Storj: the new cloud Bitcoin storage technology

December 25, 2014

Bitcoin storage

A startup called Storj has come out with the idea of a decentralized cloud Bitcoin storage. It will, however, take them some time to fully implement the concept. is the reaction to the loss of confidence in the centralized server storage systems. Numerous hacker attacks we have seen this year finally convinced people that even large corporations lack to ensure the protection of their customers’ data. It is very possible, that Storj is there to put an end to hackers’ outrage.

Elimination of the centralized control can solve most of the traditional problems associated with databank failures and unavailability, and thus significantly improve the security, privacy and… the control. In addition, Storj intends to periodically check the integrity and availability of files on the users’ disks and reward them for their responsible attitude to service and maintaining data availability.

As a part of their project, Storj will create a network of users willing to let out free space on their hard disks. For that, they will be rewarded with certain amounts of Storjcoin X (SJCX) – Storj’s own cryptocurrency convertible into capacity, free space in repository and other currencies. Files stored in Storj will be divided into shards, encrypted and distributed over the network.

In order to achieve consensus on the location and integrity of files, the data will be inserted into a standard block chain as a result of a standard transaction with additional metadata. As Bitcoin block chain is too expensive and technically tricky to use (because of strict restrictions on metadata transactions), Storj will at first be using a currency called Florincoin to store metadata.

However, to circumvent the restrictions related to Bitcoin block chain in the future, the following unique approach will be used to turn the cloud Bitcoin storage concept into reality: the company intends to apply scalable proof-of-existence design providing a more direct access to BTC block chain. With these improvements made, Storj can integrate Factom and similar systems to increase capacity and use Ethereum services to create automated data storage contracts.

Combining the benefits of these advanced technologies can be an important achievement forming a symbiotic network of developers. From the very beginning, cooperation has been an important part of Storj team philosophy, and this is evident even in Storj’s relations with companies belonging to the same market niche, such as Maidsafe.