What is Siacoin (SC)?
Sia is a decentralized cloud storage platform powered by blockchain technology. By harnessing unused global hard drive capacity, it creates a cost-efficient, censorship-resistant alternative to traditional cloud storage providers like Amazon Web Services or Google Cloud.
Key advantages of Sia:
- End-to-end encryption for data privacy
- Redundant storage across 30 global hosts per file
- Lower costs (up to 90% savings vs centralized providers)
- No single point of failure
Siacoin Launch Timeline
| Year | Milestone |
|---|---|
| 2013 | Conceptualized as "Nimbus network" at HackMIT |
| 2014 | Renamed to Sia; crowdfunding via Bitcoin/NXT |
| 2015 | Genesis block mined (June 6) |
| 2016 | v1.0 released; listed on Shapeshift |
| 2020 | Block rewards stabilized at 30,000 SC |
| 2022 | Skynet Labs closure (network remains operational) |
👉 Discover how decentralized storage compares to traditional cloud solutions
How Sia's Technology Works
Core Components
- Skynet Protocol: Enables decentralized app hosting
- Storage Contracts: Blockchain-enforced agreements between renters/hosts
- Proof-of-Work: Secures the network (ASIC-resistant algorithm)
- Siafunds: Revenue-sharing tokens (3.9% fee on contracts)
Data Storage Process
- Files are encrypted and split into 30 segments
- Each segment gets distributed to unique hosts worldwide
- Hosts provide cryptographic proofs of continued storage
- Renters pay in SC; hosts stake SC as collateral
SC Tokenomics Explained
Key Metrics
- Circulating Supply: 52+ billion SC
- Inflation Rate: Fixed block reward (30,000 SC/block)
- Smallest Unit: 1 Hasting = 10⁻²⁴ SC
Use Cases:
- Paying for storage contracts
- Host collateral requirements
- Network transaction fees
Supply Schedule
- No maximum supply (infinite inflation)
- Block rewards decrease by 1 SC/block until stabilizing
- First "TeraSia" (1 trillion SC) projected by 2626
Buying & Storing Siacoin
Where to Buy SC
SC is available on major exchanges including:
- Binance
- Kraken
- KuCoin
- OKX
👉 Compare exchange rates for Siacoin purchases
Storage Options
| Type | Recommended For |
|---|---|
| Sia-UI (Desktop) | Beginners/hosts |
| Sia Central (Web) | Casual users |
| Ledger (Hardware) | Large holdings |
| Command Line (siac) | Advanced users |
Important: Avoid long-term exchange storage due to counterparty risks.
Sia Network Security
Proof-of-Work Advantages
- Attack resistance: 51% attacks become prohibitively expensive
- History preservation: Alternate chains require massive energy expenditure
- ASIC-resistant: Promotes decentralized mining
Energy Consumption
While less intensive than Bitcoin, Sia's PoW:
- Uses ~15-20 GWh annually (est.)
- Justifies energy costs through storage utility
- May explore hybrid consensus models long-term
Investment Potential of SC
Bull Case
- Growing demand for decentralized storage
- Competitive pricing vs centralized providers
- Active development (Sia Foundation)
Bear Case
- Inflationary tokenomics
- Enterprise adoption challenges
- Competing projects (Filecoin, Arweave)
Key Question: Can Sia capture meaningful market share from AWS/Google Cloud?
FAQ: Siacoin Essentials
Q: Is Siacoin mined like Bitcoin?
A: Yes, but with ASIC-resistant algorithms and fixed block rewards.
Q: What happens if a host loses my data?
A: They forfeit staked collateral, and your files are rebuilt from other segments.
Q: How is Sia different from Dropbox?
A: Sia has no central servers, can't deplatform users, and offers end-to-end encryption.
Q: Can I earn SC by hosting files?
A: Yes - you'll need spare storage space and technical knowledge to become a host.
Q: What's the smallest amount of SC I can buy?
A: Most exchanges allow purchases of $1+ worth (≈100-1,000 SC depending on price).
Q: Are there mobile wallets for SC?
A: Currently no official mobile options; third-party solutions exist but lack full functionality.