Sia is a popular decentralized peer-to-peer network that is dedicated to buying and selling of computer storage space. The Siacoin is essentially the currency which users pay for transactions inside the Sia network. So, miners will be paid in Siacoin for their contributions. Sia uses the blockchain technology for enabling distributed networks to arrive at a consensus in a trustless and secure way. The smart contracts are cryptographically secured and there is no chance of interference by third parties.
So, Siacoin mining opens up a new chapter in cloud storage services. Rather than all data centers being run by one company, this cryptocurrency allows everyone to make profits by leasing out their hard drives. To become a prime cloud storage player these days is not easy and you will need to own multiple data centers. You have to build trust inside the market and reach out to millions of customers while competing against big names like Google and Amazon. This is not going to be an easy or affordable proposition; so, the goal of Sia is to emerge as the backbone storage medium for the Internet.
What are the advantages you can get from Siacoin mining?
• When you mine the Sia, you can be sure your files will be encrypted and distributed across a decentralized network. The keys are with you and you get to have ownership of the data. There will not be any third party with access to your files unlike what happens in traditional cloud storage.
• The Sia cloud storage turns out to be much more affordable as it is almost ten times less costly than the existing priced charged by cloud storage vendors. For instance, storing about 1TB data on the Sia network will be about $2 a month while storage costs on Amazon S3 will be nearly $23 for the same amount.
• Sia will store small pieces of the files on multiple nodes spread across the globe. So, there can be no one point of failure. It guarantees the highest possible server uptime just like the other cloud storage services.
• Sia is also open source and many individuals have made their contributions to this software. So, there is an active community which is continuously working towards building Sia- based innovative applications.
Why should you resort to Siacoin mining?
There are quite a few reasons for creating cloud storage on a blockchain. For those storing data on the Internet, data privacy has always been a major point of concern. This is because big companies have always used centralized data to make profits and the users have never been part of such earnings. But, with decentralized solutions, the users can enjoy greater privacy and control. Another important reason is that the centralized storage is vulnerable to extensive hacks. But decentralized databases can increase cloud storage security using technical designs which are much more secure.
Besides the Siacoin there are many other blockchain projects like FileCoin and MaidSafeCoin which have emerged as popular cloud storage solutions. They are on the whole very similar to one another and they ensure that people all across the world can use under-utilized drive space. So, all users needing extra storage may easily pay for these blockchain-powered services using the Siacoin. Sia however competes against both decentralized and centralized storage solutions.
When you choose data storage services, you need to consider factors like data privacy and security. Apart from these you must look at the prices of storage. It is beneficial that Sia offers a much lower rate than centralized storage services. This cost benefit will give it a huge edge over its competitors and will be responsible for more and more engaging in Siacoin mining.
An interesting feature of Sia is that you can pay for all its services through the Siacoin or SC. This is in contrast to the other blockchain projects where there are many payment options for users. This strategy may have its advantages and shortcomings. While on one hand the projects which provide multiple payment options are prone to risks since users can bypass native cryptocurrencies, on the other, Sia has only one payment option which makes it hard to attract new users. This problem can be resolved by the project teams by adding SC to other exchanges.
There are many projects which are against ASIC mining, but Sia still allows it. The project has continued to use the Proof of Work algorithm so as to stop 51% attacks, although mining will be comparatively centralized amongst only a handful of manufacturers and pools. There are some important factors which miners cannot afford to disregard. Security is a prime concern and one of the pools Sia Mining has been able to attain greater than 51% hash power many times. This has become the official mining pool for those developing the Siacoin. The Sia project also continues to use ASIC mining while there are others which have dramatically changes their algorithms without much warning. These decisions may have made it possible to have more network decentralization, but they have left many miners who had invested in the mining rigs completely in the lurch. This is more so because ASIC rigs are very hard to restructure when the consensus algorithms are suddenly changed. There are many goals for the future of Sia mining and these include sharing of files with non-Sia users, releasing of Sia test net etc and many other technical advancements. These are directed to making this platform more user-friendly than ever before.