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Why I’m happy I lost $1,000 on SiaCoin

About 15 months or so ago, I bought some SiaCoin using Bitcoin. At the time, it was about $140 worth. Today, thanks to Bitcoin’s rise, it would be worth about $1,000.

But I lost mine, thanks to Sia’s protocol, so I now have $0. But it’s not Sia’s fault. It’s mine. And I’m happy it happened.

Sia is a company that, like Storj, FileCoin, and MaidSafe, promises to help you monetize the extra storage space on your hard drive in return for tokens.

The way Sia works is as follows:

You decide you want to lease out your hard drive You download a local file (Apple and Mac are generally available). You install it and set it up, telling the protocol how much you want to rent

Now, here’s where Sia differs (as far as I call tell) from its competitors. (Keep in mind, I am not saying that this is better or worse, I am just calling it out.)

Storj immediately starts paying you. FileCoin doesn’t have a product yet. But, with Sia, before you can participate in the network, you have to buy some SiaCoin, which is a signal that “you want to participate in the value creation and distribution of the network.”

You then “stake” part of your money to the network that basically signals your financial commitment to the project.

Then, you leave your computer on and files (which are encrypted and sharded) are placed on your hard drive from around the network.

Here’s the thing though.

Sia only works if the files are available when the end user requests them. At a simple level, if your file is on my computer but my computer is off, you cannot access your files. Imagine if Dropbox or Google Drive were never available. You’d quickly look for an alternative.

That’s what Sia wants to avoid, so they way it addresses that problem is by creating a financial mechanism that punishes you for having your computer offline.

I don’t know the tec...

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