Demand for decentralized cloud storage indicated by Siacoin’s 20% surge
Siacoin (SC) experienced a significant surge of up to 20% within a 24-hour period as liquidity flowed through the $2 trillion cryptocurrency market.
Siacoin, the native token of the decentralized cloud storage blockchain Sia, was launched in 2015 to provide users with the opportunity to rent out their unused storage space. As the price of SC rose, its market capitalization increased to $733 million, and its daily trading volume saw a surge of 38%, reaching nearly $200 million per CoinMarketCap.
Siacoin’s price | Source: CoinMarketCap
In line with the underlying mission of cryptocurrency, which aims to address issues within traditional and centralized services, Sia aims to offer trustless access to secure cloud storage at competitive rates compared to major players like Amazon and Google.
Data uploaded on Sia’s blockchain is fragmented and distributed across 30 encrypted hosts. To ensure data retrieval support, a minimum of 10 hosts is required to remain functional. Users compensate hosts using SC, and decentralized storage leasers lock the tokens through smart contracts as collateral.
Siacoin operates on a proof-of-work (PoW) consensus, similar to Bitcoin (BTC), where miners add new blocks to the network and generate new coins. This PoW model strengthens Sia’s blockchain by deterring bad actors and hackers, as it requires substantial hardware and energy commitments to attempt attacks.
Blockchains have become a popular choice for cloud storage due to their cost-effectiveness and the ability to access them from anywhere. Matt Henderson, the Chief Strategy Officer of Aurora Labs, stated that blockchain is an ideal companion for cloud storage as it offers flexibility, enhances efficiency, and ensures optimization.
Read more: Blockchain and cloud computing: Surprising allies that mutually benefit each other
Follow us on Google News
