What is Storjcoin X?
It’s a fact of modern life that we all have more data storage capacity than we need: Storj is a platform that aims to take advantage of that idling diskspace. The core protocol is based on end-to-end encrypted storage, which a token system that operates on the basis of smart contracts (or ‘storage contracts’ if you read the press kit). Instead of mining (as on the bitcoin blockchain), users who provide storage (‘farmers’) and those using the storage (‘renters’) are rewarded with small payments of cryptocurrency for utilising the platform.
The relationship between farmers and renters is comparable to the feeders and seeders on a torrenting platform, while they are prevented from gaming the system by decentralising contract negotiation. If you’ve ever purchased or traded in MaidSafe, you’ll be in familiar territory here.
Farmers and renters are rewarded with Storjcoin X, a Counterparty asset that relies on the bitcoin blockchain, with a fixed total of 500m coins. After an initial distribution through a crowdsale (that raised around 900 bitcoin at a rate of 38,500 Storjcoin per bitcoin), and a further sale in which 8m were distributed.
At the time of writing, the coin is listed at Poloniex, Bittrex and ShapeShift, so there are plenty of solid exchanges on board. But does Storj represent a viable trading opportunity? Is this just another blockchain-based token that will run into the same wall at volume that has sucked the fun out of bitcoin and Ether? Let’s investigate…
How Does Storj Work?
Storj provides end-to-end, decentralised encrypted cloud storage, and permits peer-to-peer negotiation and verification of contracts. The renters who utilise the storage space provided by farmers regularly audit how good a job the farmers are doing of looking after their files, and receive a small payment in Storjcoin X for their trouble after each successful audit. Meanwhile, if a file’s owner fails to audit or pay their services in a timely fashion, they can choose to stop storing that file.
In order to ensure maximum security, files are broken up into shards. These shards are then stored redundantly three times as standard. If copies become unavailable for any reason, the network can automatically locate a new farmer. The contracts between farmers and renters are conducted by a fully decentralised key-value store, running on Kademila. There are contingencies in place to ensure that farmers and renters cannot cheat one another by, say, fiddling the audits.
By breaking data down into shards, it is nigh-inconceivable for unauthorised parties to access data stored via Storj. Moreover, because data is automatically distributed, download speed is boosted thanks to the utilisation of many parallel connections. There is also a suite of tools available to end users, including a client that permits farming on the three big operating systems. This makes the systems extremely user friendly ‒ with a few clicks you can get the protocol up and running on Windows, Mac or Linux and start racking up tokens.
Moreover, the Storj Client gives you access to the platform’s API, and you can manage your account either via this client or a web-app. Rather than a standard blockchain where every user must become an integral part of the overall network, the usability of the platform is increased, while minimally diminishing the advantages of decentralisation.
Value of Storjcoin X
Storj is an unusual prospect, as a cloud storage solution that also operates a token system to support open-source dev teams and distributed applications. An ICT earlier this year was intended to speed up product development, dev adoption and growth of the network. Coins were released on May 19 at a rate of £0.50 per coin, with discounts for large investors. This has created plenty of liquidity off the bat. The greater divisibility of Storjcoin X compared to, say, bitcoin provides sufficient granularity to support nano and micropayments (thanks to low transaction fees), which have built in protection against volatility.
From the start, Storj partnered with Microsoft Azure and Heroku, and signed a service agreement with a Fortune 500 company. A lot of people have thrown money at this exciting new platform, which has resulted in an impressive early performance: notching a market cap of $39,850,336. However, the token has dipped somewhat is value to $0.4 USD each, although it appears to have levelled out. Naturally, this is early days, and the value of this token will take some time to assert itself.
How to Trade Storjcoin X Online - Step-by-Step Guide
Storjcoin X has been listed at several credible exchanges, so if you missed the ICO, you can still pick up this token by trading on the cryptocurrency markets. If you were quick enough on the draw to make the crowdsale and you have a wallet full of this token somewhere, you can transfer it from your holding wallet to an exchange and realise its value through trading.
Please note that you cannot buy Storjcoin X with fiat, but you can trade for it using a number of other cryptocurrencies, meaning you can still edge the market. This straightforward, step-by-step guide will explain how to trade for Storjcoin X using Poloniex (for example):
- Get over to poloniex.com and set up a new account if you don’t have one already. The platform requires all the standard user details including your name, a nominated email address, a secure password, your geographical location and (if you want to trade at high levels) a verifiable photo ID.
- You cannot buy Storjcoin X outright with fiat. If you haven’t made any through mining you will have to trade another cryptocurrency for it. So begin by purchasing a popular coin like bitcoin, Ether or Litecoin so you have some funds in your balance. Alternatively, you can transfer coin from any of your wallets using your unique address.
