Siacoin Surges 20%, Signaling Demand for Decentralized Cloud Storage
The price of Siacoin (SC), the native token of the decentralized cloud storage platform Sia, has jumped by 20% in the past 24 hours. This surge coincides with a general movement of liquidity within the cryptocurrency market, currently hovering around a $2 trillion valuation.
Sia, launched in 2015, allows users to rent out unused storage space on their devices. As its price rose, Siacoin’s market cap surpassed $733 million, while its daily trading volume saw a 38% increase, reaching nearly $200 million according to CoinMarketCap.
One of the core aspects of cryptocurrency is its potential to address issues within traditional and centralized services. Sia embodies this principle by aiming to provide users with secure and competitively priced cloud storage alternatives to dominant players like Amazon and Google, all while emphasizing trustless access.
Data uploaded to the Sia blockchain is fragmented and encrypted across a minimum of 30 different hosts. To ensure data retrieval functionality, the network requires at least 10 active hosts. Users pay these hosts in SC tokens, with storage providers locking their tokens as collateral through smart contracts.
Sia uses a proof-of-work (PoW) consensus mechanism, reliant on miners to add new blocks to the network and generate new coins. Similar to Bitcoin, this model theoretically bolsters Sia’s blockchain against malicious actors and hackers, as the on-chain architecture requires significant hardware and energy investment for any potential attack.
Blockchain technology, with its advantages like cost-effectiveness and borderless access, is emerging as a viable option for cloud storage solutions. Matt Henderson, Chief Strategy Officer at Aurora Labs, emphasizes the ideal pairing of blockchain and cloud storage, citing its potential to enhance flexibility, efficiency, and optimization.
You can present your own thoughts as comments about the topic. Moreover, you can follow us on Telegram and YouTube channels for this kind of news.