Sia bases its operation on blockchain technology and smart contracts, the latter being stored in the chain of blocks of the storage platform. Likewise, this service allows any user to rent the free space of their hard drive to create a worldwide network of distributed storage. In other words, Sia is a P2P storage network that stores small encrypted fragments of information stored between the storage ‘hosts’ around the world, thus removing the figure of a centralized server, reducing the possible storage costs and guaranteeing the protection and privacy of information.
The encrypted data can only be opened by the owner of the data through the use of ‘keys’. Users who rent their HDD (hard disk) receive payment through the Siacoins (SC), cryptocurrency of the platform. For this year, Sia has more than 1000 storage hosts around the world.
The cost of storage rental service varies depending on the capacity needed: the more space you need, the more expensive it will be; however, especially towards the corporate, it is still much cheaper than the services provided by centralized storage platforms.
The basic function is to provide decentralized cloud storage on the computers of hosts around the world. Rental of storage space will cost the user of Siacoins (SC). On the other hand, the reward system of the hosts is a little different. The user must provide a warranty in SC to the company for hosting.
When a file is uploaded to Sia, a storage contract is created: containing the root “Merkle” file, a reward and a penalty for the host (both in Siacoins). After an agreed duration, the host is required to prove that the file is still available by providing a random Merkle-proof.
Random numbers are deterministically generated using the most recent block as a seed. If the proof is valid, the host is rewarded; and if not, the host will be penalized. Therefore, in order to earn rewards, the host must commit to the agreed length of his accommodation.
These are based on multiple factors; such as uptime, contract price, and host-defined warranty, including other factors specified in the “Host Manual”. The team believes that this is an appropriate deterrent to violating accommodation agreements.
How to get Siacoins (SC)
The Siacoins are Sia’s cryptocurrency, they are used to pay for storage rental services within the platform, and can be obtained in four ways: by being part of the hosting program (hosting information from other users), receiving SC from other users, helping Sia to improve its work network by mining the cryptocurrencies of the platform, or buying them in the Bittrex, Shapeshift, and Yunbi exchange houses; in addition they can also be acquired in Poloniex, but can only be negotiated with BTC.
To be a host or to be a guest of information, you must download Sia’s portfolio. Subsequently, the price of the rental of storage is chosen, and then, when another user needs your service, they must pay the rental fee with SC. To learn more about how to be a host you can read the explanatory guide available in their site.
To mine Siacoins: you simply have to download the Sia Miner, an application that is used for the mining of the cryptocurrency, or use the Claymore Dual miner, either individually or dual next to ETH or ETC.
Currently, the SC have a market capitalization that almost reaches $ 272,882,610, and its price is $ 0.007250 per unit of SC.
Overall, from a business perspective, Sia has everything it takes to make any project a success: a strong team, an innovative idea and an active community. Although still ongoing, Sia has a functional product and a solid promotional roadmap for 2018.