April 20 2022
How Siacoin Work and Short-term Price Prediction
What Is Siacoin?
Siacoin (SC) is a decentralized cryptocurrency platform that intends to provide modern solutions to the world’s digital storage problems. As such, the platform provides efficient cloud storage which is an important need of many firms and institutions.
In the contemporary era of ‘fake news’, important concerns over the security and veracity of information in digital media have emerged. It is fair to say that the power to control data is perhaps more potent than having a bunch of bombs. Accordingly, this is where the room for transparent cloud storage comes in. Enter Siacoin.
Centralized cloud storage services like Dropbox offer excellent storage but have a critical shortcoming. The centralized bureaucracy means that your data is not entirely in your control and can be altered by the centralized entity at will. Siacoin utilizes blockchain technology to create immutability.
A user, instead of renting storage from centralized provider, uses peer to peer storage within the Sia network. The network relies on a blockchain similar to the Bitcoin blockchain and storage contracts between participants in the network facilitate the process.
In simple terms, Sia leverages the combined storage capacities of the Sia community’s hard drives to achieve low cost but transparent storage services. The blockchain serves as an intermediary, and since now one controls the blockchain, it is effectively decentralized.
How Does Siacoin Hosting Work?
The platform utilizes what is known as storage contracts to effect the hosting of user data. As such, a storage provider, who is the host, agrees to store a client’s data. They have to then periodically submit proof of continued storage until their contract expires. The host earns Sia for every proof of storage and this proof is available and verifiable on the blockchain. You can store the earnings in the online Siacoin wallet or whatever other compatible wallet.
Siacoin mining, therefore, entails verification of these proofs. Network consensus ensures that the proof is legitimate and this keeps the entire system going. The client needs not to be involved in Siacoin mining as they can leave verification to the system upon uploading their file.
- Costs less – Siacoin storage dramatically lowers the cost of cloud storage. For instance, it will cost you $2 per month to store a one terabyte file, compared with $23 on Amazon S3.
- Private storage – Even though data is distributed to a host in the network, the network actually encrypts the data. You alone have the private encryption keys and own the data. This means that no one, including the host, can access and tamper with your data which is not possible with centralized storage.
- Highly redundant – Redundant here means that there are multiple nodes across the globe to store your files. There is no possibility of single point failure as would be the case for traditional storage systems. The system multiplies bits to cover for instances where one of the nodes might be offline. This ensures that data is available full-time.
Siacoin Price Prediction
The Siacoin price at the time of writing was $0.002 USD. It goes without saying that Siacoin prices fell marginally from the highs of early 2018 when prices hovered close to $ 0.01. Understandably, the bear market through most of the remainder of 2018 had a rough toll of Siacoin prices.
Predicting coin prices is a task that eludes even persons with the most advanced analytics. This is because the coin market has shown a volatile streak that is simply unparalleled in contrast to other commodities.
Siacoin has some structural changes lined up which can improve fortunes. They include reaching out to projects like Blockstack and RNDR to solve scalability issues and even possible collaboration with streaming giant Netflix.
This means that a Siacoin price prediction of $0.01 at the end of the year is reasonable. This price could very well be higher or lower based on general market conditions and regulatory responses. As a result, it is still incumbent that you conduct your own research before making investments in this project.
In summary, Siacoin is an innovative platform that has a distinct possibility to disrupt a billion dollar industry. Blockchain technology is synonymous with efficiency and Siacoin is no different. As such, you have a safe, private and less costly to your data storage needs. This project definitely has tremendous upsides for investors and users alike. It is fair to conclude that it is one great project in the blockchain revolution and the future is likely to be bright.