A Beginner´s Guide to Buying, Selling, Using, and Mining Storj:
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Cloud technology has changed the way we handle our data. Due to the fact that we are almost never without an internet connection, either through cellular data or wifi, data no longer needs to be stored on a single piece like a USB stick or hard drive. We want access to our data at all times, instantly. This is what cloud data storage has provided. Its how we store documents, listen to music and access our important files. But could it be better? One cryptocurrency, Storj thinks so.
Storj (STORJ) is a crypto token that uses its blockchain to manage data storage on the cloud. Cloud storage has changed the way we think about storing our data. It allows us to save space on our personal computers and hard drives by outsourcing our documents to a centralized server that holds the information. The only thing we need to receive the data is an internet connection. Companies like Dropbox, Google and Amazon have all utilized this technology with high levels of success. But Storj wants to make it better.
While cloud based storage has many advantages, there are also some disadvantages. The main knock against this method is that the server is centralized in a single location. Also the storage company has access to your documents. With Storj, blockchain technology is used to store your data instead of a centralized server, meaning the server is decentralized.
Storj is also a token, and is built on Ethereums blockchain. The token is how payment is made to buy room to store your data. As transactions are made with Storj to pay for the data space, they are added to the chain as a block. Once added they cannot be removed, making the transaction completely secure. The transactions are also visible to others. This vulnerability ensures that all payments are legitimate. There are many other helpful sites that provide a definition of Storj, including Reddit.
Storj can be bought just like any other crypto token. First, youll need to purchase a token that can be traded for Storj, like Bitcoin (BTC) or Ethereum (ETH), which can be purchased with cash or with credit card. Then, use Poloniex to trade that coin for Storj. From there, youll need to use the key given to transfer the Storj into your digital wallet.
It is important to note that Storj initially began as Storjcoin X (SJCX), which has since been deprecated. Therefore all SJCX tokens should be turned into STORJ as quickly as possible, as SJCX is no longer an acceptable payment for storage. The transfer takes place through an application on the official Storj website.
Ready to sell? Its equally as easy to withdraw from STORJ as it is to purchase it to begin with. The same basic steps are followed, only in reverse. First, send your STORJ back to Poloniex from your wallet. Then, use Poloniex to transfer the STORJ into another form of cryptocurrency, like Bitcoin. Once its been turned into Bitcoin, use Coinbase to convert your Bitcoin to USD. Finally, visit an ATM to complete your cashout.
Storj is designed to be used as a cloud based storage system. Users are in complete control as they upload their documents to the cloud. Instead of your documents being stored on a single centralized server, they are shredded and sent to the users powering the blockchain. In turn, the uploader is given a key to their documents. This means that they are in complete control of of their data, not the company storing it.
Another way to use Storj is to rent out your unused computer storage space to the blockchain. In return, you will be paid with Storj. When lending storage space, you dont have access to the data you are storing, providing complete security for the renter.
Lastly, Storj can be used by investing in its token, STORJ. The token can be purchased outright, or received by lending storage space for others. Storj can be stored in a digital wallet, providing a place for it to sit and grow in value depending on the demand for the currency. Exchange rates into other fiat and cryptocurrencies help determine the price of Storj when the time comes to buy or sell the token.
Because Storj is issued on the Ethereum blockchain as a counterparty asset, mining Storj is a unique endeavor. This is because Storj isnt technically mined, but farmed. Its similar to mining a proof of work cryptocurrency. However instead of providing computing power in the form of a calculator, farming provides storage space. Traditionally, miners provide their computing power in return for that networks coin. But with Storj, farmers provide space in return for STORJ.
To begin mining or farming Storj, users need to create a Storj wallet ID. Then theyll need to download the latest version of the Storj software. From there, youll be able to loan out your unused computer space to store encrypted pieces of other users data and be rewarded with STORJ. The profitability of mining STORJ is based in part on the market cap for the coin. The more users devote their space to the blockchain, the more the cap grows.
As a price chart for a coin grows, there is a need to be able to handle all of the transactions that are coming through in a timely manner. This growth, and the ability to keep up with it is called scaling. Its important for a coin to scale well as every coin is trying to grow. Storj uses BitSwap ledgers to count the bytes sent and received, in order for the coin to scale well. Also, the recent move from Bitcoins blockchain to Ethereums blockchain helped relieve some of the backlog and improved scalability.
Storj combines the power of blockchain with the brilliance of cloud data storage. It takes the best of both worlds, making cloud storage better than before. Not only is it safer and more reliable, its also cheaper. Storj boasts significantly better prices than its major competitors. Keep an eye on the Storj chart to see how this coin performs.