What Is Storj (STORJ)?

Storj (STORJ) is an example of how blockchain technology can practically benefit users by letting them store all types of data in a decentralized manner with the help of cryptocurrency. The STORJ token allows users to take control of their data and store it securely on the blockchain.

Let’s find out how STORJ helps users worldwide safely store data independently of big tech storage platforms. 

How Storj (STORJ) Works

STORJ is the crypto token of the Storj platform for decentralized data storage. The token and the platform’s name are pronounced like storage. Storj is a blockchain-based cloud storage network that aims to solve some of the potential issues of using centralized storage services.

Big tech storage solutions such as Google Drive use a closed, centralized structure and provide users with storage space on their centrally-controlled servers. These storage services are prone to hacks because if a cyber attacker manages to breach the system’s security, all of the data will be in danger.

Also, centralized cloud services often charge considerable fees for additional storage space beyond the initial free storage package.

Storj has a different approach to cloud storage. Instead of using centralized servers, the platform leverages blockchain technology to operate a cloud storage system with its Ethereum-based STORJ crypto token. STORJ is responsible for all transactions on the Storj cloud storage system and is the medium for creating decentralized data storage points.

The system has thousands of network nodes. These nodes are actually users who want to participate in the work of Storj by giving their hard drive space in exchange for STORJ token rewards. This means that when storage seekers wish to use Storj for storing data, they store their files on other users’ computers. 

The stored data is encrypted, and network nodes don’t have access to it. In fact, the data is distributed among multiple nodes to prevent cyber attackers from compromising the data in case they hack a node. The data is split into pieces across several nodes, but users can access their own complete data anytime through the Storj platform. 

Since Storj relies on the STORJ crypto token, users get to control their data through private keys, which are the only method to decrypt the stored data. 

What Is Storj (STORJ) Used For?

The STORJ token is used for transactions within the network by both storage users and storage providers. 

Storj node operators get regular payouts for the storage space they provide in STORJ tokens. Since STORJ is a reputable crypto with a high position on the crypto market, node operators can easily exchange their payments for other crypto or even cash out their STORJ into fiat currency. This way, STORJ can be a source of passive income for node operators.

Storage users can pay for storage with a bank card or STORJ tokens. However, using a payment card requires users to pay fiat to crypto conversion fees and additional payment service provider fees. That’s why it’s much better to pay for storage with STORJ tokens. Users can directly transfer STORJ from their crypto wallets and only pay a blockchain transaction fee.

When paying with STORJ, users deposit a certain amount of STORJ upfront to cover the costs of the storage space they need, but the platform only charges them for the storage they use. 

For example, if the amount of storage you need costs 100 STORJ per month, but you spend less than the paid amount, the network won’t charge you the full 100 STORJ. This way, users can have STORJ credit and gradually spend tokens to pay for storage over time. 

Where to Buy Storj (STORJ)?

Buying STORJ is very simple because there are over 30 exchanges and more than 80 trading pairs for STORJ tokens on the market.

The largest centralized trading platforms that support STORJ include Coinbase, Binance, and KuCoin, while Binance has the broadest selection of STORJ trading pairs. You can pay for STORJ on Binance with Binance USD (BUSD), Bitcoin (BTC), and Tether (USDT). 

Coinbase has an extensive verification procedure, while Binance and KuCoin don’t require users to pass an ID verification procedure, so it’s a bit faster to purchase STORJ there.

You can also purchase STORJ on the UniSwap decentralized exchange with Wrapped Ethereum (WETH) tokens. To get some WETH, you’ll need to wrap your ETH on UniSwap. Once you’re done, you can trade your WETH for STORJ.

How Long Has Storj (STORJ) Been Around?

In 2014, Shawn Wilkinson, a crypto enthusiast and software engineer, launched the Storj project to offer users a cloud-based storage alternative that’s more affordable than big tech services. 

However, the Storj platform and the STORJ token were launched four years later, in 2018. Storj has gone through several additional development stages since then. The current third version of the platform was launched in 2019.

What’s Controversial About Storj (STORJ)?

Since the platform’s launch in 2018, Storj has been under constant development to improve user experience, storage features, and platform safety. As far as controversies are concerned, there haven’t been any unfortunate events in Storj’s history. 

For now, the Storj developer team is very active in delivering platform improvements. 

The only significant issue crypto enthusiasts might have with Storj is the fact that the platform requires users to provide their full names and other personal details when creating an account on the platform. This means that users can’t remain anonymous while using Storj, which might be a deal breaker for some.

How Many Storj Coins Are There?

According to the Storj page on CoinMarketCap, there are 412,937,122 STORJ tokens in circulation, while the maximum supply is 424,999,998 tokens.

Can STORJ Be Mined?

You can’t mine STORJ. The only way to earn STORJ is by joining the platform as a node operator and receiving token payments for providing storage space.

Market Cap and Price History of Storj (STORJ)

STORJ is trading at 0.33 USD per token, with a market capitalization of 134 million USD. The current STORJ price is much lower than the token’s all-time high of 3.24 USD, reached during the 2021 crypto bull market cycle.

Biggest Competitors of Storj (STORJ)

Storj’s biggest competitor is Filecoin (FIL), which provides the exact same features as Storj. However, Filecoin has a much higher market capitalization and coin value than Storj. In fact, Filecoin is a large-cap crypto with a market share of over two billion USD. 

Storj’s main strengths that might give it a competitive edge over Filecoin in the future are its strong data encryption, practical user interface, and fast data retrieval protocol. 

What Does the Storj (STORJ) Project Road Map Look Like?

Storj is a constantly evolving decentralized storage project, with an active developer team constantly launching platform improvements. Since Storj has been active for years now, with all key features operating, there’s no development roadmap for the project. 

However, judging by the high activity of the Storj developer team, it’s highly probable that the project will continue to evolve and roll out further improvements in the future.

Pros and Cons of Storj (STORJ)

Pros

• Node operators can earn STORJ tokens for providing storage space.
• Storage users can pay for storage with STORJ tokens and avoid unnecessary fiat-to-crypto conversion fees.

Cons

• STORJ has a much lower market capitalization than its main competitor Filecoin.
• STORJ is an ERC-20 token, meaning users must pay Ethereum network fees when conducting transactions. These fees can be quite high during high network activity periods.