3 Reasons Why Siacoin Might Prove As A Fantastic Crypto Investment In 2022

As investors in cryptocurrencies are constantly looking for use cases that make sense, Siacoin offers an appealing investment thesis focused on innovation in the cloud-storage market as well as tangibly useful real-world applications. With that in mind and the objective to identify the next cryptocurrency network with the disruptive potential to innovate in highly expanding economic sectors, Siacoin may be a perfect opportunity for crypto investors for 2022 and beyond.

However, for each new investor and crypto enthusiast, it might be challenging to understand some segments of the brand-new blockchain technology and how Siacoin holds the power to disrupt the cloud storage industry for good.

These days, big tech companies seem to be in charge of everything, and cloud storage is no exception. And while corporations like Amazon, Google, and Microsoft are among the leaders in the cloud storage market, one new decentralized network, though, is vying for a piece of this expanding pie. The Sia network—powered by Siacoin—stands out in this oligopolistic market. Decentralized services like Sia don’t have a single point of failure; hopefully, Siacoin may represent the decentralized cloud of the future.

If you’re still unsure whether you should put your hard-earned money into this crypto project, let’s examine the factors that suggest Siacoin might make a fantastic long-term investment for individuals looking for innovative blockchain technologies that are on the rise.

Peer-To-Peer Storage Solutions

Without a shred of doubt, the best peer-to-peer cloud storage platform for cryptocurrencies today is the Sia network. Everybody can take part in the solution provided by this blockchain-based supplier.

In the realm of cryptocurrencies, decentralization is the name of the game. However, decentralized transactions are currently receiving the majority of attention in this field. Decentralized, peer-to-peer solutions have other benefits for cloud storage providers.

One of the main factors contributing to the Sia network’s appeal in this regard is security. However, from this angle, the specifics of how this network functions are fascinating. A particular amount of Siacoin needs to be locked into a contract for a cloud storage provider to be allowed to join the network. These agreements are enforced cryptographically in the blockchain, simplifying the procedure for users and offering security to guarantee that both sides will be happy with the deal.

Both the host and the user (renter) contributed some Siacoin to the agreement. The user is paid in Siacoin if the host doesn’t fulfill its obligations or loses the client’s data. The host is also certain to get payment from the transaction because the renter pays in advance—a win-win situation.

It’s A Reasonable Option For Cloud Storage

It costs a lot of money to run a lot of connected servers. As a result, cloud storage providers are progressively being pushed to raise their fees to cover these expenses. There is actual inflation, and businesses frequently have little choice except to pass expenses on to customers. One terabyte of storage costs around $18 a month, for instance, on Microsoft Azure.

On the other hand, the Sia network only charges $1.22 for the identical service. This is a sizable pricing difference that can be relevant for businesses needing scaled-up cloud storage services. The secular dynamics that are driving the expansion of cloud storage are, if anything, only going to pick up speed over time. Undoubtedly, the pandemic contributed in part to the acceleration of cloud adoption. However, there are many reasons why cloud storage companies will continue to grow over the coming years and decades.

The current cost advantage of the Sia network could be viewed favorably in this context. Expectations are that Siacoin’s value will increase as acceptance increases across the network.

Paramount Security

The Sia network’s security protocols are crucial for people considering this service as a middleman for cloud storage. There are many positive aspects to the Sia network’s decision to prioritize security in this regard.

The Sia network provides a few security advantages over conventional cloud storage providers. The decentralized nature of the Sia network is perhaps the most visible. Since there isn’t a single server that can be attacked centrally, a hacker would have to launch numerous attacks on numerous servers at once to seriously disrupt the system. For those worried about potential cloud-server attacks, it is undoubtedly a plus.

Additionally, the hosts are nameless, and it appears that the level of data transfer security and encryption is now among the highest in the class. It is made anonymous. No one else can access the files since only the owners of the files have the private keys needed to access the data.

The Sia network also exploits redundancy by distributing files among numerous machines. This implies that the renter will be able to access their files at any moment, even if any of the nodes running the network are unavailable for whatever reason.

Final Thoughts

While the cryptocurrency world is currently heavily focused on NFTs, the metaverse, and similar topics, it is important to keep in mind that many other projects are working to improve the solutions that are already in place and that many of them could ultimately be just as revolutionary. Siacoin is unquestionably interesting, and most investors would find it to be a wise decision.

Read more: Cryptocurrency Investment Tips for the Beginners in 2022