Case Study: StorageTokenIO

Alan Warms
Oct 24, 2018 · 3 min read

StorageTokenIO (fictional) has announced they are launching a project to provide inexpensive data storage by taking advantage of the vast amount of unused hard disk space in corporate and consumer devices. They are launching a new coin, called StorageToken, that will be earned by “miners” providing storage to the market. The company has developed complex algorithms to ensure redundancy of storage and a robust internal market for StorageToken in order to facilitate transactions of storage. All consumers of this service, i.e., those that seek to purchase storage, will use StorageToken to purchase storage. As a result there will be a robust set of USD-StorageToken exchanges to enable consumers of the service to purchase in dollars.

The Problem

StorageTokenIO requires thousands (if not tens of thousands) of market participants to be successful — both providers of storage and consumers of the storage devices. Each participant must use an on-device crypto wallet in order to transact with the StorageTokenIO system.

  • StorageTokenIO quickly realized that this new requirement of on-device crypto wallet adoption was an additional, significant, barrier to adoption on top of the usual challenge of new customer acquisition.

StorageTokenIO realized that requiring all participants to use on-device crypto wallets would be significant barrier to adoption and would make development of underlying system more insecure, complex and difficult.

The Solution

StorageTokenIO adopted ChainFront Cloud Service (CCS) to resolve these issues. Using the CCS, StorageTokenIO was able to make the use of crypto technology completely invisible to the entities, as well as algorithmically send high volumes of transactions. Entities will authorize with ChainFront via OAuth 2; entities will approve transactions via multi-factor authentication (MFA).

How it Works

  • As part of setup, StorageTokenIO worked with ChainFront to establish a set of security roles and rules for their market participants.

Impact

By using ChainFront, StorageTokenIO suppliers can fully participate in the asset tracking project without any exposure to private keys or digital wallets. On-device crypto barriers to adoption have been eliminated. StorageTokenIO did not have to spend cycles on a on-device wallet solution.


Originally published at ChainFront.

ChainFront

We opensourced ChainFront as of 9/2019: https://github.com/C

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