Why does Storj use the STORJ token?

I would like to open discussion about Storj coin, why it was chosen or made, why not use etherium directly or some other independent coin not token. It makes aditional charges to conver transfor, and cant pay this price in storj token, need etherium. Any coin will be very stable, because of storj use will stibilize it. Something like Bulwark coin, it not have mining any more, only staking, 51% mining atack is not posible. Have high transver speed, at least 3 exchanges. It is just example. Also it could be some payment deteils for what node, upload, TB*h is minimum. There is a minimum count of storj tokent to transfer it to etherium, a least on Myetherwallet. As there is a minimum to cenvert and ether is droping in price i loose money all the time, when i received last month paimant it was worth 14$ now it is below 12

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Thanks @vadim! I will open that discussion for you right now, hang tight! :slight_smile:

It would be wonderfool if Storj people give some information about topic.

hi @vadim – Im pinging someone who knows more about this particular decision. I have a bunch of info about how the token is used, but youre asking about why the token is used :slight_smile:

As i just writen in other post,

it is realy not comfortable to use tokens.

I do know that one advantage of using tokens is that entities can pay people across the world, in a way that would not be feasible otherwise… and also in very precise amounts or even micropayments. I’d also say that STORJ was intended as a utility token, and its a different thing than a crypto/mining situation.

So although we do utilize blockchain technology as a payment mechanism, we aren’t trying to be Bitcoin or Ethereum. We’re using blockchain as a means to an end… but our product is our storage layer platform, and that’s really our focus.

I didnt mind that not using crypto at all, but there is hundreds of crypto to use and whith what you can pay for transfer and other with its crypto itself. There are more faster and chiper ways to use cryptos, but tokens on base of other coins and if you want do something you have to have this base coins. there is also minimum swap amount what is 254,2 Storj to change to etherium. And if it would be posible to change and charges will be held from exchanged amount, then it would be somehow acceptable way. But it work in totaly wrong way.

Hi Vadim,

Here’s my unofficial answer (others may have more to add). Ethereum blockchain tech enables the network to programmatically pay a massive network across the globe. At our peak capacity with V2, the network was paying over 150k storage node operator IDs each month (in over 180 countries and territories). This would be ultimately very difficult to do over ACH rails in a way that is programatic.

We are big proponents of decentralized blockchain technology, and view it as a critical rail to achieve the master plan for the network (ie - where everything is automated and humans are eliminated, ala https://bitcointalk.org/index.php?topic=53855.msg642768#msg642768 to https://storj.io/storjv3.pdf)

We try to remain agnostic, and not overly maximalistic for the underlying rail that is used to achieve our vision. Today, due to ethereum’s developer ecosystem, open-source tooling, and detailed roadmap, we view it as the best tech to help drive the vision forward.

Their are noted limitations, however. At the peak of our payment processing, our transactions accounted for about 8% of all Ethereum transactions, and gas prices got high. We have actively been building POCs around micropayment concepts like Raiden (https://storj.io/blog/2018/12/taking-payments-to-the-next-level-with-raiden/) and plasma sidechain solutions like Matic to explore ways to reduce (or eliminate) gas fees for node operators while still rooting security for payments in the blockchain itself.

Ultimately we will likely evolve with the rest of the blockchain ecosystem in the direction of usability, performance, privacy, and economics – without being overly quick to commit to an L2 solution.

We are also actively exploring the proposed ETH2.0 spec, which interestingly, includes technologies that are central to Storj for blockchain sharding (mainly erasure coding: https://github.com/ethereum/research/wiki/A-note-on-data-availability-and-erasure-coding)

Ultimately, I’d say the goal is to continue to build an experience that is great for node operators, and enables the network to function at a global scale! :slight_smile:

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Thank you for reply, why not use node processing power to process payments, you have big node infrastructure, they can process lot of operations, at same time can utilize processor power, like in my node there is i5, than almost do nothing.

I’m no crypto expert, but I’m sure you’re doing something wrong. You can send STORJ to an exchange which accepts it for a few cents. There you can convert your STORJ to USD. Binance for instance charges 7.67 STORJ per transaction. That’s nowhere near €10.

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this is the dedend, i have wallet on myether walet, to transfer storj i need ether, and i not have ether, to buy it with real money it is about 10 eur. Because of fees, from credid card.

not sure what you are doing but especially with the surge payouts I’m making a lot more money than electricity.
Hardware deterioration? The hardware should be running anyway.
And nobody can just “create” higher utilization on tardigrade network, that will depend on the users and developers…

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Then you chose the wrong wallet? I use Atomic wallet and I could exchange STORJ for anything I like directly inside the wallet.

Hey @kevink, did you actually try this? Because I’m using Atomic Wallet too, and it says that the STORJ pair is inactive. I will have to use Binance on my side to convert STORJ to Bitcoins, and then yet another platform to get Euros out ot Bitcoins.

Never tried the whole process yet though, so I’m not sure how much I’d lose on the way.
I only have 10€ worth of STORJ at the moment so I’m not even sure it’s possible to withdraw so little from an exchange. Maybe I’ll give it a go in the following weeks though, just to see how it works.

oh yes the pair is temporary unavailable… I remember that it used to work although I never explicitly tried it. But since it says “temporary” I hope it’ll be available again soon.

with the surge payouts I’m making a lot more money than electricity.

True, if it’s just electricity, but if we calculate hardware deterioriation as well, the number doesn’t looks good unless the utilization & fill rate improve, by a lot.

Hardware deterioration? The hardware should be running anyway.

Perhaps, for some SNOs who already have a 24/7 running hardware with spare disk space. But definitely not all. If we want to talk about real growth and sustainability for storj network, I don’t think it is wise to limit SNOs participation only to this specific scenario.

And nobody can just “create” higher utilization on tardigrade network, that will depend on the users and developers…

All business depends on customers willingness to purchase and use the product, but we can certainly do something to motivate and encourage them.

I apologize in advance if this reply sounds harsh or offensive to any party (which I assure you, is NOT and never my intention). Against storj recommendation, I am pouring money for dedicated storage node hardwares. I want storj to succeed, as I have stake as SNO and potentially, a decent sized tardigrade customer.

You may find this knowledge base article useful. Note that some coin swapping sites do not require you to make an account or KYC, so at least it would make the first step of the conversion a bit easier.