SiacoinSia is a decentralized cloud storage network. Currently cloud storage services are mostly centralized with data is stored on a centralised third party server.
What is Siacoin?
Sia is a decentralized cloud storage network. Currently cloud storage services are mostly centralized with data stored on a centralised third party server. Sia’s vision is to create a decentralized storage network through which participants could lend or lease storage space on the network.
How does Sia work?
Sia is a peer-to-peer storage ecosystem that allows hosting or accessing encrypted storage. Services are being paid via the native token of the network – Siacoin. Sia’s platform consists of both providers (hosts) and clients (users). Through the platform, users rent storage space from hosts, and the hosts are compensated for their services in Siacoin.
The terms of the storage space provision is completely determined by the free market. Space providers would have the options to set prices for their storage and rules for storage along with penalties for problems associated with file damage or lost. Users on the other hand would have the option to store copies of their data between multiple providers to ensure security.
Once two parties have come to an agreement on the platform, they will enter into a file contract. These contracts will be stored on the Sia blockchain network. Sia runs on a proof of storage mechanism whereby the storage space provider is required to submit proofs to the network regularly during the term of the contract. If the provider fails to provide such proof, payment will be sent to a missed proof address until proof has been submitted. If the provider continues to miss the request for proof, the contact could even be terminated.
All files stored on the Sia’s network is encrypted. Private key is required to read the data on the stored files.