Decentralized storage networks are increasingly popular over major centralized ones such as AWS, Google and Microsoft. The main reason for the change is the low cost of operation and security.
Some popular decentralized storage platforms are Filecoin, Siacoin, Bititorent, and Storj. Among these platforms, Storj has developed a new scalable solution called Storj NEXT, promising a more scalable decentralized solution for Web2 and Web3 companies. With a focus on community building, the latest upgrade introduces a new economic model that provides more participation in the Storj ecosystem.
Storj is a decentralized system of distributed object storage, which keeps information encrypted. Storj is based on Bitcoin blockchain technology and peer-to-peer protocol to provide secure and efficient cloud storage.
Storj uses unused storage on computers around the world with the help of encryption and blockchain. It breaks the uploaded data into smaller fragments and distributes them over the network so that no company or organization can access all the uploaded data.
The decentralized storage platform introduces a new crypto-enabled eternal storage feature, where a dedicated wallet address for a Storj account can unlock eternal storage using Ethereum smart contract payments with STORJ. The feature will allow network participants to be rewarded for staking STORJ, an Ethereum-based fungible token used in the Storj network.
The new model will accommodate the storage needs of both node operators and independent satellite operators. Storj claims its latest update will allow Web2 and Web3 businesses to reduce cloud costs without sacrificing reliability or performance.
The latest update will enable staking as well, which will allow community node and satellite operators to pave the way for passive income for network participants.
Related: Polygon launches decentralized ID product powered by ZK proof
For node operators who want to move beyond operating nodes to operate storage networks, the platform adds capabilities with code, test data, and more. This will allow companies to operate globally distributed storage networks without capital and energy-intensive data centers, called the community satellite model.
Storj claims its decentralized solution is increasingly popular among Web2 companies amid rising storage server costs. In the last year, Storj has scaled from 13,000 to 20,000 nodes, leading to a 40x increase in network usage.