Siacoin
Crypto Overview
Understanding Intended Utility
Siacoin (SC) is the native cryptocurrency of the Sia network, a decentralized cloud storage platform launched in 2015. The project's primary purpose is to create a marketplace for cloud storage where users can rent out their excess hard drive space or purchase storage from others. Renters pay hosts in Siacoin for storage space, creating a legitimate utility-driven ecosystem.
Business Model Assessment
The business model is fundamentally halal as it involves the exchange of real value (storage space) for compensation (Siacoin). The platform facilitates legitimate trade of digital storage services without involving any prohibited activities. Smart contracts ensure transparency and fair dealings between parties.
Actual Utility Analysis
Current on-chain metrics show consistent network usage with approximately 2.1 PB (petabytes) of storage being actively used on the network as of 2023. The platform has over 300 active hosts globally providing storage services. Development activity remains steady, with regular updates to the core protocol and associated tools.
Token Distribution and Founder Assessment
Siacoin has no pre-mine or ICO, with all coins being generated through mining. The founding team at Skynet Labs (formerly Nebulous) receives funding through a separate foundation structure rather than controlling large portions of the token supply. This aligns well with ethical distribution principles.
Technical Compliance
The network uses Proof-of-Work mining for consensus, which is halal as it involves actual work and resource expenditure. Storage contracts are straightforward rental agreements without interest-bearing components. The platform focuses solely on storage services and does not facilitate any prohibited industries.
Crypto Impact
To assign a comfort level investing in Siacoin from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Siacoin.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.