Storj DCS: Decentralized Cloud Storage

Storj DCS (Decentralized Cloud Storage) is private by design and secure by default — delivering unparalleled data protection and privacy when compared to traditional centralized cloud object storage alternatives, like Amazon Web Services (AWS). This innovative, decentralized solution encrypts, divides, and distributes files to thousands of statistically uncorrelated nodes and ISPs around the world. Decentralization delivers the highest possible levels of security and privacy for users who demand to own their data and control its use, integrity, and access. For example: decentralized data can’t be censored or monitored and its associated probability of network downtime is significantly reduced because it lacks a central point of failure. It is also resistant to tampering and ransomware attacks. By bringing decentralization to cloud-based storage, Storj DCS is able to deliver privacy and security benefits as well as providing inherently better economics than centralized alternatives.

Here’s how it works: Storj incentivizes two parties to use the network — those with extra bandwidth and storage capacity on their computers (host Storage Nodes), and those in need of this excess capacity (utilize Storj DCS). While anyone can use the cloud object storage service, the platform offers the most utility for developers, start-ups, and large-scale projects with high capacity storage requirements. The Storj Network uses STORJ token, an ERC-20 utility token, as an exchange of value across the network. The token enables Storj to send and receive payments around the world for minimal costs and no currency conversion fees. Payments with STORJ token also provide a fast, transparent, scalable and easy payment solution for customers.

Though early versions of the Storj protocol were blockchain-based, the current iteration of Storj does not utilize blockchain architecture. Instead, Storj comprises a global network of independent nodes and a peer-to-peer communications protocol which allows the Nodes to communicate. This means that, although the Storj network prioritizes decentralization and is somewhat similar to a blockchain infrastructure, it is not beholden to the transactional limitations of blockchain consensus mechanisms.

Storj’s Decentralized Advantages

Storj DCS has some notable advantages over centralized cloud storage incumbents. If you use Storj DCS for cloud object storage, each file is split into 80 or more pieces and distributed globally. As there is no central point of failure, catastrophic file loss is prevented thanks to a redundancy that’s built into the system. And, if certain pieces are lost due to a storage failure or a Storage Node leaving the network, only 30 pieces are actually needed to reconstitute the file. In fact, the network has never lost a file.

Additionally, Storj DCS delivers inherently more favorable economics than those offered by key centralized storage providers. As a decentralized service, Storj can crowd-source storage capacity for cloud object storage users while incentivizing Storj Nodes to join the network and scale as needed. And with no centralized data center overhead, savings get passed on to users. No exorbitant egress fees, complex cost structures or extra costs for multi-region that tend to lock users in all help Storj DCS effectively compete with the huge centralized data providers that need large capital investments in order to stay solvent on the sometimes slim profit margins of data storage.

Storj for Users and Nodes: An Overview

Storage Nodes can be thought of collectively as a decentralized data center. Nodes simply download the Storj software, advertise how much bandwidth and data capacity they’d like to offer, and designate a Storj wallet address if they wish to receive payment in STORJ tokens. The STORJ token is built on top of Ethereum using the ERC-20 token standard. The primary functions of a Node are to store and return data, both of which they are compensated for. Storj carries out random audits to ensure that Nodes are honestly storing data. If they are found to be acting maliciously, they are removed from the network and will not receive payment.

Storj’s Satellites

In addition to the storage providers and users, the Storj ecosystem also features data and security validators called Satellites. These Satellites play an important and multi-faceted role in managing, securing, and maintaining the network. Likewise, they ensure that Storage Nodes are acting honestly and that service payments are properly sent and received.

Storj Satellites are also responsible for storing the encrypted metadata of objects uploaded to the Storj network. This metadata shows where the pieces of a file are so that it can be reconstituted. While Satellites know the locations of the file pieces, Satellites can’t decrypt the objects themselves. They simply combine the segments for the rightful owner upon request. Satellites also repair and replace data pieces. If they detect that data segment redundancy is too low, they regenerate the pieces on other nodes. This maintains robust file redundancy even as Nodes sporadically join and leave the network. Additionally, when data is moved or deleted, Satellites notify the storage nodes that the data can be deleted to make room for other files.

Satellites also audit Storage Nodes to ensure they are in fact storing the data they claim to be. If a Node can’t prove that it has the data through this probabilistic spot check, the Satellite will take the Node offline and regenerate its missing data on new Nodes. Satellites also incentivize long-term and stable Node activity. A portion of a Node’s monthly earnings are held to ensure the Node acts rationally. If Nodes frequently go offline, that withheld amount is abandoned and used to repair the missing data.

While Satellites can choose to disqualify Storage Nodes for bad behavior, Storage Nodes can also stop using a Satellite if they feel that the Satellite’s payment and performance history is lacking. In this way, both the Storage Nodes and Satellites are incentivized to be honest actors.

Storj Hacking Defense

In addition to financially incentivizing all parties to act optimally, Storj is thoroughly protected from common network vulnerabilities like Honest Geppetto, Spartacus, Sybil, and Eclipse attacks. Another vulnerability Storj is protected from is a Hostage Bytes scenario, in which a rogue Node holds the last bytes of data hostage for a financial ransom. Storj has solved this by enabling Node and file segment dispersion. Even with a large number of colluding Nodes, this attack would be difficult to achieve as duplicate copies of the ransomed data would still likely be available elsewhere on the network.

If you’re a developer with data to store, try Storj DCS out today. Storj is offering a free plan that allows customers to store up to 150 GB of data across 3 projects. If you need more than that, Storj is more than 80% more affordable than centralized cloud storage providers.