Coin of the Week: Siacoin

This originally appeared in Coinme’s weekly newsletter: The Coinster.

What is Siacoin?

Sia is a leading decentralized cloud storage platform. It leverages blockchain technology to create a data storage marketplace that is more robust and affordable than traditional providers.

The common issue with current storage providers, like Apple and Google, is one of centralization. Those companies, whether it is Google, Amazon, or Apple have large facilities that provide cloud storage for much of the data of the world which means these singular companies have access to all your information while being susceptible to third-party hacking. Look no further than any of the recent data breaches to see why a single point of failure with data is a dangerous idea.

Sia, by contrast, allows for private, decentralized, distributed cloud storage at a far lower price. Sia’s platform costs on average 90% less than its competitors and your information is always guaranteed to be anonymous from everyone.

“Sia is reinventing cloud storage. Our technology connects users who need file storage with hosts worldwide offering underutilized hard drive capacity. Blockchain technology secures their data and enables improved economics for users and hosts.” — Via Sia.Tech

How does Sia Work?

Sia’s platform consists of both providers (hosts) and clients (users). Through the platform, users commission storage space from hosts, and the hosts are compensated for their services in Siacoin.

One of the great opportunities that Sia provides is that anyone in the world with additional storage can become a host and get compensated for hosting clients files. When a client wants to use Sia’s cloud storage, a smart contract is executed with the host determining the length of time and price (in Siacoin) at which the client will use their storage.

Every file that is stored is encrypted and broken into multiple pieces then stored in multiple worldwide locations. Sia provides for a completely secure and anonymous way for every file to be stored. When a client wants to retrieve the file Sia’s platform retrieves the bits of that file from all over the world, reorganizes it, and decrypts it to its original state.

Final Thoughts

Recently we have seen numerous centralized authorities abusing their client’s personal information. Because of blockchain companies like Sia, we can now take comfort knowing that our information is safe without any opportunity for any one company to take advantage of it.

Find more about Siacoin here.

Each week, Brian Belden highlights a new digital currency you want to pay attention to.

You can find him on LinkedIn here.