Storj Labs, a distributed cloud storage provider, has raised $3 million in a seed financing round to advance its open source, distributed cloud storage platform, Storj (pronounced ‘storage’).
Storj provides one of the first decentralized, end-to-end encrypted cloud storage solutions to use blockchain technology and cryptography to secure files. As an open source project, Storj unites a large and growing community of developers who are committed to building tools, applications and products that are private by design.
The offering was oversubscribed. Angel investors in the blockchain-based cloud storage platform include venture capitalists from Google Ventures, Qualcomm Ventures and Techstars, as well as security executives from Ionic Security, Cockroach Labs and Pindrop Security.
By creating a shared community of “farmers” (users who rent out their spare hard drive space and bandwidth), Storj would create a peer-to-peer network that is orders of magnitude more secure, up to 10x faster and 50 percent less expensive than traditional data center-based cloud storage solutions. A platform, cryptocurrency, and suite of decentralized applications, Storj allows users to store data in a secured and decentralized manner. It uses blockchain features like a transaction ledger, public/private key encryption, and cryptographic hash functions for security so that users don’t have to assume the risk of censorship or hacking as with data centers.
“Storj aims to revolutionize cloud storage by putting the user back in control over their devices and their data,” said Shawn Wilkinson, co-founder, CEO and CTO of Storj Labs. “The decentralized aspect of Storj means there are no central servers to be compromised, and because of the use of client-side encryption, only the end users have access to their unencrypted files and encryption keys.”
Today, Storj touts a community of more than 7,500 farmers and more than 15,000 API users worldwide. Storj Labs has cemented a channel partnership with Heroku, a cloud platform that enables developers to build, run, and operate applications entirely in the cloud. By joining forces with Heroku, Storj can provide developers with a distributed object storage solution with effortless encryption, optimal speed and easy implementation.