Unlike most cryptocurrency ratings published online, the Wise Crypto ratings have nothing to do with the current or future price of the currency. Whether or not a crypto is over or undervalued or priced today is completely irrelevant. Our research focuses on the sustainability of each project, the security, the use case, decentralisation, environmental impact, the technology, the scalability and the developers and teams behind the projects.
Siacoin (SC) Rating = 202/1000
Technology (0 to 300) = 132
- Speed (0 to 50) = 2
Sia allows users to upload 20+ TB per node and reaches bandwidth speeds of 300 Mbps up/down. This is quite fast as compared to decentralized cloud storage platforms. Transaction speeds on the other hand are based on the same principals as Bitcoin and – despite being reduced from 30 minutes to 10 mins – are still terribly slow.
Kraken claims average transaction times of 60 minutes for Siacoin.
- Cost (0 to 50) = 40
Storage on the Sia network is usually priced around the equivalent of $2 USD per Terabyte per Month. With a current Siacoin price of $0.002 USD, users can spend about 1000 SC a month for each terabyte they rent. The cost is a fraction of the price of uploading to Amazons AWS and other cloud storage companies. This is quite affordable, given that it’s a decentralized database. Transaction fees for sending SIA are also quite affordable.
- Scalability (0 to 50) = 20
Sia solves scalability issues experienced in decentralized cloud storage. That’s because the platform uses a clever way of balancing accounts using smart contracts to scale to more users. When an account is created on Sia, the space renter forms only 50 incremental contracts with different hosts. Sia only needs to broadcast the updated version of the contract to the blockchain. Additionally, Sia has an atomic size of 40MBs. Therefore, every file that is uploaded on the platform takes a minimum of 4MB, no matter how large it gets. This means that the platform can scale much further.
The transactional system being based on proof of work however means the payment side is not scalable.
- Reliability (0 to 50) = 35
Sia is indeed reliable. The platform provides users 2-5TB hard drives to store data in an encrypted form away from centralization. Files aren’t stored on the blockchain because that would make for a slow, inefficient and expensive system. The blockchain is used to keep track of accounts. The power of Sia’s blockchain is that it is immutable and using smart contracts process can be automated, so no central body is required to act as an intermediary. In addition, Sia is extremely inexpensive for the type of service it offers.
The blockchain itself being proof of work and centralised means there are always risks attached.
- Environmental Impact (0 to 50) = 10
Siacoin, which is used to buy storage space on the platform, can be mined through Proof-of-Work consensus. The hefty amount of power used to mine the coin has a negative effect on the environment.
- Decentralization (0 to 50) = 25
Sia is an actively developed decentralized storage platform. Users all over the world contribute disk storage from their computers to form a decentralized network. Sia’s blockchain is immutable, and using smart contracts process can be automated, so no central body is required to act as an intermediary. At the current time however there is a POW centralisation issue with the blockchain. It is very early days.
Security (-250 to 0) = -170
- 51% Attacks (-100 to 0) = -85
Sia is even more vulnerable to 51% attacks as compared to Bitcoin. Its network has fewer mining pools as well as hash rate. There are between 10,000 and 50,000 GPUs actively hashing on the network in most instances. This makes it a target for hackers. Nonetheless, the platform improves on security concerns by adding redundancy to files.
- Potential for Being Banned (-100 to 0) = -35
Sia leverages blockchain to store files in a decentralized manner. Users rent the cloud storage space using Siacoin. Unless otherwise, the platform faces zero chances of being banned and offers an alternative solution to centralized cloud storage platform including Google Cloud, Amazon S3 and Microsoft Azure. The proof of work algorithm however remains a major potential stumbling block. The types of data being stored on the network also represents a potential problem as illegal pirate material (or much worse material like snuff, pedo, etc) could place the network at risk.
- Network Vulnerabilities ( -50 to 0) = -50
Like any other blockchain, Sia has some network vulnerabilities that expose it to hacking attacks. The major vulnerability on the platform is the command injection vulnerability which affects the Siaberry’s web app built on the platform. The vulnerability allows attackers to craft shell command to execute on Siaberry device.
Use Cases (0 to 500) = 210
- Initial Main Use Case (0 to 100) = 10
Siacoin has one primary use-case which is to power the Sia blockchain as a payment medium providing incentives for both hosts and clients to conduct transactions on the network. Apart from being used as a primary coin for purchasing storage space on the Sia platform, Siacoin lacks other use cases. This significantly limits usability and consequently, the growth of the platform.
It also remains to be proven if any reasonably sized corporation or even if individuals are willing to use a potentially risky storage medium when compared to the major cloud hosts.
- Mainnet (0 to 200) = 200
On Feb 25, 2018, Siacoin departed from its experimental phase and entered the early enterprise use. Since its launch, the exponentially experiencing nearly 1,200% increase in hosts and a 1,000% increase in paid file contracts. The platform currently supports over 10,000 hosts with ten petabytes of space.
- Additional Use Cases (0 to 100) = 0
Crypto casinos are a valid, legitimate and active use case: there are currently no Siacoin casinos or SIA casinos.
- Additional Working Products (0 to 100) = 0
Sia platform also owns the Sia-fund token which gives its holders the right to receive a portion of Siacoin that are exchanged as part of the transaction whenever a contract is executed on the Sia platform. Its aim is to have the holder focus on bringing new users to the network and improving the platform. Whether this is a good thing is up for debate as with such a limited scope for SIA already, why the need for another token?
Core Development Team and Partnership (0 to 200) = 30
- Core Development Team (0 to 100) = 20
Sia project is owned by Nebulous, Inc, a technology company established in 2014 and based in Boston, MA. In 2015, the company launched the Sia Storage Platform with the help of funding from a couple of ventures including First Start Ventures, INBlockchain, Fenbushi Capital and Raptor Group. The core team members associated with the project include CEO David Vorick, core developers Luke Champine, Johnathan Howell and Zach Herbert. The project is also open-source and allows the community to contribute to its development.
It should be noted that Nebulous Labs have no github commits since December 2018 and David Vorick none since September 2016 while Luke Champine and Matthew Sevey have been active.
- Partnerships (0 to 100) = 10
Sia has partnered with various organizations and startups. Top on the list is ClearSHARE, a decentralized storage system. First star ventures also partnered with Sia to back the Siacoin projects. Other partners include Raptor Group Holdings, Xiaolai Li, Quant Network, Render Token among others.