Will Siacoin reach $1: Siacoin is one of the most popular and trending altcoins. Siacoin is a decentralized Cloud Storage platform based on blockchain technology that offers the best affordable cloud storage services in the market, where there is no need to create an account, server, and third-party involvement. Basically, the aim of Siacoin is to create the most efficient, user-friendly, cheap, and secure storage platform. After Bitcoin, many cryptocurrencies started offering more services that would slowly replace centralization. Let’s discuss when will Siacoin reach $1.
The Sia network is one of the best cryptocurrency networks that provide such services, and its native token Siacoin (SC) has recently become one of the biggest cryptocurrencies of 2021. In other words, services that would eliminate the need to have third parties would usually regulate the services at hand.
But what has determined the success of Siacoin, and can it continue to grow at the same rate in the future? Knowing the answers to these questions could be the turning point that makes you decide on whether you should invest in this cryptocurrency. So, to answer those questions, you first need to know about Siacoin in general, its price history, future goals, price factors, and many more.
How Siacoin (SC) works?
Siacoin working is simple the platform connects user who wants share unused hard drive storage with the user who wanted storage, in which blockchain provides security for users and host. So, the vision is clear on the platform you will have full control over data and storage that minimize the risk of data misplacing, hacking.
Nebulous Inc. is the parent company that launched the Sia platform in 2015 which is based in Boston. The original idea behind launching Siacoin is of David Vorick and Luke Champine. The native currency of the Sia network is Siacoin (SC). It is considered one of the first cryptocurrencies to provide cloud storage services in a fully decentralized manner.
Sia network has other underlying projects that make its services possible, namely those of SiaStream and Skynet. The former offers decentralized media streaming, while the latter provides the other main features of Sia. Unlike cryptocurrencies such as Bitcoin, Siacoin does not have a limited supply. An unlimited supply often entails inflationary properties. This unlimited supply is key to benefiting everyone in the network since if the supply was limited and its price would increase, the demand for storing data in the Sia network could decrease.
As of 2021, the storage used by people in the Sia network has been growing in Terabytes, where more than 700 Terabytes have been used in the first two weeks of May 2021. Like other cryptocurrencies that offer more services than just transactions, Sia uses smart contracts. Such smart contracts in the Sia network are known as File Contracts. File contracts last 90 days, and a host is required to provide the storage to the users. After 90 days, the host needs to prove that data is still being stored by sharing a portion of the data. All of this process of proof is known as Proof of Storage. The host is rewarded with SC if they can prove that storage is being provided after 90 days and that the proof of storage is valid.
User data is decomposed into 30 parts so that it is uploaded quicker. This is achieved through Merkle Tree technology, or also known as a hash tree. As the name suggests, a hash tree is formed as a tree, where each block is linked with one another, forming a tree-like structure and achieving higher efficiency. Erasure coding is another process involved in file contracts, where the files are stored redundantly. Due to this redundancy, 10 out of 30 parts of a decomposed file are sufficient to recover all the files if the host goes offline and 20 files are not accessible.
If the host fails to prove that the data is being stored through proof of storage after 90 days, the network automatically finds another host and transfers all the data to the other host in a process known as file repair. If file repair cannot find a new host, the user is refunded for unused Siacoins allocated on storing data.
As a consensus mechanism, Sia uses Proof-of-Work (PoW), similar to Bitcoin. The circulating and total supply of Siacoins is around 47.8 billion SC. But there is another token used in the Sia network, which is Siafunds (SF). SF are security tokens that are used to grow the network by incentivizing its owners by generating revenue. Owners of SF earn 3.9% of every transaction fee required for storing data. This comes from rent storage fees, bandwidth costs, or host collateral. There are only 10,000 SF in circulation, and 8,000 are owned by the Sia network team, Nebulous.
Siacoin entails much more privacy and anonymity when compared to traditional data storage options. The data in Sia is encrypted, broken down, and the host that shares the storage cannot access your files (unless they get your private keys). Traditional cloud storage options, on the other hand, can access your data and may use them for manipulative purposes.
Also, Sia cloud storage is much cheaper than the likes of Google, Amazon, or Microsoft. Some external storage applications or projects developed on the Sia network have made data storage possible for Sia. The main ones are Filebase, Skynet, Nextcloud, etc.
Will Siacoin reach $1? Price Analysis of Siacoin
The mechanism behind Siacoin makes it a unique crypto coin. According to Coinmarketcap, Siacoin had a starting price of around $0.00004 when it was first launched in the third quarter of 2015. It had a relatively stable price for a few months and then had a bigger increase, reaching $0.001 by June of 2016. The price fell to around $0.0004 in the rest of 2016 and the first quarter of 2017. In April of 2017, the price started a bullish run, reaching as high as $0.02 in June. The price got stable again to around $0.004, but then had another big increase in January of 2018, following the bullish runs of a lot of other cryptocurrencies. The price reached very close to $0.10 for the first time that month.
In January of 2021, the price of SC started following another bullish trend of other cryptocurrencies, where one of the factors might have been the BTC halving of 2020. The price started increasing at quick rates, and it has reached as high as $0.06 in April of 2021. The price has started declining again and averages around $0.03 midway through May of 2021. This suggests that the price of SC is yet to exceed its highest of all time. Siacoin has put a moderate performance in this year, started the new year at $0.0012 USD, and showing consistent growth coin reaches to $0.0034 and obtained a price change of 134%.
If you want to know more about when will Siacoin reach $1, don’t miss to check Siacoin forecast in year by year prediction data: Siacoin Price Prediction 2021, 2022, 2025, 2030