Storj is a decentralized cloud storage platform that aims to provide a competitive and secure alternative to traditional cloud hosting solutions. It allows users to upload their files, which are then shredded, encrypted, and distributed to multiple decentralized nodes across the globe, allowing users to have access to a much more secure, private and cheap hosting solution while also providing a revenue stream for users that want to monetize their idle HDD space.
Storj runs on a cryptocurrency payment system that uses its own token, StorjCoin X (SJCX) to complete operations in the network. SJCX is a Counterparty asset issued on the Bitcoin blockchain. However, this is about to change.
Last month, Storj labs announced its intentions to migrate its decentralized storage payment system to another network, Ethereum. Storj had been previously using the Bitcoin blockchain through the CounterParty platform. The decision is based on Counterparty’s lack of popularity and development as well as on the growing fees that users had to pay as a result of Bitcoin’s scalability issues.
The success of the Ethereum platform is also a driving factor for the decision, as it is a highly used network with active development. As so, the current Storjcoin X (SJCX) tokens, that have so far been on the Bitcoin blockchain, will be replaced for ERC20 tokens on the Ethereum blockchain.
This migration process will include a crowdfunding campaign that will help Storj distribute the large sum of tokens that the company currently holds, given that only ~10% of the total supply is in circulation. This crowdsale will also help Storj gather more funds to develop and market its product.
The token sale does not mean that more tokens will be issued (diluting the value of the current tokens). Instead, tokens that are currently in the possession of Sotrj labs will be distributed to crowdsale participants. The total supply of the token will remain fixed at 500,000,000, and all SJCX tokens will be convertible on a one-to-one basis.
The Storj token sale will take place on the 19th of May 2017 and will last for one month until the 18th of June 2017. Only after which will the company begin the migration process to the Ethereum network, which will also see the majority of tokens held by the company locked in a time-locked smart contract, which will make them impossible to access until the time period expires. Storj labs also has plans to burn a portion of these tokens.
So, how will this migration work? Users that participate in the crowd sale will be presented with new Storj tokens that will already “live” in the Ethereum blockchain, while current token holders will have to swap their old SJCX for new SJCX through a web on a one to one scale. The webapp will be be released two days after the crowdsale ends (on June 20) and will be available for at least 90 days.
If you want to own SJCX tokens on the Ethereum blockchain, you can either participate in the token sale or buy SJCX now and swap it after the crowdsale ends. Visit the Storj token sale website to learn more.