Storj, a project that provides decentralised file storage services and had its full network launch in the autumn of 2019. This project operates as an open-source, blockchain-based platform and has its native token, STORJ token. This cryptocurrency is used to incentivise storage sharing with more attractive rewards as demand increases. It aims to compete with traditional platforms such as Google Clouds and this article of Zatrun.com explains what project has been doing in this regard.
What is Storj and How Does It Work?
The Storj platform defines itself as a decentralised file storage solution that combines cloud-based storage and blockchain technology benefits. At its core is a network that allows users to rent out their unused storage space. Users who need to store files and assets online can access this network and rent existing storage resources from providers, or “farmers”, in this ecosystem. Payment is made using STORJ coin on the blockchain.
Understanding how the network operates begins with its obvious similarity to torrent technology. Torrents work as peer-to-peer networks where each stored file is split into multiple small pieces and then distributed to users. Users store copies of the same file. Any user who wants a copy sends a request to the network to access the file. Finally, the torrent client software gathers file pieces from different providers and reconstructs the original file.
Is It a Good Investment?
STORJ token is the sole cryptocurrency that facilitates payment transactions on the platform. Fees paid by users who need storage space are converted into funds that are used by farmers to provide storage and bandwidth resources to the main platform. Thus, payment for storage services must be made using token. However, if you are providing storage space to the network, you receive payment in this cryptocurrency.
Storj’s model needed to be designed to meet various challenges in order to ultimately challenge dominant cloud storage providers such as Google and Amazon. The team made special efforts in the design and developed a network that provides high security at lower costs.
This network uses blockchain and works in a decentralised manner. Users can purchase storage solutions cheaply while also benefiting from better scalability and privacy. Currently, the project is the 165th largest digital asset and STORJ cryptocurrency could grow in the future.