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What Is Storj?

Storj, pronounced as “storage,” is an open-source cloud storage platform. Basically, it uses a decentralized network of nodes to host user data. The platform also secures hosted data using advanced encryption.

In a white paper published in December,2014, Storj was first introduced to the world as a concept. It was to be a decentralized [peer-to-peer] encrypted cloud storage platform.

Two years later, an updated white paper was published. Here, a decentralized network — connecting users who need cloud storage space with those who have hard drive space to sell — was described. The platform was launched in late 2018.

People with hard drive space and good internet connectivity can participate in the network. They become a unit in the network, called a node. Space providers are rewarded by Storj tokens.

Who Are the Founders of Storj?

Storj was founded by Shawn Wilkinson in May 2014. Wilkinson was a software developer based in Atlanta. He saw how blockchain technology could be leveraged to build a decentralized cloud storage network.

Together with his co-founder, John Quinn, the first white paper was published late 2014. Since then, the concept and details have changed. The current version of Storj, V3, was launched in the middle of 2019.

In addition to being a blockchain enthusiast, Quinn had extensive background in business development. Prior to founding his own projects (including Storj) he had been involved in the investment banking industry. The concept was finally incorporated as a company — Storj Labs Inc. in May 2015.

At the company’s inception, Wilkinson served as CEO. Later, he stepped down for a more experienced hand to take the wheel, with Ben Golub currently serving as CEO. Wilkinson is now the chief strategy officer (CSO), while Quinn serves as the chief revenue officer (CSO) as well as a member of the company’s board.

The platform was able to raise 910 bitcoin worth about $460,000 in 2014 in a public crowd-sale. They raised $3 million in a seed funding round three years later and then held a token sale, generating an additional $30 million that same year.

What Makes Storj Unique?

As a decentralized cloud storage network, Storj is unique in more ways than one. For one, unlike traditional cloud storage solutions that store data in huge data centers, Storj runs on a network of thousands of independent computers.

Anyone with a few extra terabytes of space can become a node on the platform by installing Tardigrade. All that is required is a strong and consistent internet connection.

The efficiency of the network means that hosts pay far less for the storage of their data than when employing traditional cloud storage services.

How Many Storj Coins Are There in Circulation?

Initially about 500 million [$Storj] tokens were minted on the [Ethereum] blockchain. After Storj Labs hosted a token sale, 75 million of these were burned. Now the total tokens available in circulation is just short of 425 million.

In 2017, before the token sale, the company locked up 245 million tokens in a reserve. The token sale itself had 70 million tokens released into circulation.

How Is the Storj Network Secured?

Storj Labs Inc., uses its Tardigrade software installed on node computers to create and secure user data. This network of anonymous nodes removes the need to trust cloud storage service providers to secure the privacy of our data.

The system is also peer-to-peer encrypted, which means that each file is encrypted before being dispersed to the network of independent hosts. Each node only receives a random fragment of a whole file with decryption keys split among each node and the host, making it almost impossible to hack.

Node operators get rewarded for hosting data as well confirming the safety and retention of the hosted files randomly in a process known in the crypto world as mining ([PoW]). The Storj token is used for this purpose. Individuals or organizations who want to store their data on the network provide the Storj tokens paid to nodes

This system ensures that user data are protected against hacks and other malicious attacks. It also removes the risk of storing data in a few isolated data storage units — which can be subject to a planned, coordinated attack, leading to mass loss of user data.