For users, Storj offers a private and secure storage solution. It also provides a way for people to get paid for their extra storage space in the network's STORJ utility token. In our Storj guide, we'll go into more detail on how it works and its potential as an investment.
What makes Storj unique?
Storj takes the decentralization model that's used by cryptocurrencies and applies it to the data storage industry.
Its system is called the Storj DCS, short for “decentralized cloud storage.” It consists of nodes that are providing their unused hard drive space. Storj pays nodes for their resources with its STORJ tokens. Anyone with hardware that meets the Storj requirements can operate a node.
Storj also has unique advantages as a cloud storage network over the traditional options. When you use Storj, it automatically encrypts your files before uploading them. The data is then split into 80 pieces and distributed to 80 separate nodes, all with different operators across a global network. Storj only needs 29 of 80 pieces to retrieve your encrypted data, which protects you in the event of any nodes going offline.
To sum it up, Storj allows you to store your data across a distributed network. Since data is encrypted and split into small pieces, there's no way for anyone else to access it. This also protects against data breaches.
Where Storj came from
Shawn Wilkinson and John Quinn founded Storj and Storj Labs, the organization that manages the project, in 2014. The Storj team released multiple white papers that year and also held a public crowdsale that raised 910 Bitcoin (BTC +2.27%), which was worth approximately $461,802 at the time. Crowdsale participants received early access to Storj's apps.
The first version of the Storj cryptocurrency was called Storjcoin X (SJCX). It was discontinued in 2017, and Storj Labs held an initial coin offering (ICO) for its new STORJ tokens in May of that year, raising $30 million. SJCX holders were eligible to convert those tokens into STORJ at a 1:1 ratio through December 2017. After a series of developer and alpha releases, a production version of Storj was publicly released in December 2019.
Crypto Tokens
How to buy Storj
If you want to buy Storj, you can find it on several of the most popular crypto exchanges. Here are a few highly rated exchanges that list Storj:
- Gemini
- Kraken
- Coinbase Global (COIN +13.02%)
- Binance.US
Now that you know more about Storj, you can decide if you want to invest in it. One final thing to mention is that, like other cryptocurrencies, Storj has been volatile. If you invest, commit to holding for at least five years, and don't let short-term price changes convince you to make any rash decisions.
About the Author
