With new ICO start-ups being tokenized every day, the volume of the cryptocurrency market is constantly increasing. The digital currency market that started with only one currency, namely Bitcoin in 2009, now consists of more than eighteen hundred currencies. With the introduction of every new coin offering some unique and ingenious features, the competition for a decent market capitalization and price is getting even fiercer. Simultaneously, the overall purview of this market is also increasing rapidly as various cryptocurrencies are involving themselves in multifarious industries including entertainment, sports, medical science, virtual storage system, and many more.
Siacoin (SC) was introduced to the traders nearly three years ago in 2015. During that time, it was adumbrated by the likes of Bitcoin, Ethereum, and few other cryptocurrency big guns. But since the end of 2017, this currency has exhibited a meteoric rise in both its price and market capitalization. One of the main reasons behind this upsurge was the plummeting of Bitcoin’s price. Since BTC has not yet completely recovered from its frequent price fluctuations; this currency continues to pique the interest of several traders across the globe. Here, some of the main aspects of SC would be discussed to elucidate the reason for holding on to it.
The Purpose of Siacoin:
This cryptocurrency was developed in order to provide a secure decentralized cloud-based storage platform to the SC holders. This storage platform is hosted by Siacoin’s own blockchain ecosystem and can be accessed by paying nearly half of the price people usually pay for other familiar storage platforms like Amazon S3, Google Drive, DropBox, etc.
Using this cryptocurrency, anyone would be able to access or host encrypted storage from any part of the world. Moreover, all transactions, storage proofs, and contracts are verified by the public ledger on Siacoin’s platform to ensure an impenetrable security.
Siacoin’s Efficient Internal Architecture:
The entire blockchain ecosystem of this currency is based on a few main constituents that are responsible for its unique features. The development team of this currency took special care in creating this blockchain system to eliminate any possibility of inconvenience or technical problem. The principal entities of SC blockchain include:
- Storage Ecosystem: This is the pièce de résistance of Siacoin’s internal design. The storage ecosystem depends on both providers or hosts and clients or users. Through this ecosystem, the clients can commission certain storage spaces from the hosts. In return for this service, the hosts are handsomely indemnified from the blockchain platform itself. One of the main features of this ecosystem is its flexibility. The hosts are given the leeway to set their own prices, advertise their reliability, and set certain standards of penalties in case some problem occurs. On the other hand, the clients also receive a set of protection to secure their own personal data on this platform. They are also given the freedom to reward the hosts after getting a satiating service.
- File Contracts: File contracts are another very important entity of this currency. Whenever a client and a host agree upon conducting a trade, they draft their own file contracts. The information given on these file contracts are securely stored in SC’s blockchain platform. These contracts also define various terms of storage agreement and make sure that both parties conduct their trade as per their contracts. File contracts are immensely helpful in preventing any sort of unethical and fraudulent activities during trading procedures.
- Proof of Storage: This entity is one of the main reasons behind Siacoin’s impregnable security. In this system, if the host fails to provide the proof of storage within a certain period of time, the payment to that host by his/her is sent to a missed proof address until an incontrovertible proof is submitted. This unique system is very helpful in protecting new clients from malicious hosts.
Benefits of Using Siacoin:
Because of the elegant and efficient blockchain ecosystem offered by this currency, SC holders can enjoy many benefits such as:
- Inviolable Privacy: All data processes on the Siacoin platform are encrypted with unique codes. As a result, these data cannot be accessed by random users without using the specific private keys.
- Security: The encryption also accounts for the security of clients along with keeping their privacy. Also, Siacoin’s inherent systems like proof of storage and file contracts protect the clients from any unethical and malicious activity excogitated by fraudulent providers.
- Affordability: One terabyte of data storage using Siacoin costs about $2 whereas the rate becomes approximately $23 in case of Amazon. This single piece of data proves the affordability of this currency without compromising with the quality of service.
Current State of Siacoin:
As of 8th May 2018, Siacoin holds the 32nd position on Coinmarketcap with a price equivalent to nearly $0.026 and a market capitalization of approximately 897 million USD. Since its recent technical update and roadmap release, more investors are inclining towards this digital coin causing a steady upward trend for both of its price and market cap.
When it comes to certain cryptocurrencies, security is not the factor that readily comes to mind. Siacoin defies this way of thinking emphatically by providing one of the most secure blockchain based decentralized storage systems. Storage systems like Google Drive, DropBox, etc. are extensively used nowadays for storing valuable data. With Siacoin’s blockchain ecosystem, people would be able to enjoy the same facilities by spending a much less amount of money. Ergo, it is quite evident that the worldwide popularity of this coin is not likely to go away anytime soon. Under the circumstances, holding onto SC might prove to be extremely lucrative for the traders around the world by the end of 2018.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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