- Once you have some coin in your balance, click on the ‘Exchange’ tab. This will allow you to check the performance of Storjcoin against other cryptocurrencies. For example, if you select the BTC/SJCX from the menu to the right of the charts, you can check the going rate of Storjcoin X against bitcoin.
- If you are an experienced and competent trader, then Poloniex offers an extensive suite of tools to help you make more informed trades. For instance, you can review the market price of any cryptocurrency or instrument listed on the exchange over different timeframes. You can also investigate Storjcoin’s market depth, and import many stats from the markets.
- When you’re ready to trade, go to the fields underneath the chart and set your limits. The platform will automatically buy Storjcoin at the price you set when it is reached. That’s all there is to it!
What is the Cost of Using Storj?
Pricing for using the Storj platform is very competitive: storage is valued at $0.015 per GB per month, and best of all: you don’t need to pay for this storage space in advance. Instead, you are charged on a pay-as-you-go basis, only paying for the space you need. Bandwidth is priced at $0.05 per GB downloaded per download.
How Do I Make Money from Storjcoin X?
The relatively low cost of renting storage means you are not going to net a huge return from passively renting a ‘normal’ amount of space. However, if you have a great rig (or a network of rigs) and can rent in the order of tetrabytes, you can passively rack up very large amounts of Storjcoin X, which can in turn be used to rent further storage space.
This is a really great option for businesses, which use large networks of machines. Not only does Storj provide an excellent, and highly secure data storage and encryption system, but all your spare diskspace can in turn be used to acquire lots of coin, which can in turn be traded at a profit. Be warned, this is not a platform for hobbyists: much like Ether and bitcoin mining, you need a serious amount of firepower to rack up tokens.
The advantage of this system compared to mining other blockchain-based coins is that you are not limited by the depth of your purse: only the bodaciousness of your rig. If you have a lot of unused storage, there is really no good reason not to get on board with this.
How to Mine Storjcoin X
The process for mining Storjcoin X is very straightforward. First, get over to https://wallet.counterwallet.io and create a wallet. Be sure to make a copy of your unique seed, as you will not be able to recover it if you ever lose it. Next, download the Storj app from Github (https://github.com/Storj/storjshare-gui/releases) and choose the right download link for your operating system.
A screen will pop up once the file is installed. Plug the seed copied earlier into the field marked ‘Payout Address’. Next, get over to the hard drive that you wish to use for farming/renting, create an empty folder and select it in the file browser in the Storj app. Simply select the amount of diskspace you want to rent and set it going: your computer will now be renting out unused storage space and you will soon begin acquiring Storjcoin X.
Future of Storjcoin X Trading
There are people in the cryptocurrency scene who argue that the bullish confidence of Storj might be premature. It has been argued that the company’s whitepaper does not actually solve any of the core issues with decentralised cloud storage (such as community drop-off).
It is clear that Storj aims to compete by undercutting the competition: providing an extremely cheap and efficient solution to data storage. However, the danger is that it will struggle beyond the initial burst of enthusiasm, as the protocol relies on a sufficient number of users renting out their storage space. For a torrent site, where there is a clear utility in terms of faster file downloads for movies, games, programmes and the like, this model makes sense. However, when the only incentive is better storage and a (presently fairly low-value) cryptocurrency, it is a little harder to envision how the platform can keep up the goodwill.
Moreover, there is a bar of entry for ordinary users, given the low reward/high data storage model upon which Storj operates. For anyone who isn’t sharing the costs of running their machine(s), the incentive of ranking up a few tokens might be outweighed by the electricity and bill needed to leave their rigs running 24/7. The fact that this is a platform for big players probably limits its viability as mainstream investment opportunity, but only time will tell.
How to Buy Storjcoin X with Credit Card
As mentioned above, you can’t purchase Storjcoin X outright. However, plenty of popular exchanges, such as CEX.IO, permit users to obtain cryptocurrencies such as bitcoin, Litecoin and Ether on credit and debit card, which can in turn be traded on exchanges like Poloniex and Bittrex for Storjcoin X.
Getting funds into your balance from your credit or debit card is comparable to transferring from a bank account. However, CEX.IO takes a 3.5 per cent commission on these transfers, resulting in a modest additional fee. On the flipside, transfers from credit cards are very secure, and clear more quickly than a bank transfer.
How to Buy Storjcoin X with PayPal
There aren’t no exchanges with PayPal support that list Storjcoin X. However, if you want to pick up Bitcoin, Ether or Litecoin using this method, you can do so on Coinbase. At present, this option is only available to users from the US. If you are from this territory, simply link you PayPal account to the Coinbase platform by selecting it as a chosen payment method and verifying your account manually.
At the moment, the service is still in the beta phase, but Coinbase intends to roll out PayPal support to other territories in the near future. Handling your funds via PayPal is very secure and permits instant transactions, although again ‒ a small fee will be added.
Cryptocurrency Guide list
Enjoyed this Bitcoin guide? Then see our other cryptocurrency guides:
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