Sia is cryptocurrency software that allows any computer running it to rent unused space on hard drives to users who want to store files.
Sometimes called the "AirBnB of hard drives," Sia is similar to the cloud storage solutions offered by tech giants like Amazon or Google, with the difference being that instead of relying on a single company to manage and store its data, its users rely on software and a distributed network of global computers.
To achieve this, the files stored by the Sia network are divided into very small parts, so that only a small part of each one is stored on a hard drive. Files are also encrypted, so network users can rest assured that their data is protected from unauthorized access.
Anyone who wants to store files on another Sia user's hard drive can simply pay for the privilege using Siacoin, the platform's native cryptocurrency.
HOW DOES SIACOIN WORK?
Siacoin is the currency of the Sia network. Renters pay hosts in Siacoin to use their hard drive space, and hosts are paid only after they have proven that they are storing the file in question.
Sia achieves this functionality through a form of smart contract called a "file contract", which establishes parameters of the host-tenant relationship, such as price and uptime commitments.
These contracts typically last 90 days and are automatically enforced by the network.
When a file agreement is completed, the host must prove that it is actually storing the data it claims to have on its person, through a process known as proof of storage, which allows the host to prove that the small portion of the data that is storing is, in fact, part of the tenant's file.
The host will be paid in Siacoin if this proof is added to the blockchain within a stipulated time frame.
Before files are sent and distributed to hosts, Sia divides them into 30 encrypted parts. This ensures that the network is not subject to a single point of failure.
The Sia software also uses a technology called erasure coding, which builds redundancies to ensure that the user can always access their files, even if up to 20 out of 30 hosts are offline.
SOURCE: Kraken.com
