Storj Switching to Ethereum Blockchain

Blockchain, FinTech, News | March 27, 2017 By:

Atlanta-based Storj Labs, developers of the blockchain-based cloud storage network Storj, announced that it is going to drop the bitcoin-based Counterparty protocol and move to the ethereum blockchain platform.

Storj Labs partnered with Counterparty last year to work on ultra-fast micropayments for its proprietary token SJCX, which would have been based on the upcoming Lightning Network being developed by bitcoin core developers. The token is used to incentivize users with spare computer storage to safeguard the files of enterprise users. That technology is then sold as a software-as-a-service.

However, the company claimed rising bitcoin transaction fees and delays, coupled with the lack of development and updates of the Counterparty platform, have prompted a migration to the ethereum ecosystem, which Storj Labs CEO Sean Wilkinson called a “more active and robust development community.”

“If you’re building a train and they’re building a track, one with the larger network, you’re going to choose the larger network,” said a statement from Wilkinson. “It’s not only a technical issue of which one do we go to, it’s a question of which one is more widely used.”

After the migration, Storj will be using the Ethereum ERC20 token standard, which observers claim offers faster transaction confirmations and lower fees.

Ethereum’s token platform already supports the tokens of major projects like decentralized computing platform Golem (GNT), as well as REP, the token of the decentralized prediction market Augur.