Siacoin (SC)

Sia is a decentralized cloud storage platform and a data storage marketplace.

Sia is a decentralized cloud storage platform and a data storage marketplace.

 It encrypts and distributes files across a decentralized network. Users control their private encryption keys and own their data. This is unlike traditional cloud storage providers.

Sia's storage can cost upto 90% less than leading traditional cloud storage providers. These charges are paid using the native token Siacoin (SC). According to the project website, storing 1TB of files on Sia costs about $1-2 per month, compared with $23 on Amazon S3.

Here's how it works:

Step 1: Files are divided into 30 segments

The Sia software divides each file into 30 segments using "Reed-Solomon erasure coding" which is also used in CDs and DVDs. The data can be recovered fully using just 10 of the 30 segments. This means that even if 20 of the 30 hosts go down, the data can be recovered.

Step 2: Each file segment is encrypted and then distributed

Each file segment is encrypted using the open-source Threefish algorithm before it is distributed to hosts across the world.

Step 3: Files are sent to hosts using smart contracts

Storage renters enter into file contracts (smart contracts) with hosts for pricing, uptime commitments, etc. Service Level Agreements (SLAs) are stored on the Sia blockchain and automatically enforced by the network.

Renters and hosts use Siacoin (SC) for payments. File contracts are usually for 90 days and hosts provide proof of storage using Merkle trees.

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