Counterparty and Storj Unveil Payment Channel Technology

Storj Coutnerparty Payment Channel Technology

Storj and Counterparty have partnered up to create an interesting new concept. The primary focus of this project is to add support for payments channels supporting the SJCX token. As a result, it will be possible to allow for “streaming” payments of SJCX in exchange for storage space on the Storj network.

Storj And Counterparty Payment Channel Technology

Bringing payment channel technology to the Counterparty network is quite a significant milestone for cryptocurrency. Using this particular technology within the Storj ecosystem opens up exciting opportunities. Cryptocurrency enthusiasts will know the Storj project as a decentralized take on cloud storage solutions. Users give up their unused hard disk space in exchange for receiving SJCX tokens.

This new project has been in the works for quite some time, as the Storj team developed an initial proof-of-concept to ensure the technology is compatible with Counterparty tokens. The SJCX token, which is the native “currency” of this decentralized cloud storage network, is issued over the Counterparty protocol.

For the time being, this payment channel technology allows for unidirectional payment channels. Counterparty and Storj users can stream SJCX payments – or other assets – to other users.The Counterparty team has laid out a plan to enable bidirectional micropayments for its assets quite some time ago, and this new payment technology will help them achieve that goal. What is even more exciting is how these payments are not subject to the 10-minute block time on the Bitcoin network, despite all transactions being settled on the Bitcoin blockchain.

The Storj team decided to dub this payment channel solution under the “picopayments” moniker. It took Counterparty lead developer Ruben de Vries roughly one month to make sure the code could be implemented into counterparty-lib. While the solution is not available to the public just yet, the final review and further testing will follow shortly.

Once this stage has been completed, there will be an extensive testing period on the Bitcoin testnet. This will allow both the Storj and Counterparty developers to gain valuable feedback before releasing the payment channel solution to the world. Official beta testing of this technology is scheduled for Q3 2016. It is possible Spells of Genesis may embrace this solution in the future as well.

A Very Powerful and Promising Technology

Some users may have heard the term payment channels before, as it is the same technology powering the Lightning Network. Moreover, this allows for nearly free Bitcoin micropayments which can be completed very quickly. The ultimate goal is to provide real-time payments, but it may take some time before that goal becomes a reality.

Anyone active in the cryptocurrency ecosystem is invited to help out with developing this new technology. A payment channels FAQ has been created, to find out more information about this project. The Counterparty and Storj teams are available for help and suggestions through their respective Slack channels.

Source: News Tip Via Email

Header image courtesy of Storj

Exit mobile version