About Storj (STORJ)

Storj is a decentralized cloud storage platform. Built as a cost-effective alternative to centralized cloud storage providers (AWS, Google Cloud) Storj leverages a globally disperse network of over 13,000 computer operators to store encrypted files.

Theoretically, anyone with enough spare bandwidth and hard-drive space can share their resources with the network and earn passive income by storing files, protocol documentation explained. Resources providers are collectively known as storage nodes. Current storage node specifications require at least 550 gigabytes of free storage space, and no less than 2 terrabytes of available bandwidth.

According to project documentation, nodes are constantly audited to ensure they’re storing the files delegated to them by the network. 

Storj has a native token, STORJ, used as a means of payment on the network. Clients pay a STORJ-denominated fee to nodes to store files.

All files on the network are first encrypted before being split up into 80 individual pieces (shards), each of which is then sent to a different storage node across the globe. Just 29 of these pieces are needed to retrieve the original file, ensuring it can be obtained even if portions of the network are offline.

Only the owner of the file retains its encryption key, ensuring no one can meddle with the file or see its contents while it’s in storage.

As of June 2022, Storj claims to offer cost savings of nearly 80% relative to other cloud storage providers.

When was STORJ created and how much was it worth?

Storj was created by American developer Shawn Wilkinson all the way back in 2014. Wilkinson maintains an active role in the project, currently serving as its chief strategy officer.

Shortly after its 2014 launch, the protocol managed to raise 910 BTC, valued at $460,000, via an August crowd sale. This was followed by a $3 million seed funding round in February of 2017.

According to Messari, 72 million STORJ tokens were initially distributed via 2 public sales (a pre-sale and main sale) in May of 2017 at a price of $0.50.

STORJ’s performance over the last five years mirrors the broader digital asset market. Following a brief consolidation after launch, the token skyrocketed to a local high of around $2.80 before falling prey to crypto winter of 2018-2020.

In early 2021 the token peaked once again, this time to a record high of $3.81, but was ultimately subjected to downside volatility.

Like most digital assets, STORJ found momentum once again during the latter half of 2021, only to lose its footing for the third time amidst inflationary headwinds and general macro uncertainty. As of mid-June 2022, STORJ was priced at $0.39, per CoinGecko.

The platform’s latest improvement, STORJ V3, was released in 2018, Messari explained.

How is the price of STORJ determined?

STORJ is a deflationary asset with a hard cap of 425 million tokens. Originally set for a total supply of 500 million 75 million token have since been burned by STORJ Labs.

According to Messari, roughly 17% of supply (73 million STORJ) was distributed to the public via 2 public sales in 2017. An additional 25.4% of supply was earmarked for STORJ Labs, while some245 million tokens (57.6% of supply) are reside in the protocol’s reserves. 

Why does STORJ have value?

Users will find value in Storj’s decentralized approach to cloud storage, demand for which is rising, and the cost savings that comes along with it. Given STORJ’s role within the platform’s ecosystem, demand for the token would likely grow were it the case that network usage increases.

Is STORJ secure?

Storj leverages end-to-end encryption and the benefits of decentralization to ensure files are stored in a secure manner.

What are the main benefits of STORJ?

• Storj is a decentralized and cost-effective alternative to existing cloud storage providers.
•  Storj allows users to leverage their spare disk-space and bandwidth to store files on the network. Resource providers are compensated with STORJ tokens for their service.
• Storj leverages a global network of over 13,000 storage nodes. In other words, there’s no central point of failure.
• Storj advertises 80% cost saving relative to traditional cloud providers.

What do critics say about Storj?

They say it lacks necessary economic incentives. While storage nodes are compensated with tokenized rewards for their services, these earnings – oftentimes only a few dollars per month – arguably aren’t enough to justify the required storage/bandwidth, Academy AAX explained.