Storj (STORJ) is the native cryptocurrency of Storj, a decentralized cloud storage (DCS) platform that uses blockchain technology to provide decentralized and encrypted cloud storage.
Operating on the Ethereum blockchain, Storj is an alternative to centralized cloud storage platforms such as Amazon Web Services or Google Cloud. Storj allows individuals to make their hard drive space available for rent, and users of the platform can use other peoples’ hard drive space to store files.
The Storj Network uses the STORJ token, released in 2017, to power its network. Prior to the release of the token, a legacy token, SJCX existed with a supply of 500 million. In 2017, the legacy SJCX token was discontinued and the project migrated from the Bitcoin-based Counterparty platform to the Ethereum blockchain. Until January 2020, legacy SJCX token holders were able to convert their tokens into the new STORJ token.
STORJ is an ERC-20 token, a type of token used for smart contracts on the Ethereum blockchain. Storj’s tokens are used to incentivize those with spare computer storage to store and protect their enterprise users’ files. A total supply of 500 million STORJ tokens were introduced, but the team subsequently burned, or removed, 75 million tokens, bringing the new supply of tokens outstanding to just shy of 425 million.
In March 2021, STORJ hit its all-time high of $3.91 but dropped over the subsequent months. In June 2021, STORJ had fallen to $0.61 but quickly rebounded, fluctuating between $1 and $2.
The token is supported on several centralized and decentralized exchanges, including Binance, Coinbase, FTX, Huobi and Uniswap.
How does Storj work?
The Storj platform runs on the Ethereum blockchain, which operates using a proof-of-work consensus mechanism, the same kind of system Bitcoin uses to verify and secure transactions. Ethereum, however, is making the transition to a proof-of-stake mechanism.
The Storj DCS project is a decentralized cloud storage network that allows anyone to store files without having to navigate a centralized data center. When a customer uploads a file to Storj DCS, the file is encrypted, split into smaller pieces and then distributed to multiple nodes within the global Storj network. The file is then recompiled back together and retrieved upon request.
Users purchase cloud storage services using the STORJ token, and network participants earn STORJ as rewards for providing unused hard drive space for storage. Other decentralized file storage projects include Filecoin and Sia.
There are three main components powering the Storj network:
Storage Nodes: Allows users to rent out excess space on their hard drive and reliably store and return data for a fee.
Uplinks: Run on the client’s machine and upload files to the network. Uplinks also coordinate with peers to store and retrieve data.
Satellites: Coordinate traffic between the storage nodes and uplinks. Satellites are responsible for storing metadata, keeping storage nodes honest and distributing payments.
Key events and management
Storj Labs, the company behind the Storj platform, was co-founded by entrepreneurs Shawn Wilkinson and John Quinn in 2014.
The first Storj white paper was published in 2014. The third and latest version of Storj was launched in fall 2019.
Storj first launched on top of the Bitcoin blockchain, but migrated to Ethereum in 2017.
The project is backed by venture capital firms, including Google Ventures, Qualcomm Ventures and Techstars Ventures.