Storj works similarly to a cloud storage platform which allows any user who chooses to run its software to rent his or hers unused hard drive space to other users who are interested in finding storage space.

Storage, however, relies on having its own software, its network of computers and its very own cryptocurrency, STORJ.

By using STORJ, users can pay other people on the Storj network to store whichever files they need while the ones who wish to sell their storage and bandwidth may do so and accept Storj’s crypto in return.

Random file verification happens in the Storj network every hour in order to attest that all files are consistently being hosted by nodes as they claim to be doing.

Storj will audit the network by sending requests to its node operators who, in turn, must send cryptographic proof that they are in fact in possession of the data they were entrusted with. This proof acts as a receipt as nodes will then receive payment for their work in storing and maintaining said files.

By doing so, Storj maximizes the quality of storage on its network.

Storj Explained

The Storj network runs on the back of three main actors:

1. Storage Nodes: which allow Storj’s users to rent out their excess storage space, to store and to return data

2. Uplinks: which run on the client’s side of things and allows them to update files to the Storj network while coordinating with its peers as to store and retrieve data

3. Satellites: which coordinate traffic between the previous 2 components (Uplinks and Storage Nodes). Satellites will also store metadata while keeping nodes honest and performing payment distribution. Each Storj user is provided with an account on a satellite.

As users receive permission to store data on the network’s satellites, his or her files are split into segments and stripes (which are a piece of a segment).

After splitting said files, Storj will start distributing and storing them throughout its network and in order for users to retrieve them, the very same private key which was used to encrypt and compress the files must be used to decrypt them.

As nodes can potentially go offline, Storj will replicate stripes and send them to several different nodes.

The History Behind Storj

Storj is the vision of Shawn Wilkinson and John Quinn. They launched Storj Labs in 2014, created Storj over the Bitcoin blockchain but later migrated to the Ethereum blockchain.

Storj raised an estimate $30 million US Dollars in a 2017 token sale.