Storj is a cloud storage company that recently launched its own cryptocurrency-like token system. Today, you can buy Storj tokens in exchange for cheap cloud storage in the future.
Storj is calling its tokens, appropriately enough, STORJ. They’re digital tokens based on the Ethereum platform. You can exchange the tokens for cloud-based storage space within the Storj ecosystem. The company’s goal is to provide a cloud storage solution that’s faster and 50% less expensive than traditional datacenter-based cloud storage companies.
The token was formerly known as SJCX. The company recently migrated its tokens to the Ethereum ERC20 standard (it was previously on the Counterparty protocol on the Bitcoin blockchain). Storj did this to reduce transaction fees for the Storj community while also increasing the functionality and usability of STORJ.
Typically, cloud storage providers don’t launch token systems. So why did Storj do it? Storj chose the token sale model because of its ability to support distributed applications and open source development teams. Thanks to the Storj token sale, the company can accelerate product development while promoting developer adoption and network growth.
In layman’s terms, Storj went with the token system as a type of crowdfunding. Just like companies launch on Kickstarter or Indiegogo for funding, Storj wants to do the same with their cloud storage. However, Storj’s tokens will be used as more than just a source of funding: they play a crucial role in how users interact with Storj.
You see, Storj is a cloud storage provider that doesn’t have a single datacenter. Instead, it lets users sell their unused storage space and bandwidth in exchange for STORJ, or rent storage space and bandwidth from other users in exchange for STORJ.
How Does the Storj Pre-Sale Work?
Storj launched its presale in May 2017. The full sale launches on May 19. This current Storj token sale has a $30 million sales target and the goal of selling 15 to 25% of outstanding tokens.
Each token costs $0.50. Presale discounts were available for large investors. If you buy between $50 and $100k during the presale, for example, you get a 10% discount. That discount rises to 20% for purchases over $100k.
STORJ Token Features
Obviously, STORJ is a unique token-based cryptocurrency system. Here are some of the key features of STORJ:
- Channel Partnerships: Storj has partnered with Microsoft Azure and Heroku to offer Storj integrations with PaaS providers already used by their customers.
- Enterprise Ready: In 2017, Storj signed its first service agreement with a Fortune 500 company. They also doubled their developer team.
- Free Software: Storj posts its software on Github and it’s all open source.
- Rapidly Growing: There are 20,000 users and almost 19,000 farmers on the Storj network, and the company has enjoyed steady growth each month in the last year.
Advantages of Tokens
Why did Storj choose to use tokens instead of raising money in a conventional way using Bitcoin or fiat currencies? Here are some of the reasons why the company went with their STORJ token system:
- Granularity: Bitcoin isn’t divisible or flexible enough to support the granularity needed for micropayments, according to the official Storj website.
- Stability: By separating Storj from other cryptocurrencies, the company builds a layer of protection from the volatility of larger markets.
- Scalability: STORJ tokens help the company identify and fix problems at scale, which means a larger, more stable network in the long run.
- Incentivization: Community members enjoy tier-one tech support and development with STORJ, which means they’re rewarded for their hard work.
- Micropayments: Low transaction fees mean cheaper service for everyone.
- Future Growth: Storj may use its tokens for more purposes in the future. The company explains that they “plan to use the token in ways raw Bitcoin or Ether can’t”.
- Healthy Ecosystem: One of the key features of STORJ is that users can earn STORJ for sharing disk space, or spend STORJ to rent disk space from others. This creates a positive feedback loop and a self-sustaining economy.
How Does Storj Work?
How does the Storj storage actually work? The company is a cloud service provider that doesn’t operate a single datacenter.
Storj is a peer-to-peer network consisting of farmers and renters. Farmers are users who rent out their spare hard drive space and bandwidth, while renters are those who purchase space and bandwidth.
The company claims this system is up to 10X faster and 50% less expensive than traditional datacenter-based cloud storage solutions.
Of course, Storj is more than just a datacenter system: the company describes Storj as “a platform, a token, and a suite of tools for developers looking to build better tools and applications”.
We’re not going to dive too deep into the technology behind Storj here. However, you can read about the technology in the company’s whitepaper here.
Storj was founded by Shawn Wilkinson (CTO and CEO), Tome Boshevski (Chief Design Officer), James Prestwich (COO and CFO), and John Quinn (Chief Development Officer)
The company was founded in December 2013 with the goal of developing the largest, most secure open-source decentralized cloud storage platform.
Storj, by the way, is pronounced like “storage”.
You can take part in the Storj token sale today by visiting the company’s token sale page here: https://storj.io/tokensale.html