Siacoin (SC) rose 20% in 24 hours as liquidity circulated around the $2 trillion cryptocurrency market.
Siacoin is a native token decentralized cloud storage blockchain Sia, launched in 2015 to allow users to rent unused storage. With the price increase, SC's market cap increased to $733 million, and its daily trading volume surged 38% to nearly $200 million per CoinMarketCap.
One of the fundamental missions of cryptocurrencies is to solve the concerns of traditional centralized services. Sia remains committed to this philosophy and plans to offer trustless access to secure cloud storage at competitive rates compared to large companies such as Amazon and Google.
Data uploaded to Sia's blockchain is fragmented across 30 encrypted hosts. At least 10 hosts are required for the network to continue functioning to support data retrieval. Users make payments to hosts within the SC, and decentralized storage lessors lock tokens via smart contracts as collateral.
Siacoin operates according to proof-of-work (PoW) consensus as miners add new blocks to the network and issue new coins. Bitcoin (BTC) is also built on his PoW model. The idea is to harden Sia's blockchain against bad actors and hackers, as this on-chain architecture requires expensive hardware and energy to attempt an attack.
Blockchain has become the go-to technology for providing cloud storage due to its cost-effectiveness and borderless access. Matt Henderson, chief strategy officer at Aurora Labs, said blockchain is an ideal combination for cloud storage as it increases flexibility, improves efficiency and ensures optimization.
