Storj, a cloud-storage company, announced on March 23 that it will soon stop using the Counterparty platform and move to Ethereum. After a few months of discussion and evaluation between the Storj team and the user community, Storj's CEO Shawn Wilkinson communicated the decision through the company's official blog. The discussions and evaluations concluded that there was dissatisfaction with the operation and utility of the Counterparty platform, which is a protocol based on the Bitcoin blockchain that offers several financial instruments in a totally decentralized way. The blog post details the specific reasons that lead Wilkinson to make the decision.
First, Counterparty's portfolio has not had updates in two years and is difficult for inexperienced users to use; Secondly, the communique states that there were problems with "multi-signature" transactions, causing the inability of access to the tokens of the platform; Also, since Counterparty uses Bitcoin's blockchain for transactions, and this has had problems recently, users have experienced delays and long waiting times with transactions, delaying up to hours and days.
Another quite important reason is that because Counterparty transactions are heavier than the normal ones of Bitcoin, rates and fees are highly expensive to transfer. Additionally, Storj is not sure that the ecosystem of Counterparty can support a robust micropayment network, since these networks require a "wide adoption to be effective and safe", and in relation to this last reason, it is emphasized that the ecosystem of Counterparty Is very small, and that Storj, after completing its test phase, has had to fund its protocol updates for its micropayment tools, which is not profitable.
Therefore, moving the platform seems the best option: migrating from Counterparty to the standard token "Ethereum ERC20", as these tokens, according to the note, have great support among the community and are related to projects such as Augur and Golem. Essentially, Storj thinks that the 1: 1 conversion of its native SJCX token to a new one: ERC20, based on Ethereum, would solve QoS problems and allow them to participate in a more active and strong development community.
The migration to the Ethereum platform would allow, among other things, new features to be added regularly and errors fixed quickly. Equally, as opposed to Counterparty, transactions in Ethereum are usually fast (seconds or minutes), rates are low, and the ERC20 offers immediate interoperability with a variety of tools; As well as that Storj, with the migration, could provide services with smart contracts.