Siacoin (SC) is the utility token of the Sia network, a blockchain-based distributed and decentralized cloud storage platform that works by using unused storage capacity to create a data storage market.
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Siacoin’s goal is to protect the privacy of user data. The Sia ecosystem consists of renters, hosts, miners and a team of developers who are responsible for building on the Sia and Skynet network. The Sia network is fully automated, operating with minimal human intervention.
Designed as a decentralized file sharing and content delivery platform, Skynet is built on Top of Sia. It is able to store and serve content in a decentralized way.
Skynet is an open source protocol that stores any type of data and files. Data can be uploaded to the platform through the user’s Sia node or from a third-party Skynet web portal. The files generate a 46-byte link after their successful loading, known as Skylink. That link acts as the address of the file and can be shared with anyone so they can retrieve data from Skynet.
Once a user successfully uploads a file to Skynet, they don’t need to stay online for the file to be available to others. Instead, the Sia network takes all responsibility for the file from that point, including its pinning and providing fast recovery speeds: this means that DApps using this service have access to a decentralized storage layer.
Centralized applications can also use Skynet, as the protocol can allow any user base to store and distribute data without restrictions.
How does Siacoin work?
The Sia ecosystem consists of some critical elements that are explained below:
- Node: Instance or installation of Sia;
- Tenant: Uploader of files or data on the network;
- Guest: Person who lends their personal storage space to others to use so that they can upload files to the network;
- Contracts: As the name suggests, contracts are a legal set of terms between a renter and a host that both parties agree on. Contracts have the fundamental purpose of specifying the amount of data stored, along with its period of time and cost. All contractual data is tracked and completed by the software and the blockchain;
- Siacoins: Siacoin is the main token that powers the Sia platform;
- Siafunds: Siacoin also has a secondary token that is used for sharing revenue on the network. Siafunds holders are also granted Siacoins as a reward upon completion of each individual contract completed.
After successfully uploading a file to the Sia platform, the file is split into several parts and encrypted. This file is then sent around the world through different paths, as renters upload the files and hosts store them.
So, Sia’s automation comes into play to manage everything. The network ensures the availability of files forever after they are uploaded by the user, since each file is copied several times. Hosts are unable to access those entire files, since what they receive are only parts of a file with encryption levels.
Siacoin is the utility token of the Sia network, powering its ecosystem: almost all the services and features available on the network are accessible using Siacoins.
When a user uploads their data to the Sia network, the storage space required for that data is purchased with Siacoins. Hosts get paid in Siacoin for storing other people’s data.
Siacoin (SC) Tokenomics
The total token supply of the SC token is 51,548,842,992 and the current circulating supply is 51.55B SC.
Siacoin (SC) Price
Siacoin (SC) is trading at around $0.004775 as of August 1, 2022. Its 24-hour trading volume on the stock exchange is over $37 million.