Siacoin Cryptocurrency: the Complete Guide for Novice Investors

19.06.18 10:40
Cryptocurrency

Siacoin: a new cryptocurrency

Siacoin is a rather new cryptocurrency that has been around since June 2015. This is one of the most promising crypto projects of recent years. Siacoin is not just another cryptocurrency, but also a platform for decentralized file storage. If you are looking for a decent coin for long-term investment, this one may be exactly what you need. In this Siacoin review, we covered the most important details about this currency for those who have never heard about it.

What is Siacoin: A Short History of the Platform

The development team of Siacoin: David Vorick (co-founder), Luke Champine (co-founder), Johnathan Howell (developer)

 

Before we go into details, let us say a few words about the platform called Sia. This is a decentralized cloud storage available from all over the world. At this moment, Sia is still in its development stage.

The platform was created by David Vorick and Luke Champine. They started working on it in September 2013. At that time, they were students of Rensselaer Polytechnic Institute in New York. The two friends wanted to build a system that would create intrinsic value for users by using tokens as a payment for data storage, unlike other crypto projects that offer digital assets only as a medium for exchange. Users of this platform provide storage space from the hard disks of their personal computers, thus receiving Siacoins and building a network.

Every Siacoin holder may become a renter and use a cloud storage space. On the other hand, you can rent out unused hard drive storage to earn Siacoins. All the operations proceed via smart contracts that are saved in the Sia blockchain. These contracts ensure that the host has paid for storage services: Siacoins will be transferred to the host at the end of the designated period of time. If host deletes the file by that moment, he will not get any Siacoins.

Thanks to the decentralization, transactions are very fast, and the system itself is safe and reliable. Just like Bitcoin, Siacoin is completely independent. It is free from any leverage: not a single government, company, or person (including both Vorick and Champine) can regulate it.

The very first working beta of this platform was released in March 2015. At the moment we are writing this article, the latest version of Siacoin is 1.3.1, which was released at the end of 2017.

The Main Work Principles of Siacoin Cryptocurrency

The Sia platform allows its members to store or rent cloud storage space in exchange for Siacoins. It uses smart contracts, which include information about the reward for successful storage and the penalty for breach of contract (if you delete a Siacoin file from your hard drive, you will have to pay a fine). All the data uploaded to Sia is encrypted before it is sent, so other users of the platform cannot get access to it. At the end of the required period, the host must prove the existence of the file on his hard drive. In the positive case, he will receive a reward.

The system supports payment channels and bilateral contracts. All transactions in Sia blockchain are instant and are not refundable, which reduces the risk of scam for both hosts and those who rent space on hard drives of other users.

This is how Siacoin works

 

Additionally, data storage reliability is achieved by splitting the file into a large number of fragments. Some of them are not even required to recreate the original file, which excludes the possibility of third parties accessing it. Moreover, fragments themselves are also encrypted for even more protection. As a result, a file requires three times more space storage than needed. However, the main priority of Sia is safety and confidentiality, so increased resource requirements are completely justified.

Decentralization has a positive effect on the speed of transactions, which attracts many investors. They, in turn, increase the capitalization of Siacoin. The bigger the Sia platform — the more effective it is.

The Sia platform is very appealing to regular users since its entry threshold is very low. Everyone who has unused disk space on their computer can join it and receive Siacoins. This fact significantly reduces the cost of cloud storage.

Differences between Siacoin and Bitcoin

Siacoin is very different from Bitcoin. In the first place, it is explained by the nuances of the Sia platform. You can mine it (we will talk about it later in this article), but rewards for each mined block are constantly reducing. The reward for the very first block was 30 thousand of Sia coins, but each next block will give one coin less up to the block number 30000. All subsequent blocks, starting from block number 30001, will only cost one Siacoin.

It is important to note that Siacoin cryptocurrency is only an addition to the main platform. Its primary function is to pay for the storage space at Sia cloud by making contracts. Therefore, the Siacoin course directly depends on the number of files stored in the system.

The Sia blockchain algorithm is also different. It stores smart cryptographic contracts, which is written between a client and provider. As we have already said, smart contracts provide reliability and ensure that both the hosts and the users are satisfied.

