[Project Speech] Creating Decentralized Cloud Storage Systems, #John Quinn, STORJ LABS at KBW2019

[Music] everyone I know then the last presenter before your lunch so I'll be brief but this I think is one of the most important technological advances in the last ten years and it intersects very closely with cryptocurrency so I think you'll find it to be interesting a bit about my background I'm a former investment banker tech investment banker capital markets I also manage at 200 million dot or sorry a 20 million dollar crypto hedge fund called D Central Park so I'm very familiar with kind of token economics you can find me and follow me at a storage a queue on Twitter so many of you probably know the amount of data and the world is exploding currently we're about 44 zettabytes growing to 175 zettabyte so by 2025 according to IDC basically this is being grown by by content from you user-generated content so videos you and your friends and family selfies as well as ARV are 4k video things like that Internet of Things is also a big contributor of that so massive basically data is doubling every two years the way that data is being stored is also changing so you look at the public cloud and the private cloud they're gaining share against traditional data centers so you know again in the the market the pink section is about worth eighty billion dollars today as that increases market share to 2022 that's actually going to be a closer to 200 billion dollars so that's the market that AWS Google cloud Microsoft Azure and Ali cloud participate and currently Amazon's printing about ten billion dollars per quarter so it's a it's a huge market it's a growing market and that's really the last trend over the last 10 15 years since Amazon came and basically introduced the public cloud that's the way things have been moving but there's a problem we the cost of this is we live in a surveillance state so these are actual presentations that Edward Snowden disclosed regarding the the NSA and how they've co-opted the big cloud players is honey pots of information that are used to spy on and it's also not only government that's doing this there's very often there's hacks of basically these honey pots of data where all this data is in one place and then hackers come in and are able to steal your information causing great turmoil to people as well as to companies so part of what storage what we're seeking to do is basic clawback some privacy and security from what has been taken from us via the public cloud so if everything is moving to the cloud maybe we need a new kind of cloud one that's private by design and secure by default and that's the mission of storage so how it works it's pretty simple so well it's actually quite complicated but this slide is simple the there's basically a customer application that's basically loading data so we're a developer tools through an API then it basically signals are sent to our satellites where we basically say ok this is where the data is going to sit on our network via metadata and then the data is and then that's done via the uplink and then the actual data is sent from the customer directly to the storage node operators and storage is never a counterparty to the data so we cannot if we're hacked it doesn't matter because we don't hold the encryption keys the same way they you know bitcoin that the concept is your if you have your keys then you have your coins and with us it's you have your keys you have your data and we have no ability to access your data and quite frankly we have no idea of what is actually being stored on data we want to keep it exactly that way in case we get subpoenaed we can't provide anything other than that these users are uploading that data but we cannot even decipher the data because it's been encrypted into gobbly so how does it work what happens to the files the files are encrypted client-side so if you're loading data on to the network you're basically in secret you've destroyed it through encryption and then it's split into 80 chunks and those 80 chunks are then distributed directly to 80 nodes without touching storage so then you know the idea is that if it's been destroyed and distributed it becomes super or hard to hack into it because on the single file you have to get the encryption key to decrypt the file and then you have to figure out what 80 nodes across the 150,000 knows where these files actually sit and that's just for one file you have to repeat the same process for your second file much less you know if you have you're storing millions and millions of files like AWS Amazon Google Microsoft and then how does it work there's in cinema zation and sanitization through the storage token where people are basically providing storage capacity and they're providing bandwidth and the storage token is compensation for them to do so so raise your hand if you have ever stored anything using storage as a developer okay couple how about have you acted as part of the network as a storage node operator okay how many of you have taking the tokens that you've earned as a storage node operator and converted them into one using something like up it okay good so yeah so I mean we've been working here in Korea with Korea partners without bid for over four years but it basically this is how we collectively can pull back privacy and security and basically the storage token acts as the incentivization layer for everybody to contribute to the network and basically make the world a more secure and private place so our goal is to create the world's largest most secure resilient performant and economical cloud without owning or operating a data center so it's a really odd dish's goal we believe that it's very doable but I'm going to take a walk you through how we're gonna do it so we have some learnings we basically were able to scale our network to about a hundred and fifty thousand nodes over 180 countries storing about 150 petabytes which is a lot of data in version 2 of our network we also learned that what not to do and so we basically had to rewrite most most of our code base in order to be able to scale to the exabyte range and so the exabyte range is a thousand petabytes and two but just put it into perspective Amazon Google Microsoft are all measured in about 100 X bytes but these people all around the world have been getting compensated in storage tokens in order to provide access to their storage devices in their bandwidth and then they're liquidating these hoby on okx by Nance and napaloni acts and other exchanges in order to buy more equipment and then basically contribute to the network so and this has been kind of our proof of concept and what we're doing in version 3 you can expect us to add multiple zeros to the back of these numbers so our goal seems totally