Storj, the blockchain based decentralized cloud storage services provider has joined forces with Counterparty, a Bitcoin blockchain based smart contract tools provider to create a new payments channel technology. The technology developed by Storj is currently in the proof of concept stage and it will be used for enabling payments on the Counterparty network using Counterparty tokens.
Storj’s concept payments technology is built to support the new Lightning Network. Recently enabled on the Bitcoin Core, the Lightning Network is designed keeping Bitcoin network’s scalability in mind. The Lightning Network is an ideal solution to process repeated transactions between two parties without having to record each transaction on the bitcoin blockchain, thus reducing the miner fees and processing time.
Lightning Network is a layer over the primary Bitcoin protocol that allows two people to create a secure channel, kept open for a specific duration. As long as the channel is open, the parties can conduct unlimited instant transactions between each other. Irrespective of the number of transactions conducted between the participants, the network will create only two transaction records on the blockchain, one during the initiation of the payments channel and another upon termination of the channel.
The Storj’s payments technology