What is Storj? And how does STORJ work? (2023 edition)

What Is Storj (STORJ)?

Storj provides an open-source decentralized environment where users can store their data with access to full privacy and top security. Storj cloud storage operates without a central authority, and stores data by splitting it into smaller fractions and distributing it across the Storj global cloud network.

Storj presents an alternative to centralized cloud storage providers such as Google Cloud and Amazon cloud services and allows users to rent and use redundant disk space in a decentralized fashion through peer-to-peer servicing. Storj is one of the first decentralized cloud storage platforms and among only a few of its kind in the cryptocurrency market. STORJ is the native token and fuel of the platform and acts as the payment method on the network. Users can host nodes and earn based on the shared disk space paid for by the renters on the platform, thus creating a decentralized P2P cloud storage marketplace.

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How Does Storj Work?

Storj is among the first decentralized cloud markets and cloud storage networks, and as such Storj aims to remove the need for a centralized authority. The platform is based on blockchain technology, which is how the system enables security, decentralization, privacy, and transparency.

Storj breaks the uploaded data into smaller fractions and distributes it across the network, so that no single company or organization could have access to all uploaded data. That way, Storj returns ownership over data to users as network participants are in charge of their own data, supported by automated protocols running the network. The process of splitting the data is known as sharding, enabling users to download data in fragments from various sources at the same time. This means that Storj downloads work faster when compared with traditional cloud storage services like Amazon or Google Cloud.

The cloud storage is based on a P2P cloud service market where users can rent their excess disk space to other people using the network. Users who choose to rent their redundant disk space can earn STORJ tokens based on the rented space. The network works based on three main components: Uplinks, Storage Nodes, and Satellites. 

Thanks to its architecture, Storj cloud storage is more cost-effective, private, and secure, while returning data ownership to users and lowering the costs of cloud services.

Who Are the Founders of Storj? (History of Storj)

Storj was first mentioned as decentralized cloud storage based on blockchain in the original whitepaper published in 2014. The second version of the whitepaper was published in 2016. The company behind the cloud protocol is called Storj Labs and was co-founded by John Quinn and Shawn Wilkinson.

Storj Labs has had three different funding rounds since its inception, and the protocol was finally launched in 2018. The second version of the protocol, known as V3, was released a year later in 2019. Before launching in 2018, Storj was initially hosted on top of the Bitcoin blockchain. It then migrated to Ethereum in 2017. During the first funding round, Storj raised 910 BTC, later raising close to $30 million in the token sale.

What Makes Storj Unique?

Storj is one of the few decentralized cloud storage platforms, which makes for a close to unique utility in the cryptocurrency market. The platform enables users to rent redundant disk space and pay for uploading data to the cloud in STORJ, the native token of the network. The uniqueness of the entire process lies in the concept of sharding. Sharding splits the data uploaded to the platform into smaller fractions that are distributed across the network. This feature is unique in comparison with the way traditional cloud providers operate. In the case of traditional cloud providers, companies and organizations running the service have full access to all uploaded data. This is not the case with Storj protocol due to the decentralized architecture and sharding.

Moreover, Storj places the ownership of data in the hands of users and provides a P2P cloud marketplace where users can earn STORJ for renting excess disk space.

What Gives Storj Value?

The value of Storj is expressed through its market price, while the intrinsic value of STORJ is observed through the prism of its utility, technology, and technical capacity. There are numerous factors that can cause the price of STORJ to drop or rise, one of them being the limited total supply and conditions in the wider economy.

Storj can quickly and radically change its market price due to the high volatility in the market of cryptocurrencies. The crypto market has higher volatility when compared with assets in the more traditional financial markets, which is why STORJ and other cryptos can radically rise or dip within a short period. The value of Storj is also affected by a multitude of factors such as important news and events. For example, when Storj launched the second version V3, the positive momentum caused the price to rise. Elements like mergers, integrations, new updates and upgrades, developments, and partnerships, can all define the value of Storj. The fundamental value of Storj, however, is defined by its protocol, technology, utility, and technical capacity.

