1. Project introduction

Sia is a decentralized cloud storage platform secured by blockchain technology. The Sia storage network leverages underutilized hard drive capacity around the world to create a data storage marketplace.

Sia has a few important terms that you'll want to get familiar with.

(1) Node: Your instance or installation of Sia.

(2) Renter: Someone who uploads files to the network.

(3) Host: Someone who lends their storage space so others can upload files to the network.

(4) Contracts: Formed between renter and host, contracts determine how much data is being stored, for how long, and at what price. These are automatically tracked and completed by the software and blockchain.

(5) Siacoins: The cryptocurrency that powers Sia.

(6) Siafunds: A secondary, revenue-sharing token on the network that grants the holder Siacoins for every completed contract.

When a file gets uploaded to Sia, it gets split up, encrypted, and sent all over the world. Renters upload files, hosts store those files, and everything is automated. Once you upload your files, the network ensures that they're always accessible to you by copying them multiple times. And they're never accessible to hosts because they only receive pieces of whole files that are already encrypted.When you upload files to Sia, you become a renter. You upload files to other users who have made their space available, called hosts. We use the term renter because Sia creates contracts with other hosts: Hosting means you are contributing your excess storage space to Sia. You're helping to keep data where it belongs – safely in the hands of those who uploaded it, the renters. You also earn Siacoin, the cryptocurrency that powers the Sia network. Siacoin can be used to purchase your own storage space, or converted to other cryptocurrency or fiat on crypto exchanges.

2. Application

There will never be a cap on the number of Siacoins generated. When Sia is the industry-standard storage layer of the Internet, the network will need lots of Siacoins to fulfill all those contracts. Additionally, the Proof of Burn mechanic functions will be developed to eliminate coins from the supply, so there needs to be a constant allowance of new Siacoins being created. By 2022, there should be about 50 billion coins in circulation.