What is Storj (STORJ)?

What is Storj (STORJ)

One of several competing encryption cloud storage platforms, Storj allows any computer running its software to lease unused hard drive space to users who want to store files.

That way, you can think of Storj as an alternative to cloud storage platforms like those offered by Amazon or Google.

However, instead of a company that owns and maintains the software, Storj relies on software and a computer network to manage its data storage.

The key to network design is  criptomoeda STORJ, which allows users to pay other users on the network to store their files.

Likewise, users looking to sell excess bandwidth and storage capacity can earn additional money from these features by accepting STORJ.

Notably, Storj audits your network through a random file check every hour, which ensures your files are consistently hosted by storage nodes.

During this process, Storj sends requests to the node operators, who must send cryptographic proof that the data is still in their possession. Upon receipt of this proof, nodes receive payment for the storage and maintenance of the file.

The audit process is designed to maximize the quality of storage on the network and, so far, it seems to have conquered a niche.

Storj claims to have a network capacity of more than 100 petabytes, and by 2020 there were more than 6.000 active nodes storing data.

Who Created Storj?

What is Storj (STORJ)

Storj Labs, the company behind the Storj platform, was co-founded by Shawn Wilkinson and John Quinn in 2014. The latest version of Storj, V3, was released in the fall of 2019.

Storj Labs has gone through three separate funding rounds since its inception. Also, although Storj was first released on the Bitcoin blockchain, it migrated to Ethereum in 2017.

In 2014, Storj Labs raised 910 BTC (worth around $460.000 at the time) in a crowdsale audience.

In early 2017, the company raised $3 million in start-up financing, and in late 2017, Storj went through a symbolic sale, raising about $30 million.

Why Does STORJ Have Value?

The STORJ cryptocurrency gets its value from the utility of its network, as it is the preferred form of payment in the software.

This means that customers can buy and spend STORJ to store files, and storage nodes can receive and sell STORJ to be compensated for their extra space and bandwidth.

It is important to emphasize that Storj is not the only project of criptomoeda that it seeks to compete with the storage market, which means it may face competition that puts pressure on the price of its cryptocurrency.

Other decentralized cloud storage platforms include Filecoin, Siacoin and MaidSafe, each with varying technical capabilities.

Like many other cryptocurrencies, the supply of STORJ tokens is limited, which means that according to the software's rules, there will only be 500 million STORJ.

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How Does Storj Work?

Three main components contribute to power the Storj network.

These include:

  • storage nodes — Allow users to rent excess space on their hard drive and reliably store and return the data for a fee.
  • uplinks — run on the client machine and send files over the network. Uplinks also coordinate with peers to store and retrieve data.
  • Satellites — coordinate traffic between storage nodes and uplinks. Satellites are responsible for storing metadata, keeping storage nodes honest and distributing payments. Each user has an account on a satellite.

Segments and Stripes 

Once a user's uplink receives permission from their satellite to store data on the network, Storj files go through a process called segmentation.

During this process, the files are compressed, encrypted and, later, fragmented, which means that they are divided into several segments and bands. (A band is a division of a segment.)

Tracks from the original files are then distributed and stored on the network. To decrypt and recover their files, users must provide the same private key used to compress and encrypt their files in the first place.

Note that if a segment is small enough, it will likely be stored on a satellite rather than a storage node.

In order to account for nodes that go offline and potentially lose a fraction, Storj introduces the concept of redundancy.

This is a means by which all tracks are replicated a certain number of times and sent to different storage nodes on the network, a feature that prevents tampering and censorship by any small number of nodes.

Why use STORJ?

Storj supporters may be lured by the ability to buy, sell and control their data, resuming a service now provided only by corporate giants like Amazon, Microsoft or Google.

Privacy-conscious network users can also store their files without worrying that their information is being scrutinized and without being directed to advertisements based on those files.

This use case continues to draw potential users to Storj and its cryptocurrency, as well as cloud-based storage systems. blockchain competitors.

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