Guide: Cryptocurrency Siacoin


Guide: Cryptocurrency Siacoin

Siacoin (or Sia) is a decentralized platform that provides cloud storage and competing with the centralized cloud-DropBox, Amazon, Apple and Microsoft.

With the help of Sia anyone can provide a free place to others or, conversely, to place your files in an encrypted vault, and all contracts, evidence of preservation of content and transactions are validated using the public blockchain.

We can say that the Sia takes the monopoly on cloud storage from centralized providers and gives the opportunity for individual users is peer-to-peer system, in which anyone can rent free space on their devices.

All services in the network are paid in bitcoin Siacoin, and durability of transactions are ensured of smart contracts and evidence storage.

Ecosystem storage

The platform consists of Sia service providers (hosts) and clients (users) hosts offer users free storage space on their devices and get a fee for this Siacoin.

The ecosystem plan is flexible, and its work will largely be determined by the free market. Hosts can set prices, advertise the reliability of their equipment and offer compensation on a case if storage problems occur and files are lost. In addition, they may refuse to provide the client with a place if they are not satisfied with something in the nature of its data — for example, if they are ethically dubious, affects someone’s interests, or if the proposed store illegal content.

Also taken a number of measures to protect the clients ‘ interests — they can split up your data between multiple providers to ensure the security of files and the possibility of their recovery in the event of a failure; if the host lost client file or simply refuses to give it, he may simply request a copy from the repository to another host. In addition, in the event of such a situation, the parties can negotiate the fines, which are obliged to pay the host.

In addition, the customer may pay the service provider for the storage reliability that should encourage hosts to listen to the needs of users to ensure fast communication and so on.

Smart contracts for storage of files

If the client and the host you want to establish a relationship, they enter into a contract for storage of files (as we have said, the host data is stored on the hard disk, but the contract is recorded in the blockchain Sia).

This contract defines the conditions of storage and guarantee the performance by the parties of their obligations, it is stored in the public blockchain and at the same time open to view and is protected from changes.

When we mentioned, the terms of the agreement can be quite flexible. So, if the customer wants to buy the service cheaper and willing to sacrifice reliability, that is his right, and the host can, for example, to charge for storage of large amounts of data. Platform users choose service providers based on their reputation and match technical requirements, and the host, in turn, can decide whether or not a customer with such requests.

The use of smart contracts provides on the market the required level of security: they determine the duration of the agreement, the frequency with which the provider must provide the network proof of work storage and also the cost of the service.

The client, creating a contract, gives it funds to ensure future payments, and every time another document is sent to the storage part of the funds from this account is sent to the host, and when the contract ends, the unused coins if they are returned to the wallet of the client.

Proof storage

Sia implemented proof (Proof of Storage) — this mechanism protects clients from unscrupulous behavior of the host. To obtain payment, the supplier shall provide the system a certain amount of evidence within the time specified in the contract.

If the supplier is unable to provide proof of storage in a timely manner, the next payment goes to the missing address proof, and later a provider can be fined for breach of obligations. In addition, if the provider is too often allows such a situation, the contract can be terminated early.

When the host is successfully providing the evidence storage, the contract shall calculate the payment to a valid address proof, and after fulfillment of certain conditions, the host gets access to these coins.

Sia better than the competition?

Sia offers a number of advantages compared to traditional cloud storage services:

Privacy. All data on the network of Sia are stored in encrypted form, and if no host private key, he cannot access them, that is, the client is always fully in control of any of your materials. In the traditional model, the company that manages cloud storage, your data has full access.
Accessibility. Sia implemented a flexible model cenoobrazovanija — a single price tag no, and the customer can choose a suitable option. So, for example, storing 1 TB of data using Sia can cost as little as $2 a month, and on Amazon it costs $23.
Security. Again: all data pass through a decentralized network of Sia in encrypted form, that is, users of this network are not afraid of threats, typical for centralized systems. In addition, Sia has the ability of redundant storage of client files are distributed between different hosts, and the failure of any of them does not affect data availability.
Where to buy and store Siacoin

Siacoin can buy bitcoin or ether on exchanges Bittrex, Poloniex or Upbit. A large part of the Sia is sold for BTC and ETH for the first two exchanges and Poloniex supported only trade for BTC.

Currently the only storage option Sia is the official wallet of the project, which can be downloaded on the project website. Supported 64-bit Linux, Windows and MacOS.

On the background of the promises and unfinished products, which are distributed around Siacoin — a rare and promising project. Unlike many others, the team is Sia and up to date development plan, and most importantly, running a service that you can “feel”.

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