Put Your Idle Hard Drive Space To Work

After Satoshi Nakamoto’s release of the decentralized peer-to-peer payment system Bitcoin, an emerging market of new alternative currencies were created attempting to piggyback on the success of Bitcoin. In the early days, Bitcoin remained top dog within an immature altcoin markets. To date, Bitcoin, still number one, only dominates a little over half of the cryptocurrency market. The reason for this change comes from the increasing development of new alternative coins with unique visions on how to use the decentralized network. A new branch of coins emerged within the rise of the alternative coin market, that of the new algorithm “Proof of Resource”. Mentionable coins on the market that use the Proof of Resource algorithm are Storj, Siacoin, Maidsafe and Burstcoin (technically, Burstcoin uses a different algorithm named “Proof of Capacity”).

After Satoshi Nakamoto’s release of the decentralized peer-to-peer payment system Bitcoin, an emerging market of new alternative currencies were created attempting to piggyback on the success of Bitcoin. In the early days, Bitcoin remained top dog within an immature altcoin markets. To date, Bitcoin, still number one, only dominates a little over half of the cryptocurrency market. The reason for this change comes from the increasing development of new alternative coins with unique visions on how to use the decentralized network. A new branch of coins emerged within the rise of the alternative coin market, that of the new algorithm “Proof of Resource”. Mentionable coins on the market that use the Proof of Resource algorithm are Storj, Siacoin, Maidsafe and Burstcoin (technically, Burstcoin uses a different algorithm named “Proof of Capacity”).

“Proof of Resource” (PoR) is a new method in which determines where new coins are distributed throughout the decentralized network. New coins are distributed to “miners” whose job is to confirm transactions on the network. Miners play an important role in all decentralized networks because the more miners that are confirming transactions, the more secure the network becomes. Bitcoin’s “Proof of Work” (PoW) algorithm works as follows: users buy powerful computers that have the ability to 1) confirm transactions and 2) solve complex algorithms which decide which miners get the newly created Bitcoins. This creates a profit motive for miners to contribute to the network.

PoR mining is different to PoW mining. PoR mining allows users to “rent out” free hard drive space in exchange for new coins. As opposed to PoW mining, which requires the latest and most powerful computers on the market, PoR mining requires free hard drive space, to which we all have. PoR mining is a far more eco friendly way of mining in that it requires only a fraction of the power that PoW machines use. It gets better. The free hard drive space is actually used to store data, like documents, pictures, movies etc. In brief, the way it works is, all the data uploaded onto the network will be stored by those who are renting out their free hard drive space. Data is chopped up into pieces, encrypted and distributed throughout the network and stored all around the world. The network eliminates all single points of failures of centralized file storage services, such as cloud storage providers. Data is backed up on multiple systems to insure 100% uptime. Reliable miners receive higher rewards for it’s uptime reliability.

There are a range of Proof of Resource coins on the cryptocurrency market today investors can invest in, all of which are being marketed and developed in different ways. Here is a brief overview four cryptocurrency coins on the market today, Storj, Siacoin, Maidsafe and Burst.

One cryptocurrency which uses this method is Storj, aiming to decentralise cloud storage. The aim is to compete against centralised services, such as Amazon S3, Google Cloud and Microsoft Azure, who charge high prices for their storage services. Storj charge a fraction of the price to store data compared to other centralised services. On top of that, all the data is 100% private, 100% safe and decentralized with a zero point of failure. As the network of transactions increase, the larger the profit miners receive for renting out their hard drive space. Storj has made it simple to rent out hard drive space with it’s easy to use software name Storj Share. Find out more information at https://storj.io/.

Another notable decentralised cloud sharing service is Siacoin. Siacoin’s roadmap is extensive, with exciting plans such as video streaming. Although second to the market to Storj, Siacoin has proven to be extremely competitive and competent. Find out more information at https://sia.tech/.  

If decentralized cloud storage didn’t blow your mind, what MaidSafe is attempting to do will. MaidSafe, is a cryptocurrency which aims to decentralise the internet itself. Due to recent events with governments and companies (such as Facebook, Twitter and YouTube) censoring information, MaidSafe offers a way out for the lovers of freedom all around the world. As the information is decentralised and stored on multiple devices, censorship will be a thing of the past. What is particularly interesting on the MaidSafe network is how it allocates data. The more popular that data is, the more that data is backed up on multiple computers around the world. This may be the end of DDoS attacks against centralized websites. With a large market cap, MaidSafe is certainly a safe bet for investors.  Find out more information at https://maidsafe.net/.

Lastly, Burstcoin, under the algorithm “Proof of Capacity” (PoC) miners pre-generate “plots” on the miners hard drive. The larger amount of “plots” one adds, the faster your mining speed is. The amount of “plots” are then scanned to determine the amount of time it will take to process the next block. Thus, the miners sit idle while it waits to process the next block, hence, reducing the risk of hard drives overheating. Burstcoin, although has plans to store data, is focused on advanced transactions, like escrows and smart contracts. Find out more information at http://burstcoin.info/