a profit over what your original buying price.

Exactly how can I add Siacoin to my Trust wallet?

Include your Trust wallet address in the recipient address field when you buy SC on LetsExchange. The coins you have purchased will be delivered right to your wallet.

Can you store Siacoin on Ledger?

You can keep Siacoin on a Ledger Nano S.

Is Siacoin a good investment in 2022?

Project stability and potential are strong. The team is always implementing new functionalities, and SC offers potential as an investment.

Wrap up:

Siacoin is one of the biggest platforms for storing files based on a peer-to-peer cloud. Even though Siacoin has many competitors in this field, considering its quality and performance, it’s demonstrated its usefulness both as a consumer product and as a potential investment.