What is Siacoin?
A Beginner´s Guide to Buying, Selling, Using, and Mining Siacoin:
An In-Depth Siacoin Guide by True Poker
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Few technologies are as prevalently used, yet widely misunderstood as the cloud. Cloud based technology is only matched in popularity by its nebulous definition that so few are able to nail down. Everyone uses it. But many don’t understand how it works.
The same could also be said about blockchain. Many people know about it, but many of those people people don’t understand how it works. So what do you get when you combine blockchain with the cloud? Turns out it’s something not as complicated as you might think. And it’s called Sia.
What is Siacoin?
Siacoin (SC) is a cryptocurrency that combines the power of blockchain with the innovation of cloud storage. There are many popular cloud storage platforms out there like Dropbox, Google Drive, and Amazon Cloud, all of which are centralized. Now there is Sia.
The cryptocurrency uses blockchain to host a cloud storage platform that is open sourced and decentralized, meaning that data is distributed in pieces to the storage hosts. Blockchain is what facilitates the data and payment for storage transfer. Centralized servers have specific weaknesses as small amounts of failure are more catastrophic and data is unencrypted and thereby prone to misuse. Where a centralized server fails, Sia succeeds. Arguably most beneficial to Sia users is the price, as Sia is significantly cheaper than its competitors.
A cryptocurrency by definition is an alternative form of money that is built on a blockchain. Blockchain is a decentralized, open source platform that utilizes the unused computing power of individual users to power the system. The blockchain also acts as the ledger for the currency, securely recording every transaction that takes place. As a transaction is approved, it is entered into the chain as a block, and is unalterable and completely secure.
Each cryptocurrency has a coin which users buy and sell with. The coin for Sia is called Siacoin (SC). Users can store their data on the Sia cloud by paying for the service with Siacoin. The web is full of helpful conversations threads and sites like Reddit that further define Sia.
How Do I Buy Siacoin
Buying Siacoin is an easy process when following the outlined steps. First, you’ll need to purchase a base cryptocurrency that will be used to trade into Siacoin. Bitcoin (BTC) and Ethereum (ETH) are popular options and are easy to get a hold of through exchange sites like Coinbase and Bittrex. Those sites allow purchasing BTC and ETH with cash or credit card. From there, an exchange site like Poloniex or Shapeshift.io can be used to trade for Siacoin. Finally, move the newly purchased Siacoin to the Sia wallet for storage.
How Do I Turn Siacoin Into Cash?
When the time is right to sell, it’s just as easy to turn your Siacoin back to USD as it was to purchase it to begin with. First, transfer your Siacoin from your wallet into the desired exchange site. Then, use the exchange site to convert your Siacoin back into a base cryptocurrency like BTC. Then, use Coinbase to transfer the BTC into your fiat currency. Lastly, you can visit an ATM to make your withdrawal.
How To Use Siacoin?
The main way to use Sia is by storing data on their decentralized cloud server. Storage space is purchased with Siacoin where your data is safely and securely stored. This is because Sia encrypts your data and gives you alone the keys. Also, your files are split across the decentralized network. Both of these factors mean that no single company or third party can use the information stored in your files.
Not only can you pay to rent storage space for your data, but you can also rent out your own available storage space in return for Siacoin. As a host, you store the information for the agreed upon time, and once the time is complete, you are paid in Siacoin.
The third and final main way to use Siacoin is by investing in it. Siacoin can be purchased and stored in your digital wallet for the purpose of investing. Because Siacoin is a form of currency, its value will rise and fall based on supply and demand. As it does, you can watch its exchange rate into other currencies and thereby buy and sell Siacoin when it’s at a favorable price for you.
What Is Siacoin Mining?
Siacoin mining is where you loan unused computing energy to help power the blockchain. Miners are then paid in Siacoin for supplying the power. Transactions are processed and storage space is provided for renters. All of this takes place through users giving up their computing power. The computers act like a calculator, running complex equations to help process the transactions. It’s not always easy to mine a coin, but it can be highly profitable.
How To Mine Siacoin?
As Siacoin is mined, new coins are created. This helps increase the market cap for the coin, and also the profitability of mining Siacoin. In order to mine Siacoin, you’ll first need to download and install a software that allows for your computing power to be accessed. You’ll also need to determine what type of graphics card is run on your GPU in order to install the correct version of the software. The power of your graphics card will help determine the level of profit that can be generated from mining. Also, your Siacon wallet address will be needed to link with the blockchain in order to mine Siacoin.
How Will Siacoin Scale?
The more people use Sia as their cloud hosting storage site, the more transactions will take place with the coin. This growth, known as scaling, needs to be processed by the network while avoiding serious amounts of lag time.
Sia had a big amount of growth in their price chart back in late 2017, leading to a scaling hurdle that they successfully maneuvered. While the market cap has decreased of late, the popularity of cloud storage means people will continue to look to Sia as a crypto option.