Siacoin (SC) jumped as much as 20% in 24 hours as liquidity circulated around the $2 trillion cryptocurrency market.
Siacoin is a native token for decentralized cloud storage Sia, launched in 2015 for users to rent out unused storage units. SC's market capitalization rose to $733 million as the price rose, and daily trading volume rose 38% to nearly $200 million, per CoinMarketCap.
One of the primary missions of cryptocurrencies is to fix concerns in traditional and centralized services. In keeping with this ethos, Sia plans to provide trustless access to secure cloud storage at competitive prices compared to larger entities like Amazon and Google.
Data uploaded to Sia's blockchain is hashed across 30 encrypted hosts. The network requires a minimum of 10 hosts to remain efficient to support data retrieval. Users pay hosts in SC, and decentralized storage tenants secure tokens via smart contracts as collateral.
Siacoin operates with Proof of Work (PoW) consensus, relying on miners adding new blocks to the network and issuing new coins. Bitcoin (BTC) is designed around the Proof of Work (PoW) model as well. The idea is to harden Sia's blockchain against bad actors and hackers since this on-chain architecture requires expensive hardware and energy commitments to attempt attacks.
Blockchain has become a preferred technology for providing cloud storage due to its cost-effectiveness and limitless access. Blockchain makes an ideal pairing for cloud storage because it allows resiliency, improves efficiency and ensures optimization, said Matt Henderson, chief strategy officer at Aurora Labs.