How Many Storj (STORJ) Coins Are in Circulation?

Storj (STORJ) has a limited supply of 425 million STORJ tokens, which is its total supply and acts as an anti-inflation mechanism. The circulating supply represents all the tokens that are in circulation, which is in the case of STORJ. Once the total supply is exhausted, no new STORJ tokens should be minted. However, the dev team can increase the limit if the protocol is adjusted to enable minting more STORJ coins.

The market cap reflects the number of circulating coins multiplied by the current market price.

Other Technical Data

The Storj cloud network is powered by three main components, as mentioned before: Storage Nodes, Uplink, and Satellites.

Storage Nodes enable renting excess storage space to other users, who can pay for the storage with STORJ tokens, and represents a layer of the P2P cloud storage marketplace. Uplinks serve the purpose of uploading the files to the network, supported by the clients’ machines. Satellites are coordination elements that enable communication between Uplinks and Nodes, while all users have an account on a satellite.

How Is the Storj Network Secured?

Storj is all about keeping users’ data private and secured in a decentralized fashion to enable the honest distribution of STORJ-based payments and ensure that the ownership of the uploaded data belongs to the user instead of a central authority.

The metadata contained within the Satellites is first verified for integrity before being split up through the process of sharding. The shards represent fragments of uploaded data that are distributed across the network. Users with keys can access the entire data, while data is kept safe from malicious activities through fragmentation, i.e. the process of sharding.

How To Use Storj (STORJ)

Network users can rent redundant disk space to other network participants. Renters get paid for renting their excess storage space and the native token STORJ provides a means of payment on the network. That way, renters can earn based on their shared disk space. STORJ tokens are thus used to pay for the services hosted on the network. STORJ can also be held in wallets and traded on the market.

How To Choose a Storj Wallet

As an ERC-20 token, STORJ can be stored in any wallet that supports Ethereum and the type you choose will likely depend on what you want to use it for and how much you need to store.

Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical know-how and are a more expensive option. As such, they may be better suited to storing larger amounts of STORJ for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of STORJ or more novice users.

Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your STORJ, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.

Kriptomat offers a secure storage solution, allowing you to both store and trade your STORJ tokens without hassle. Storing your STORJ with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling STORJ, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

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Storj: Mining or Proof of Stake?

STORJ tokens are not mineable. As Storj is hosted on the Ethereum network, the project runs on the same protocol as the Ethereum network, which is currently transitioning to the more efficient Proof of Stake consensus mechanism. The new protocol standard should enable faster transactions and more efficient scaling.

Conclusion

Storj is a pioneering project in the sector of decentralized cloud storage, and as such is a valuable addition to the increasing variety of digital assets based on blockchain technology. Storj returns data ownership to the user through decentralization and successfully integrates privacy and security into the system while removing the need for a central authority.

The Storj model enables users to have full control over their data with transparency, security, and privacy whereas traditional cloud providers control users’ data and may compromise privacy. Storj could make a valuable asset due to its utility and technical capacity.

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Storj FAQ

Is Storj Cheaper Than Centralized Cloud Storage Providers?

According to their website, Storj’s decentralized P2P storage network saves users 80% on cloud storage costs when compared with the big cloud storage providers.

How To Buy Storj

If you are wondering how to buy Storj, you’ll be thrilled to know that you can easily buy STORJ tokens by registering for a free Kriptomat account and choosing from a range of available payment methods.

How To Sell Storj

If you already own STORJ and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

Storj Price

Storj price is in constant flux, which means that the value of STORJ is subject to frequent changes, while the price depends on various defining factors. As well as traditional factors such as project developments, market sentiment, and the economy in general, the price of STORJ is also affected by the level of adoption of the Storj network. You can check the live price of Storj on Kriptomat and follow up with changes and trend reversals.

The current STORJ price is EUR.

The 24-hour trading volume of STORJ is EUR. STORJ is currently ranked of all cryptocurrencies by total market cap, with a market cap of EUR. It has a circulating supply of STORJ.

Register now to begin your journey into the world of Storj and cryptocurrencies with Kriptomat!

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