In our age, trust in centralized cloud storage decreases. We are afraid that our data may leak or the servers may go down. Moreover, millions of people need access to the cloud, which requires high bandwidth that storage can’t always ensure. Storj solves this problem: it’s a decentralized cloud storage where files are split and spread across multiple nodes. No one but a user can access it (even the Storj devs). Let’s see how it works.
What is Storj?
All cloud storage users have the same requirements: data should stay private, hackless, and always available. But in centralized cloud storage, it remains vulnerable. Google Drive or iCloud have access to your data which is stored on the servers that can go down or get hacked.
Storj (pronounced as “storage”) stores your data across a network of geographically diverse nodes. Your files are encrypted and then spread across 80 nodes. For retrieval, only 29 pieces of data need to be available, so it’s nearly impossible for your file to go offline or get accessed by hackers.
Storj was one of the first projects to implement decentralized data storage. The platform was conceived in 2014 and launched in 2018. Storj raised $30 million in an ICO held in 2017.
How it works
- Storj encrypts your data before uploading it into the network. AES-256-GCM symmetric encryption is used, which ensures that the files can’t be accessed without private keys (including the Storj devs). You can grant and revoke permission to open your files at any time.
- Data is split into 80 smaller pieces that are indistinguishable from any other object’s pieces. Since your file isn’t stored in a whole form, there’s no single point of failure, and data breaches are out of the question.
- Data pieces are globally distributed across 80 Storj nodes (there are 10k nodes in total). Since only 29 pieces of data are needed to retrieve the file, even if some nodes are down, you will still access your data. Nodes are selected by reputation and performance.
- You retrieve the object whenever you want. Several nodes going down is not a problem; but if too many pieces of data are lost, Storj initiates the automatic repair process.
We described the flow from the perspective of a Storj customer. However, anyone having some free disk space can become a node, too.
Storj is open-source and lets partners interact with their API.
What is the Storj token?
STORJ is a utility token used for payments on the platform. In the Storj network, you can rent the disk space up to 150 GB/month for free. For more, pay $4/TB and $7/TB as a bandwidth cost. If you host files as a node, you will be rewarded with STORJ. The average payouts per month are $1.5/TB for disk space, $20/TB for egress bandwidth. See more about Storj pricing here: for customers and for nodes.
In 2017, STORJ migrated to the Ethereum blockchain. Now, it functions in the ERC-20 format.
Where Do I Buy Storj?
Buy STORJ in two cases: if you want to leverage the decentralized cloud or if you to invest in Storj.
The tokens are traded on a wide variety of crypto exchanges, including Binance, Coinbase, and Huobi. These platforms allow you to buy this cryptocurrency for another crypto in a matter of seconds. However, you need to sign up first — it takes time, and you have to entrust the platform with your data.
This is not the main risk, though. Storing your tokens on centralized exchanges may be insecure, as crypto stored there doesn’t really belong to you. In CEXs, you don’t keep your private keys, which goes against the proverb “Not your keys — not your crypto”. Here’s the risk: exchanges sometimes limit the fund’s withdrawals, and if the platform gets hacked, your money may be stolen.
On ChangeNOW, you can buy STORJ without registration, and you don’t have to store your cryptocurrency anywhere but in your wallet to do so. You send us some BTC, ETH, or one of the other 200+ assets, and we send you STORJ in a matter of 5 minutes. ChangeNOW partners with many liquidity providers and at the moment of the swap, picks the one that offers the best exchange rate. We don’t have hidden fees — all payments are already included in the estimated rate.
Where should I store Storj?
Any wallet that stores ERC-20 tokens works. For this article, we picked three that would fit best for different situations and needs.
Ledger Nano S
This hardware wallet with top-notch security is almost impossible to hack. Your private keys are stored offline on a flash drive device, so you will need it every time you want to send your tokens. If you are going to store your STORJ rather than trade or actively use it, Ledger is the best choice.
MetaMask
This is a top users’ choice for making the most of Ethereum. MetaMask is a software wallet available for iOS, Android, and for browsers such as Chrome, Firefox, Brave, and Edge. If you already have or plan to get other ERC-20 tokens, MetaMask is the best.
Trust Wallet
This is a multi-asset wallet that supports hundreds of different assets. Available for mobile and desktop, Trust Wallet is a good choice if you want to manage all your crypto portfolio in a single place.
Bottom Line
While concerns regarding the privacy of our data are rising, Storj has created decentralized cloud storage — a platform where data is stored across the network and is unavailable to anyone but its owner. STORJ token is used in the network to pay for the file hosting and to reward the nodes. You can start using Storj right now for free. And, whenever you want to buy STORJ to invest or to leverage the decentralized cloud, feel free to do so on ChangeNOW.