crazy but if you look at it it's really quite possible doable because there's so much late and supply out there if you look at Amazon Google Microsoft and Ollie cloud they represent maybe 1% of the total amount of data being stored globally so if we could take the rest of that the 43.5 Zeta bytes of data and bring that into an incentivized marketplace all of that data becomes de-facto you know in fact a private by design and secure by default that means that all of us will basically take back the privacy that's been taken from us by the large cloud providers and we think that make this is going to make the world a better place and it's gonna open the world for types of applications such that we don't every time you load a photo up to Facebook you know Mark Zuckerberg earns a dollar and you know he probably doesn't need to buy another island if we were all able to have our own keys and share our keys within an application for our own shared benefit maybe we could collect some of that value so we think this is just going to open up a multitude of new business models that are gonna be really impactful around the world so why are partners choice choosing storage it's really around the paradigm of durability security and performance so we're quite durable basically we've never lost a file we're at a hundred percent when Amazon launched they were four nines they're currently ten or eleven nines I believe so because of the architecture of our network and based on the amount of repair that's it's a self repairing system we may never lose a file the security as I mentioned earlier is endand encrypted so we never have you know basically access to your files and we never will and then on the performance or the performance has been fantastic from our engineering team and I'll take you through about a little bit more about that in detail but basically if you have a distributed system it just lends itself through parallel to be much faster but on the upload and the download so here they are some of the main metrics in terms of durablity retrieve ability upload download these things in greens are on par or better than AWS so what I'm telling you is that there's hundreds of thousands of devices all around the world collectively have better performance than the number one public cloud provider in the world and I like to give it up from our engineering team led by JT olio for delivering this because a lot of companies have failed and they've delivered on it so give it up for JT thank thank you he's been working really hard on it so we've also been validated by the world's largest open source projects so these companies we've already signed contracts with them these are twelve of the largest open source projects in the world they handle collectively about 75% of all the payloads around the world unfortunately they collect about 5% of the wallet the wallet is basically taken by Amazon Google Microsoft so what storage does is we enable them to basically build connectors with us they send us data and we give them recurring revenue into perpetuity and this base that creates a financially sustainable system with an open source which we think is really important versus proprietary software so we are offering them privacy security as well as sustainability and this is going to enable the storage project to massively hyper scale our attorney said I couldn't mention the names of the companies that this represents but I'm gonna give you a little teaser about some announcements that'll be coming soon so a top three consulting first of all we've gotten inbound inquiries from like multiply almost 10 fortune 100 companies we've had literally companies come and fill out our form that are basically so they're fill out the form for them to basically contact us which is just absurd considering the scale those businesses but the first one is a top 3 global consulting company that basically do operate a satellite to store government data and and on on-premise security the second is a mobile device data backup and sharing for my top three mobile handset manufacturer and the third is one of the largest storage device manufacturers that's basically going to be both the supply and a demand partner so these are massive massive companies that have reached out to us because what we're doing is quite unique so there's gonna be five numbers that change there's one number that stays the same and I'll ask you at the end of this slide which number didn't change so as our this is where we are today about three satellites about a million files stored about 44 percent 447 pieces of those files there's about a 13,000 developer wait list and 220 500 storage nodes so roll this forward you know 24 36 months there's gonna be hundreds of satellites there's going to be milli billions of files stored there's going to be trillions of file pieces and there's going to be millions of developers on the network operating millions of storage nodes and what is what did not change right so how many tokens are in Bitcoin who knows yeah and that never is going to change the same with the storage utility token so basically there's a native token that's basically creating the incentive layer for our entire network all these things scale that the number of tokens does not scale and so if you roll for the growth of our network going from one petabyte to one exabyte which is a thousand petabytes you can see that you know based on some of conservative assumptions we'll be paying about six million dollars a month in the storage tokens to our storage node operators this is in comparison the two million dollars we paid in storage tokens since the company's inception so as a network scales there's going to be a lot more demand for the token as we grow this ecosystem and in a way that is going to bring back privacy and security to our to our Internet so some of you are probably wondering if this is for real or not so what I'm going to do is do something called a proof of photo so I'm gonna take a selfie with you guys and basically you can come to the booth later and you can basically check it out did it work or not and this is this basic I'm gonna take a picture with all of you here a little little selfie and from that you guys can come by our booth and check out if the file actually downloaded so this is being encrypted sharded sent around 80 different nodes on a global basis and and and then only I can have access to it but you can stop by our booth and you can become part of web 3.0 because this is the underpinning of web 3.0 because once we have data that's decentralized and secure and private really opens up the world for everything else that web 3.0 is trying to achieve and with that visit our booth and join us on our journey to web 3.

0 and thank you very much thank you [Applause]