- Storj is a decentralized cloud storage solution.
- Storj works on the concepts of contracts and audits.
We produce nearly 328.77 million terabytes of data every day. For storing and retrieving this data, people rely on centralized cloud service providers such as Amazon and Google. These companies have the resources to build huge data centers and handle such large volumes of data. However, we all have faced the issues of server down, read the cases of data breaches, and increased storage costs. The companies face the issue of scalability to meet user demands of supporting larger formats and providing data quickly.
Whether in a centralized or decentralized system, the privacy of data should always be maintained, providing users with the confidence that their data is not accessed by others. In decentralized platforms, this is especially needed, where unreliable nodes are present. Some users who are not from the US may feel insecure about storing their data because of geopolitical reasons.
Several sectors like the health and tax sector have regulations on how any concerned data may be stored. A single entity should not be able to manipulate or disturb the working of the network in a decentralized system. By means of trusting a single company, organization, or entity with most of the world’s data can be risky, as they will have a monopoly. In a decentralized system, even if the company stops existing, the data will continue to live.
A decentralized model for storing data provides a possible solution that can improve performance, security and provide economical storage options. Several factors come into the picture while designing a decentralized cloud storage platform like bandwidth, latency, Byzantine Fault Tolerance, speed, capacity, and reliance. We need a model where data can be stored and served in a secure manner, free from attacks, and is more economical than the traditional cloud storage options.
Storj and Its Working
Storj aims to solve the data storing issues by providing a decentralized and end-to-end encrypted cloud platform.
- Storj Protocol
The protocol is a peer-to-peer storage contract that allows people to exchange their computer spaces with money anonymously. The one lending their space is called a farmer and the one buying the space is called a renter. The protocol connects these two without disclosing each other’s information.
- Storage Contract and Audits
This contract between farmer and renter has a fixed period and needs to be regularly verified through a process known as an audit. The renter asks the farmer if they have stored their data. The farmer responds to this challenge by providing cryptographic proof. On receiving this proof, the renter makes the payment.
Audit = Challenge >> Proof >> Payment
Once the contract ends, both parties are free to end or continue the relationship. For payment, the network relies on the micropayment channel of cryptocurrencies rather than the traditional SEPA or ACH network. This ensures that several such micropayments are possible and that an audit and payment occur as close as possible.
- Contract Enforcement
The network uses a tit-for-tat model for the implementation of the contract. If somehow the farmer fails the audit, then the renter no longer needs to pay since the service has ended. The same goes for the renter, if they fail to make payment, the farmer can dump their data and find a new client. These audits make the network dependable.
- Storj Network
Storj has built a network to allow lenders and farmers to meet, contact, and negotiate with each other. This is built atop the Distributed Hash Table (DHT) and uses a modified version of the Kademlia algorithm.
The lender and farmers broadcast their offer to a network of nodes and the interested parties can contact each other. This allows parties to have a bunch of potential customers and go with the most suited one. This permissionless market differs from a centralized market where a single entity controlled the distribution of offers.
- StorjAPI
The users are provided with a smooth and easy interface to make payments and focus on negotiation, while all the complex processes are carried behind the curtain. The network has two tools, namely, Storej Share and Storj Bridge which take care of bandwidth, availability, and any other commitments needed by a renter.
Final Thoughts
Storj has its native token the STORJ tokens which can be used by users to buy space, storage, and bandwidth. The token is also used to reward network nodes who contribute long-term storage and bandwidth to the network. The network is more than a cloud storage company and has a growing community that shares the same passion and goal of changing the future of object storage.