Siacoin explained – What is Siacoin & is it really the AIRBNB for hard drives?

in today’s episode of crypto talk we’ll be taking a look at the cryptocurrency saya coin it’s been described as some of the Airbnb for hard drives we’re going to find out a little bit about how it works what it does and how you can make money renting your hard drive space to other users so stay tuned we’ll be right back [Music] sigh poin is currently the twenty fourth largest cryptocurrency in the world it has a market cap of around two hundred and forty four million dollars and one of the things that I like about this cryptocurrency is that it’s fairly easy and it’s fairly straightforward to understand the simple idea behind saiyr coin is that when you’re using your computer you have ample harddrive space that you’re not necessarily using SIA keine solves this problem by renting your unused hard drive space to other users for those of you that watch the HBO show Silicon Valley you’ll be very familiar with this concept it’s almost identical to the Pied Piper concept it is allowing users to download the app and once they have the app it allows them to rent out their unused hard drive space or it allows other users to store files on their computer or network device its security is by decentralization and encryption so if I upload a file to the sea and network what happens is the file is then chopped up into hundreds of little pieces or thousands of little pieces and a little bit of that data is encrypted and stored on each device and what this means is that no one person or no one device has the complete file and the only way to get that file back is with your private encryption key so it allows you to safely store your data on any host while still giving you the security and the confidence that your data is safe and one of the things that I see is a huge benefit of this technology is that you’re relying on a platform and encryption rather than an individual company so if you’re using Amazon AWS services or Google Drive you’re relying on Google and Amazon for their security and if you’re using Gmail or if you’ve agreed to some of these services you’ll notice that they start on biting you with ads and Google actually reads through your email so it can figure out how to better target you so from a privacy aspect switching from an AWS or a Google service and over to this SIA coin is is a huge deal because now you’re 100% responsible for your own files you’re completely reliant on the protocol and the encryption which would be my preference over completely relying on Google and Amazon to look after my data the other huge advantage is cost when I did a comparison to the Amazon AWS service it turned out to be when I ran my calculator about between five and ten percent of the cost of of AWS now that does come at a cost and AWS and other web services are great for speed and reliability because there are always online them because they’ve been designed and specialized systems have been designed for this I don’t understand any way that the blockchain technology would be able to match other web services or centralized web services in terms of just raw speed so I think that there’s plenty of great applications I just think that for any application that requires a lot of speed I don’t know whether the additional overhead that say is going to add will make it still an attractive solution but one example of one example or a use case I can give you is that I used to own a printing business and we used to print banners posters and large format graphics so when we were receiving the files from the customer we would probably want to store this data on the cloud which is the most expensive way to do it but once we have received the file from the customer and we’ve printed the file we then need to store that data just in case the client ever wants to reprint the order or just in case we need to check so after we’ve successfully finished that order and we need to store that data it would be 10 times 50 times more efficient to sorts to store that on the syukur network then it would be to store that on Amazon AWS and there are hundreds more applications like photo storage video storage any application that requires large amounts of data that aren’t frequently accessed or aren’t necessarily sensitive to the speed of the network one of the disadvantages of using the sign at work is that because it’s new it’s not going to have all of bells and whistles of Dropbox it’s not going to necessarily have the ease of use and as more developers come onto the platform they’ll obviously be adding features but Amazon and the other cloud service providers have had quite a large head start they’ve got larger budgets or have had in the past larger budget so sire the sire coin in sign it it’s in a little bit of a catch-up stage now where it’s having to add that functionality that’s already existing in these cloud storage solutions one thing I did see after watching a few YouTube videos is I think some people have actually misunderstood the way that the SIA network will run they’ve made it sound like it would be profitable to lease out your hard drive space and after I ran the numbers and after I looked at say a typical 1 terabyte hard drive I don’t see any way that you could be renting out personal hard drive space and even pay for the electricity the extra electricity that your hard drive would consume little alone to make a profit from it the cloud storage space is very competitive Amazon and Google and all these other players have been special building specialized hardware to do exactly this so the fact that you have a couple extra gigabytes or it may be even a terabyte of free space on your hard drive is great and there’s definitely some possibility for use but be aware that you’re not just competing against another Google company that has another terabyte hard drive you’re competing against a company that has engineers that have built you know huge radar is huge systems that just sort of store data so there is a little bit of an imbalance there and that’s something that I think needs to be addressed the other thing too with cycline is that it’s always going to reflect the market price of storage because the users have to buy the hard drive space with Saye coin and you’re getting paid in Psych owing to lease your space so it’s a free market and as more people use the network or as more demanding increases on the network then the prices will go up and there’s more people at hard drive space to the network the prices will go down so in that regards I see it as a great market place but at the moment I think that the market place would really be more targeted at large computer systems or larger servers maybe that have a lot of hard drive space and maybe they can get over that hurdle of the cost of electricity because any of the old hard drives have electric motors in them they have to spin up they have to stop using constantly accessing data is going to use a lot more power and it’s also going to decrease the lifespan of the hard drive so if we switch to a solids they dry they use a lot less power but a solid-state drive has the problem that if you read and write to the same section hundreds of millions of times eventually that section becomes bad so because the margins and there’s not a lot of money in it if you start having hard drive problems if you start having to do maintenance issues or have any issues this there’s no profit in it for you right now to be renting out your hard drive space one terabyte of data on the Amazon Cloud would cost somewhere between 11 and 23 dollars a month on the cycloid network when I use their calculators it showed to be about a dollar eighteen and one final topic I wanted to touch on is that this coin is also my Nobel so what’s happening is you can buy signs on an exchange you can lease your hard drive out and earn signs or you can mine seiyya coins and the miners are actually securing the networks to make sure that as transactions are happening somebody can do those confirmations and the larger the network and the more people mining the more difficult it is to carry out a 51% attack so the more secure that network actually is so for that reason it’s proof of work rather than proof of stake and I don’t see an issue with that because of the extra security that it brings so overall I see sire coin is a really interesting technology I see that there is a lot of potential I think that there is a lot of room to grow but I think we need to be honest with ourselves as well and stop telling people hey you can make money by renting out 20 gigabytes of space on your hard drive because if you try to do that I think you’ll be a little disappointed with the results if I’ve made any mistakes in these videos please help me by commenting below I’ll update any of the information that’s not correct and pin it to the top here so until tomorrow see you later follow me every time somebody like one of my videos I water these plants every time somebody subscribes to my channel I give them the trees every time somebody shares a video on Facebook so if you like gardening dogs America or cryptocurrency you should support this channel [Applause] [Music]

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