Sia is a split up cloud storage platform that aims to combat the issues of conventional cloud services by utilizing the blockchain.
Siacoin = Crypto Storage
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Sia is a decentralized cloud storage platform that aims to combat the issues of conventional cloud services by utilizing the blockchain. With centralized platforms, users have to trust a central authority with their data and information. Sia provides full control of one’s digital property and data is fully encrypted.
- How it Works
- Siacoin Currency
How it Works
Contrary to other cloud services on the market, each file segment uploaded to the Sia platform is encrypted. The encryption process is done via the TwoFish algorithm, which is an elaborate symmetric key block cypher, with a block size of 128 bits and key size up to 256 bits and was one of the finalists in the Advanced Encryption Standard contest.
Once the user selects the file he wishes to upload, they are sent to hosts via a smart contract. These contracts define the parameters of the agreement between the renter and the host, like pricing, uptime commitments and other. These contracts are autonomous by nature, which means no third parties need to escrow the process. The contracts are renewed over time and typically last for 90 days. Should the contracts not be renewed, Sia automatically returns any unused coins to the renter when the contract expires.
Hosts, on the other hand, have to submit storage proofs at the end of a contract, which as the name suggests, proves that the host is storing or has stored the renter’s data.
The Siacoin utilizes its own blockchain protocol. The coin is used by both renters and hosts. The renters use it to buy storage capacity while the hosts must always hold siacoin into each contract as collateral. The micropayments utilize an infrastructure called payment channels, which works similarly to Bitcoin’s Lightning Network.
As most cryptocurrencies, Sia has had its own share of controversy surrounding it. Sia announced working on its own ASIC miner called the Obelisk, a project funded by some community members designed to mine SIA, which divided the community in two, with some parts of the community absolutely hating the idea. Bitmain learned of those plans and created a Sia-specific ASIC miner of their own, even before Obelisk came out. Obelisk turned out to be very lackluster compared to Bitmain’s product. This ended up with Bitmain miners overwhelming the network and making it hardly possible for Obelisk miners to get any profitability, which caused a huge uproar in the community.
Overall, Sia is a decent project. It’s been around for quite a while and has withstood many FUD attempts and fierce market cycles, despite this, the Obelisk issue still remains. The company definitely needs to be more careful when announcing plans about the future as there are many competitors standing on the sidelines in such an unregulated market, where few people are scared to use all they got in order to profit.
- Tried and tested
- Lots of exchanges
- No direct backing (asset, profits, commodity)
- Mining controversy