Storj has released its 18-page white paper, co-authored by Tome Boshevski, Josh Brandoff and Ethereum co-founder Vitalik Buterin.
Storj seeks to decentralize cloud storage by creating an open market for participants to sell their available disk space. In August, the startup wrapped up its crowdfunding round, raising 910 BTC (9%) of the 9800 BTC goal.
The paper describes how the protocol incentivizes network participants with the Storjcoin X cryptocurrency and allows for the successful storage, transfer and encryption of data without a third-party provider. Even in the absence of a peer-to-peer (p2p) network, the technology can be used to ensure third-party providers don’t have direct access to data stored in their facilities.
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The technology is also touted for providing an alternative to centralized networks that are vulnerable to outage and failure, as well as having potential for being more cost effective.
Storj addresses Sybil attacks, which forge identities in reputation-based p2p networks, by providing unique encryption for each “shard” or encrypted file portion.
Currently, it is not feasible to use the Bitcoin blockchain for the storage of metadata. Instead, a technology called Florincoin (an altcoin that enables transaction comments) would be used until Bitcoin blockchain technology is further developed, at which point other intermediaries can be used along with Ethereum to create enforceable contracts.