Bitcoin had a great start in 2024, and you might be looking to offload this asset before it loses some of its current value. If Siacoin is an option to acquire, use a BTC to SC calculator first to understand the trade value better.
Before you go ahead with the swap, it’s critical to learn more about Siacoin. It introduces the concept of a decentralized cloud storage service. Here’s more information about how it works and what the coin’s benefits are!
Understanding Siacoin
Siacoin is a cloud storage service that uses the perks of blockchain technology and guarantees decentralization. The storage platform works like this – anyone with a spare storage room can offer to keep data for others. Smart contracts regulate how everything works, so there’s no need for a centralized party.
The project’s history goes back to 2013 when Luke Champine and David Vorick presented their idea at a hackathon. It took a few years, but the project attracted interest. Siacoin reached its all-time high in 2018, when it peaked at $0.1117.
One SC coin now has a value of around $0.01. You can find around 56 billion in circulation, with the supply being endless to accommodate the “infinite” requirement for storing files. Siacoin has a market cap of around $583 million, placing it around the 149th spot in the digital coin ranking.
The crypto market offers a generous range of potentially profitable swaps. You can check HBAR vs VET as an alternative exchange pair if you decide that it’s not a good time to invest in Siacoin after reading this post.
Features and Benefits of Siacoin
If you need to store sensitive files, Siacoin might be the best bet. Thanks to the P2P concept, you pick files to keep on the network. After you upload them, the system divides them into dozens of fragments. The data is then split across the storage nodes. It’s impossible to access it with a single node since it’s necessary to have a private key to confirm file ownership. That’s how Siacoin maintains security without a centralized authority.
The major benefits of Siacoin include:
- A cheaper option than centralized cloud services. Storing your files can cost less with Siacoin compared to Google or Apple services.
- The decentralized concept maximizes security and prevents unauthorized access. Dividing files into fragments and protecting them with private keys is how Siacoin keeps data safe. Even if someone finds a way to access one fragment, there’s no chance they can get all your files.
- An opportunity to earn. Anyone can offer their storage space for this platform and get some SCs in the process.
How Siacoin Works
The platform presents a P2P concept, and this peer-to-peer mechanism has two sides. The first one contains hosts, and the others are renters. A host agrees to store data for renters and receive a financial incentive for that service. The payment is in Siacoins (SC), indicating that it’s necessary to sell the tokens to earn a profit. Hosts can choose how much they will charge for cloud storage and what capacity they will offer. It’s even possible to refuse to store files for a particular party.
Renters also pick how much they want to pay for the services based on the available offers. Once they agree to store files, predefined smart contracts regulate the communication between the parties.
Siacoin uses the proof-of-work mechanism, indicating the network relies on miners. These lend their computational power to approve transactions and contribute to network security. Miners generate new SC blocks and earn rewards accordingly.
Conclusion
The statistics indicate that hosts currently offer 6.36PB (petabytes) of space for renting. That storage is in multiple countries across the world and a significant portion isn’t even in use on the network. That means Siacoin has enough resources to handle an expansion, which could follow in the coming years.
If that expansion happens and decentralized cloud storage becomes popular, SC could become a huge hit in the crypto market. Acting in time to acquire it now might be a smart move, as long as you are ready to show some patience. But ultimately, remember to only go ahead with the trades that you personally think best fit your portfolio.