While peer-to-peer systems offer users a high level of encryption and privacy, these networks have been found to not be feasible for use within production storage systems. As a result, Storj proposes a functional model that addresses performance concerns while implementing a set of federated nodes which promote transparency and overall system usability.
At its core, Storj is a cloud storage service which makes use of native tokens to facilitate all internal transactions. These tokens are appropriately called STORJ, and can be used to purchase cloud-based storage space within the platform ecosystem.
According to the official whitepaper, the goal of this platform is to foster an environment that promotes faster cloud storage capabilities as well as lowers the utility prices for such digital services. This is mainly achieved through the use of a decentralized cloud server instead of a localized data center such as those used by many large companies today.
It should also be mentioned that this project started out with a different name, and that its currency was initially called SJCX. These coins, when first introduced, made use of the Counterparty protocol, but were then migrated onto the Ethereum blockchain so as to reduce processing fees as well as increase overall transaction efficiency.
- Since the platform is open source-based, it supports the development of various dApps.
- Instead of simply facilitating internal transactions, Storj tokens are actually used for buying and selling cloud storage space.
- Storj serves as a cloud storage provider whose services are not dependent on a single, localized server.
- Users have the ability to sell their cloud space as well as their bandwidth in exchange for native tokens.
- The platform is highly accessible and can be used by experienced and novice users alike.
First and foremost, Storj comes with a market-ready ecosystem that has already been validated by some of the top digital players in the world today. For example, the company has partnered with Microsoft Azure and Heroku to integrate STORJ tokens with various third-party platforms, primarily through the use of a PaaS protocol.
Visual representation of the “sharding mechanism” employed by Storj
Also, Storj has made its source code available on GitHub, so third-party developers have the option to create their own dApps which can then be implemented within the company’s ecosystem.
Since established cryptos like Bitcoin and Ethereum are not granular, they cannot be used to execute microtransactions for everyday purposes. However, owing to the framework of Storj coins, they can be implemented for daily payments while providing users with an added layer of security and safety. Not only that, the fees charged per transaction are extremely small, especially when compared to conventional credit and debit card transactions.
The pricing structure of services offered
Lastly, the scalable nature of this platform makes it extremely attractive for future technological use. Since the ecosystem can accommodate a large number of users, it is easily one of the better propositions within the crypto market today in terms of long-term stability and functionality.
How Storj works
While it is clear by now that Storj is a cloud storage platform, it is still not clear how this system actually works.
Storj makes use of a P2P framework that is made up of farmers and renters. Farmers are those entities that allow other users to rent or lease their spare hard drive space and bandwidth, while renters, as the name suggests, are those individuals who are looking to purchase cloud space and machine bandwidth.
Overview of the audit protocol used by Storj (courtesy of the whitepaper)
Owing to the deployment of a completely decentralized service module, Storj claims to provide users with system speeds that are nearly ten times faster than regular cloud computing companies. Not only that, Storj is also quite affordable and economical when compared to some of its established market counterparts such as Apple and DropBox.
Lastly, apart from its utility as a data center, this platform can be seen as a foundational base where developers from all over the world can come together and develop unique app suites.
Established in 2013, Storj was initially conceived with the aim of developing a cloud storage platform that was not only scalable but also completely decentralized.
The current CEO and executive chairman of this venture is Ben Golub. Apart from his work at Storj, he has headed business operations for various high-profile companies such as Docker, Gluster (Red Hat), and Plaxo (Comcast).
Shawn Wilkinson is the CSO and founder of this project. He has been in the blockchain domain from the very start and has extensive experience with tech development and cryptography.
Lastly, John Quinn is the co-founder and financial head of this company. John previously served as a founding partner at a company called Digital Ventures. In addition, he was Director of Global Markets at Deutsche Bank from 2010 to 2012. According to his LinkedIn profile, Quinn is also currently the managing director at a private equity firm.
Since its introduction on the market, this currency has been faring relatively well within the cryptoverse.
STORJ token lifetime performance data (courtesy of CoinMarketCap)
STORJ was initially priced at US$0.52 on July 2, 2017, but quickly scaled up to an impressive US$2.20 within a month of its release. The currency hit its peak on January 10, 2018 when the price of a single token reached an impressive US$2.66.
Since then, token prices have stabilized to a large extent, and the value of a single STORJ is hovering around US$0.71 as of March 19, 2018.
Up until now, cloud storage companies have dictated the terms of service to their users, and as a result, there has been little to no competition within this digital sector. However, with the introduction of Storj, all of that may change.
Since this technology offers users a scalable solution that is not only efficient but also highly transparent, it seems that Storj is destined for big things this year.
If you would like to start investing in STORJ, trading pairs are being offered on various online exchanges including Huobi, Binance, UpBit, and Bittrex.