Why does Sia use its own blockchain?
Sia uses a custom, proof-of-work blockchain designed specifically for facilitating payments and file contracts.
We believe there are a few important reasons for Sia to have its own cryptocurrency and its own blockchain:
- It gives the Sia community control over its own destiny. The last thing we want is for an enterprise-grade storage network to run on a technology that the Sia community does not control. If Bitcoin or Ethereum have network congestion, or if Ethereum forks off, or if some new vulnerability is discovered, we don't want Sia to be affected, or subjugated to another community's roadmap.
- It helps align incentives across the decentralized network. Miners get rewarded in Siacoin for securing the blockchain, hosts receive Siacoin for selling storage space, renters pay in Siacoin to buy storage space.
- It allows the Sia network to use smart contracts built specifically for file storage. A Siacoin can do only two things - it can be transferred from one user to another, or put into a file storage contract on the network.
Maybe if we were starting Sia in 10 years, when Ethereum or another tech was mature and stable and very secure, we could have built Sia on top of it. But for now, our community’s own crypto and our own blockchain is required. The Sia community is not trying to build something that may work in 10 years – we have already built a working decentralized storage network that is secured by Proof of Work.