In these years we will see one of the most striking trends in the market, the fusion of collaborative economies with the birth of new cryptocurrencies such as Siacoin. This is because both concepts turn out to be more than promising in making the economy more accessible and also more efficient.
One of the cryptocurrencies that you are betting on for collaboration is Siacoin, the currency of which we will talk to you here. We will tell you what the technology is behind, what advantages they offer versus other currencies, among other points to take into account. So you can make the most of this virtual currency.
➡What is Siacoin? ✨
We could define Siacoin as a platform that mixes both Blockchain and databases, this through a Peer to Peer and open source system. Together with this platform, we also find a Token or virtual currency developed with its own blockchain or Blockchain.
Another way of looking at Siacoin is as a large decentralized storage platform which allows users to lend storage space to the system in exchange for payment or retribution. The goal is for users to take advantage of unused or underused space on your hard drive.
Compared to other storage systems such as Dropbox or Drive, which work through the cloud, Siacoin works through Blockchain. This guarantees the security of the data, since they will be protected under the same network environment. In addition, the host is protected in the same way, preventing information leaks.
In short, the system is made up of the user, who is in charge of storing the information, the platform that allows keeping the information secure, and also the Host, who is in charge of renting its storage. All regulated and protected by the Siacoin environment.
➡Differences between Siacoin and other cryptocurrencies✨
- Function: Bitcoin is limited to operating as one more form of payment while Siacoin has a goal that goes further. And is that Siacoin works as a storage platform which uses a cryptocurrency to manage the Hosts of the collaborative system.
- Use of the currency: Another of the most striking differences is that Siacoin works as an exchange or payment currency for the SIA platform. This is because users receive their payment for hosting the files in this cryptocurrency, so it is used more as bill payment.
- Validation time: One of the clear differences is found in the validation time since Siacoin keeps the same time as Bitcoin, which is much slower than other cryptocurrencies. It takes approximately 10 minutes to validate each block.
- Inflationary currency: You should also take into account that Siacoin does not have a ceiling, that is, this altcoin does not have a cap. This is reflected in the fact that this token is a virtual currency with inflationary tendencies. For some, this is a disadvantage because of volatility and low control over the currency.
- Commission for creators: Most cryptocurrencies do not give a commission from the creators of it. According to the developers, receiving a small commission from each transaction is one way in which the platform generates income to develop future updates.
- Platform: Finally, we can see that Siacoin operates in a different way in terms of data storage, since here each node participates by offering Hosting or hosting information. In this way, Sia takes advantage of wasted space on users' computers by offering a reward for it.
SIA, to function, unites different types of technologies. On the one hand, we have the Blockchain which works through a Peer to Peer structure and open source. Along with it we have the use of cloud storage which is linked to the blockchain.
Using blockchain-linked cloud storage technology allows users to rent their space and computer power to other users. In this way, a much more accessible accommodation or storage is offered than the large servers on the market.
Similarly, SIA developed its own Blockchain in order to ensure better control over the blockchain. Thus, it is guaranteed to be able to execute its own smart contracts in order to be able to link users in search of information Hosting as well as users who want to be a Host.
Among the algorithms used by SIA we have the Blake mining algorithm with the high Hash function. These were used for the development of the Siacoin Token which is used as a form of payment. Additionally we find the Twofish algorithm which is responsible for encrypting user data.
Siacoin mining is done differently than other cryptocurrencies due to the nature of the currency and the use of the Blake mining algorithm. Although the process is the same, taking care of validating blocks and verifying transactions, the process is much simpler and lighter.
To mine your own Siacoin you do not need very powerful hardware, it will be enough to use your own computer and a software focused on mining cryptocurrencies from SIA. In this way, more users can take charge of validating blocks and thus earn a commission in exchange for their services.
➡Where can I get them? ✨
A great advantage of Siacoin is that it is easy to access. You can have your own Sia cryptocurrencies by mining the blocks which is simple, as we already told you above. If you know about cryptocurrencies, then without a doubt this is your best option.
On the other hand, if you don't want to mine you can buy Siacoin in Exchange or exchange houses. Take into account that the use of this virtual currency is not so widespread, so it is not available in all exchange houses, although it is in some of the most popular ones. Also, consider that they can only be exchanged for other cryptocurrencies.
Financial analyst and economist with a master's degree in finance.