Sia (SC): fondamental analysis

Sia (SC): fondamental analysis

  • Arnaud Malfoy
  • Sunday, Apr 29, 2018


Sia is a decentralized cloud storage which uses spare storage space by individuals and provide it to other individuals in need of storage space. The mission is to compete eventually with AWS, Google Cloud and Microsoft Azure.

Sia logo

Sia copyright


Since users are pooling their storage space to provide cloud storage, it is crucial to have a very high security in order for your data to be safe and unreadable by the individuals storing it. Sia encrypts your data, split them in tiny pieces and sent them to different hosts across the world making it totally safe for the users. It is actually safer than the big centralized cloud servers or Storj which is more centralized.

Low cost

Since the system is completely decentralized and uses spare storage space, it is really cheap, it’s about 2$ per TB per month vs more than $20 for AWS. So it’s certainly extremely enticing for anyone looking to save their data in the cloud. However, the other side of the coin is the very low rewards for anyone providing space storage space. The price will need to move up a bit to provide enough incentives.

**Open Source

The system is completely open source which enables anyone to contribute to the code and also build smart contracts on the platform.

Ease of use

I think they need to work on making it easier for a normal user to easily rent or provide storage. Also, you need to make a deposit to rent space and need to download the entire blockchain. Furthermore, you can only rent space with Sia currency which limits the spread of the system.


Sia copyright


Due to the blockchain limitation, it is pretty slow compared to AWS or Storj so right now, it’s not as easy to stream videos and you can’t have your website stored on it. Basically right now, Sia is great to store static data but for anything that needs to be quickly and frequently updated, it’s not quite possible yet. In order to be able to compete with AWS or Azure, they will really have to upgrade their infrastructure but it is on their roadmap.


This is probably their biggest strength. Sia ecosystem is infinitely scalable which is not the case for their direct competitor Storj. Being one of the main pain point in this industry, having it built fully scalable initially is much easier than trying to fix the issue later on (see Ethereum).


There is a big supply of tokens (circulating supply: 34 Bn) with an 27% annual inflation rate. The currency is mineable. The token is available notably on Poloniex, Upbit and Bittrex.


The website has a lot of information. The whitepaper is really detailed and well done. The community is quite big with 31k subscribers on Reddit and 102k on Twitter. The team is currently raising cash to hire more developers which should accelerate the development.

Sia website

Sia copyright


This is one of the earliest project I fell in love with. I think the idea is great, and highly necessary to avoid having our data hijacked by Amazon, Google or Microsoft. The recent addition of the token on a Korean exchange doubled the price overnight and should add more liquidity in the long term. We should see a nice uptick in the short term and a much bigger one in the long term. I’m not a financial advisor and you should do your own research before making any investment.
Post initially published on Steemit