The Storj report also gave details on how the funds raised from the crowdsale would be used, including reimbursement for existing expenses, further development of Metadisk and DriveShare technologies, marketing costs and various legal expenses. As one of the first significant non-monetary applications of block chain technology, much rides on Storj’s success.
The decentralized, cloud-based data storage system allows users to essentially share storage space on each other’s machines, and uses bitcoin-like public/private key encryption to secure the data. Customers who contribute more storage to the network than they use can also be paid for contributing, most likely via the Storjcoin X altcoin.
Storj owes much to the Satoshi Nakamoto whitepaper that gave birth to bitcoin, but it also serves as a test of just how practical a block-chain based model can be for real-world software. It’s only fitting that the first major round of funding for Storj come from a bitcoin-powered crowdsale. If their first round of results is any indicator, there is plenty of demand for what Storj brings to the table.