Filecoin (FIL) Vs. Storj (STORJ) — Battle Of Crypto Storage

Data storage continues to be one of the most challenging issues in the tech world. The growth of cloud-based internet servers like Amazon Web Services (AWS) shows the immense opportunities in data storage. This cloud storage industry is projected to reach $222.25 billion in 2027, growing at a compound annual growth rate (CAGR) of 21.7 percent from 2020 to 2027.

That said, the dominance of centralized cloud storage solutions does not sit well with many because of downtimes, limited control, and in some instances, the absence of backup protection. Blockchain technology has provided opportunities to rectify some of the ills occasioned by the centralization of money. Similarly, this innovation is disrupting data storage by creating more accountable solutions for consumers.

Filecoin and Storj have been two emerging stars in this scene since 2017. Considering the growing demand for decentralized cloud storage, their value proposition, and the sheer size of the market, many are interested in exploring these blockchain-based solutions. Each decentralized storage protocol attempts to offer the most competitive storage services.

About Filecoin (FIL)

Filecoin seeks to create a distinction in a competitive sector, where there is heavy competition from established centralized providers. FIL’s goal is to provide cost-efficient services with high censorship resistance that’s accessible to all.

Filecoin operates as a second layer of the InterPlanetary File System (IPFS) blockchain. The IPFS is a blockchain protocol and peer-to-peer network for storing and sharing data in a distributed file system. It provides a decentralized storage hub for people and businesses to store their data in a secure system.

The IPFS utilizes storage providers’ hardware who act as the miners of decentralized data storage. They are in charge of retrieving stored data for every user and are responsible for securing the network.

Filecoin has a consensus protocol called the proof-of-storage concept to ensure that miners conduct their storage/retrieving duties. This process occurs in two parts. They provide proof of replication, which entails the miner proving that they have stored a unique set of data in the space they own, and proof of space-time, which requires storage providers to show that data has been in storage for a specific amount of time.

Miners need to have robust storage capacity to participate in the Filecoin Network. Admittedly, it may be difficult to challenge traditional cloud storage providers such as Amazon which has some of the largest data centers in the world. Therefore, the main advantage solutions like Filecoin have over traditional cloud storage providers is their resistance to censorship.

Filecoin conducted an ICO in 20217 via CoinList — a project formed between Angelist and Protocol Labs which builds Filecoin —raising $250 million. However, it wasn’t until 2020 when Filecoin launched its mainnet.

Exploring Storj (STORJ)

The Storj platform provides an excellent alternative for people seeking decentralized blockchain cloud storage. Storj offers secure, encrypted, private, and reliable services. The aspect of encryption distinguishes Storj for privacy over most other storage solutions: the platform encrypts user data using private keys. This ensures that only the data owner has access to the complete file.

The storage architecture utilizes ‘farmers’ and ‘renters.’ Farmers are the hardware providers contributing their storage space to the network. Renters purchase this space using STORJ, the platform’s native currency, and can benefit from a secure and efficient decentralized storage system.

Cryptographic encryption and distribution of the files across several nodes ensure that the data is secure and safe even in data breaches. The data is in tiny pieces located in thousands of Storj’s nodes distributed globally. Once the owner requests the data, the network amalgamates the file, and the user can access it through their private keys.

Storj utilizes Ethereum smart contracts to work efficiently. The compatibility of STORJ with several wallets is possible as an ERC-20 standard token.

Analyzing the Difference

Filecoin utilizes Interplanetary File System (IPFS) for backend storage. There is no default encryption when storing files and file storage as a complete unit on a single IPFS backend node.

For Storj, the network encrypts the file and breaks the file into pieces before uploading. Many nodes contain components of one file, meaning that different nodes have encrypted components of the file. Therefore, it achieves a greater deal of decentralization.

Storj is also significantly smaller than Filecoin. The latter is in a better position in the decentralized storage landscape. This situation could be because of the popularity of the IPFS, which has a solid track record and significant partnerships to provide business.

In all, decentralization continues to prove its utility across many sectors. The rise of decentralized cloud storage solutions like Storj and Filecoin demonstrates that the blockchain has more utility than just cryptocurrencies.

Decentralized cloud storage providers are disrupting the data storage business and may prove to be the storage standard in the long term thanks to their security, reliability, and built-in privacy. Currently, Filecoin and Storj are at the frontier of this movement, and it will be fascinating to witness their future growth.

Leave a Reply

Your email address will not be published.

Related Articles
Read More

The NFT Ticket Industry Will Be Huge – Here's Why

What started as a motley experiment to create a market for digital art on the blockchain, became one of the biggest success stories in blockchain evolution. It also expanded the importance of smart contracts and proves that any industry can be disrupted. Although many critics...
Read More

Jack Dorsey – The Controversial Man Behind Twitter And Square

With this move, Silicon Valley is losing one of its most eccentric entrepreneurs. Given the fact that Silicon Valley can easily be described as “weird” even on its best day, this is certainly saying something. Indeed, Silicon Valley has companies whose CEOs can be described...