All fraudulent acts are prevented in the Sia platform since the host has to provide a mandatory proof of storage in order to receive Siacoins. The host has to do in order to receive its payment. If the client will not get a storage proof over a period, the contract will be terminated and the host will not get any Sia coins.

Siacoin Roadmap

Siacoin price chart from April 2017 to April 2018

 

Siacoin seems very promising because the Sia platform keeps growing. With its growth, the Sia coin price also increases. In the case of a long-term investment, it can fully pay off many times over a certain time, if you give it a chance.

Creators of Siacoin hope that their platform will join the ranks of the best cloud storage services with decentralization. It will be pretty hard to achieve this goal, since the main competitors of Sia are corporate giants such as DropBox, Amazon, and One Drive.

However, Siacoin has a huge advantage over them: different developers are allowed to create applications on the base of this platform. As we are writing this, the development team of Sia is working on the application programming interface.

Considering all the above, it seems that Siacoin blockchain will continue to grow, as well as Sia coin price. Many cryptocurrency enthusiasts are investing in it right now because it has a potential to become a leader on the market of cloud storage and bring lots of profit.

How to Open a Siacoin Wallet

If you want to start using this platform, you should visit the official website of Sia. It offers all the needed information. Open it and click the green “Get Started” button.

You can download Siacoin wallet called Sia-UI for Windows, Linux, or macOS. Choose the needed version and click the button. After the download is finished, unpack the archive to any directory and open the Sia-UI file.

Sia-UI folder

 

After the launch of Sia-UI, click the “Wallet” button and choose “Create a new wallet” option. You will see the seed of your wallet — save it. The default password for your Siacoin wallet will be the same as the seed, but you can change it.

Keep in mind that you will need to enter the password every time you launch Sia-UI. If you lose it, you will not be able to restore access to your funds.

The seed of a Siacoin wallet

 

After you set the password and saved the seed file, click the “Next” button and confirm your password.

Wait until the program downloads the Siacoin blockchain (the progress is displayed in the top right corner of the app). This process may take hours (the speed depends on the quality of your internet connection). You will not be able to use your Siacoin wallet until the synchronization is finished.

After it is done, click the “Receive Siacoin” button.

Click the “Receive Siacoin” button after the synchronization

You will see a long set of numbers and symbols. This is the address of your Siacoin wallet.

The address of a Siacoin wallet

 

Do note, that every time you click this button you will see a new address. Do not be afraid: you will still receive payments sent to previous addresses. To see the full list of your Siacoin wallet addresses, click the “Terminal” button and enter “wallet addresses” command.

How to Mine Siacoin

You can start mining Siacoin coins as soon as you open a personal wallet. You can choose the Marlin miner or any option from this siawiki.tech list.

To install the Marlin app, follow these instructions:

  1. Download the app from this website: github.com
  2. Unpack the archive into the “c:\marlin” folder
  3. Press the Win + R combination and enter the “cmd” command into the Run menu
  4. You will see the command line. Enter the following line: “C:\marlin\marlin.exe — — selftest”. If you did everything right, you will see the list of lines. Each of them has to end with the “PASS” word. It means that the GPU-library for mining was successfully installed and the Marlin miner has access to it. Now you can start mining Siacoins.

Here is a short guide to Sia coin mining at Windows for the Marlin miner:

  1. Open the standard Notepad application
  2. Choose the “File” menu, click the “Open” button and enter “C:\marlin\marlin.bat” to open the settings of the miner
  3. Find the “SET address” line and type your address instead of the default one
  4. Change the default address to your own address
  5. Save the file and close the Notepad application
  6. Go to the “C:\marlin” folder and open the “marlin.bat” file.

Congratulations! You have launched the mining process.

Conclusion on Siacoin Cryptocurrency

Siacoin statistics

 

Siacoin is a stable cryptocurrency with huge potential. This is an interesting project for long-term investment and its creators are definitely not frauds. There is a high chance that someday the Sia platform will find its niche and grow into a giant of cloud storage. Buying Siacoin coins at this moment seems like a good idea.

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