Siacoin (SC)

The Sia protocol uses file contracts to define the terms between renters and hosts. Renters pay in Siacoin, while hosts must prove that they continue to store the agreed data over time. These proofs are recorded on the blockchain, and hosts can be penalized if they fail to meet their obligations. Files are encrypted before leaving the user’s device and split using redundancy techniques, so no single host receives a readable copy of the full file.

SC plays several roles in the network economy. It is used to pay for storage, compensate hosts, and support collateral arrangements that help align incentives between participants. Sia also uses a proof-of-work blockchain, making it distinct from many storage projects that rely on other base layers.

The project’s appeal lies in combining lower-cost storage markets with user-controlled privacy and resilience. Its success depends on host reliability, renter adoption, developer activity, and competition from both traditional cloud platforms and other decentralized storage networks.