Siacoin (SC) – Is It Worth? An In-Depth Guide

Written by Adolph Obasogie

2019-01-18T04:35:55+00:00

What is Siacoin?

Siacoin is a decentralized file storage platform that operates on top of a blockchain. The primary purpose is the liberation of unused storage space.

It enables users to make their personal storage space (hard disk, SSD) available for other users to store files on it and get rewarded in Siacoins.

This is achieved through special smart contracts, called “file contracts” that make sure that hosts (users who provide storage space) get paid by users who need that storage capacity to store files. The currency of this ecosystem is Siacoin (SC) and is used to pay for storage space and as a reward for hosts who provide storage space.

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Each file that is uploaded and stored within the Sia network is split into multiple pieces and then encrypted. The pieces are then stored on various hosts to provide privacy and security.

A second cryptocurrency, called Siafunds, exists in the Sia platform. The maximum supply is restricted to 10,000. The majority is held by Nebulous Inc, which is the parent company. Several units of Siafunds have been sold to fund development via a tokenized securities offering to accredited investors. 3.9% of all payouts from storage contracts go to the holders of Siafunds in the form of Siacoin.

History

David Vorick and Luke Champine had the idea for Siacoin in 2013. Siacoins were not distributed through an ICO; every existing SC was mined.

Siafunds were offered to investors twice, in 2015 and 2018.

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Can Siacoin be mined?

Yes, it is based on Proof-of-Work so that it can be mined. Siacoin uses BLAKE2b as hash function and the block time is 10 minutes.

What differs Siacoin from other Cryptocurrencies?

It offers a solution to reduce the wasting of unused storage space. It was one of the first projects in this space.

How much is it worth today?

Where can you buy SC?

You can buy SC on several cryptocurrency exchanges, most notably Bittrex and Upbit.

Can SC be sold for cash?

You can sell SC for cash on several cryptocurrency exchanges that have fiat-pairings, most notably Upbit.

Future Development

Siacoins long-term goal is to become the storage layer of the Internet. They strive to develop mobile wallets, reduce the minimum file size, provide the ability to recover your files using only your wallet seed, improve scalability and expand their API. Development is very active.

Verdict and Rating

3/10
Good team and development is going forward at a good pace. But I think Siacoin will have a hard time to establish himself against the strong competition, for example, Storj and Filecoin.

Let alone the centralized competition in the form of Amazon web services and Google drive, that don’t require buying a token before storing files, although they don’t offer the opportunity to rent out your unused hard drive space. Also, their token supply is inflationary.

From an investors point-of-view, I would instead look at Siafunds than at SC. And in order to profit from Siafunds, it is required that the Siacoin ecosystem is widely adopted and used.

I would not take the risk.

3 / 10.0

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Disclaimer

The writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

Contributor : Adolph Obasogie (View all posts)

Gb Adolph Obasogie is a Chartered Accountant, and he worked for several years as an Independent Consultant for World Bank projects in emerging markets. As an Emerging Markets Analyst, he has analyzed several portfolios for clients in the Middle East, North America, Europe, and Africa. He has a deep understanding and insight on the workings of Cryptocurrencies and their real-world applications. You can connect with him on Linkedin.