Based on the Ethereum network, Sia aims to revolutionize a service that is currently helmed by behemoths such as Amazon, Microsoft and Google

SiacoinRepresentative Image - Pixabay
Bitcoin and Crypto Market Watch Wednesday, December 29, 2021 - 19:22

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Bitcoin offers us decentralized transactions, whereas the Ethereum network offers us various decentralized services, one of them being data storage. Data storage solutions are an absolute necessity in the 21st century, with smart devices and accessories becoming part of our lives and society at an exponential rate. Some cryptocurrencies provide the option of decentralized storage, which changes the previous approach on its head. Today we track one such crypto – Siacoin.

Siacoin: Introduction and purpose

Siacoin (SC) is the native token of the Sia network, which is built on the Ethereum network and serves as a utility token for offering decentralized cloud storage services to users.

Siacoin diagram

The mere fact that Sia is a decentralized network gives it a chance to compete with the likes of Amazon or Google, the two big centralized cloud storage providers. Therefore, the main goal of Sia is to dethrone these centralized giants and put decentralized platforms on the pedestal.

As of now, Siacoin has an uncapped supply with more than 49 billion token currently in circulation. Users pay the network using Siacoins in order to store files and are also able to store multiple files at once with ease without causing any trouble to the network’s functionality. The fees taken is relatively low and considerably less than the fees that traditional cloud storage services.

Siacoin currently ranks among the top 120 cryptocurrencies in the world with a price tag of around $0.015 per token, with more than $765 million market capitalization.

Short term technical analysis

Siacoin (SC) started 2021 with a price tag of less than $0.0035 and hit an all-time high of $0.057 back in the month of April. Recently, it has been rejected from a large confluence of resistances at the .236 retracement and a trendline at $0.018, resulting in a 13% correction. It is currently residing at support situated at the local golden pocket of its rise $0.0155, and can test lower supports at $0.0148 and $0.014.

Siacoin chart

Source: TradingView, Binance

With a downtrend trend in play, Siacoin will need to break and hold resistances above at $0.024 to confirm any continuation of its bullish structure.

Future potential

Siacoin is one of the most underrated cryptocurrencies right now when it comes to utility. Although its price may not have gained a lot of traction due to its immense and virtually unlimited supply, it still has managed to revolutionize how data is stored online.

Using the Sia network as a decentralized data storage service could reduce the need to use centralized storage alternatives like Google, Microsoft, or Amazon since they are far more expensive than the decentralized ones and do not offer the privacy and security that the Sia network provides.

Overall, it is highly likely that cloud storage may become one of the most vital features of decentralization in the near future. Siacoin will benefit the most when that happens.

Disclaimer:This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

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