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How I Lost 10354 SJCX in Coinbase!

Everyone does dumb things in there lives. Last month i did something that ranked pretty high in the dumb list..I hold a some digital assets and one of my baskets of assets was 10354 SJCX . At todays prices that would be about £800. SJCX for those that dont know is a digital token on the StorJ Network. Storj is a decentralised cloud storage solutions built on Blockchain technology. Earlier this year when i heard about the project i wanted to test the application. However to be part of the test group you had to hold 10000 SJCX which at the time was relatively cheap at only about £100.. i thought what the hell 😉

I had these coins sat in the wallet for ages… they had gone up in value over the months i had them….and in the end they became worth about £800…Which is a 8X increase pretty good gains i thought. I dont know why , i thought to myself what would happen if i tried to transfer the SJCX into my Coinbase wallet.  After all a Storj Wallet is a extension of a bitcoin wallet… I also thought that id be able to transfer them oout if anything went wrong since coinbase have a good support team.

Without really thinking what i was doing i went and transfered ALL the SCJX to a coinbase wallet i own 1Cr563rzct219VZL1sHoVSNGNuMU128swE. Only when i went and opened my coinbase wallet i had a horrible feeling i messed up bad.

Once i had realised what i had done i rushed to email coinbase support to see if they could assist me somehow..this was the response i got from coinbase.

JUN 23, 2016  |  04:21PM PDT
Robert Reid replied:

Hello,

Unfortunately, it’s not that easy. Our keys are locked up in our own secure key storage system. This system is only able to sign Bitcoin transactions and can’t do anything else. We tied our hands on purpose with respect to these private keys. So it’s really hard for us to sign non-Bitcoin transactions. Obviously, it’s possible, but it requires a ton of engineering effort to code up, test, and deploy a solution. And it is not worth it for us to do this for the small amount of money people lost to this.

We have had many people that have sent altcoins to our Bitcoin address, and we were not able to help them retrieve them.

I am sorry for any inconvenience this caused and for misunderstanding your initial question.

Regards,

 
Robert Reid
Customer Support Agent
Coinbase

 

 

It may be the case that the SCJX is suck in Coinbase forever or maybe oneday a coinbase engineer with the private keys will scope up my lost SCJX. So the lesson learn from this experience is not to sent Altcoins like Storjx to Coinbase or you will lose them FOREVER.

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Earn money by sharing your hard drive space with Storj

SInce the arrival of bitcoin there has been an explosion in blockchain applications. One that has caught my interest is Storj. Storj is based on blockchain technology and peer-to-peer protocols to provide the most secure, private and efficient cloud storage. There is decentralised cloud storage applications already in exsistence but Storj is the first blockchain based application to pop up.

Storj is really made up of 2 applications. Driveshare is the app where you share your extra hard drive space and in turn earn a few tokens from the Storj network SJCX ( StorjCoinX). The second app Metadisk. Using MetaDisk, you can upload your data to the Storj network with a simple drag and drop.Your files are protected and encrypted on your computer before they go into the network and only you, with your private key, have access to your data.You can even earn cloud storage on MetaDisk by sharing your hard drive space with DriveShare.

Currently Storj is in Beta testing phase. However you can take part in the beta testing ,if you hold 10000 SJCX you will be eligable for free SJCX rewards being dished out to participents.  I joined the Beta testing group in january 2016 and brought 10,000 SJCX out of my own pocket which at the time cost me about $140. At current prices 10000 SJCX is about $500 which personally is a high barrier for entry for most wanting to participate.

Storjcoin X (SJCX) is a digital currency that runs on the Counterparty and Bitcoin protocol. Only 500 million will ever exist. Earn it by renting out your excess hard drive space with DriveShare, or use it to purchase space on the Storj network with Metadisk.

To get hold of your own SJCX is pretty straight forward……….

  1. Create your SJCX wallet on Counterwallet.
  2. Convert Bitcoins to SJCX on ShapeShift.
  3. Paste your wallet address in DriveShare.

 

From doing some research i have found the payment formula for the rewards in this beta test.

Current formula that is used to calculate sjcx rewards.

  • For each farmer/build (authentication address) who has a sjcx balance equal to or above 10,000 in their payout_address, calculate his/her points.
    • points = f(u) * g(h) * (duration/payment_period)
      • u = uptime percentage (between 0 and 1)
      • h = height / max_height (max height is 199,999 for Test Group B)
      • f(x) is a logistic regression function
      • g(x) = 0.01 + 0.99 * x
    • If the build has a payout address with a balance below 10,000 sjcx and the payout address is on the whitelist, multiply their points value by balance / 10,000. Builds with balances below 10,000 sjcx and not on the whitelist get zero points.
  • Find the sum of the calculated points for all of the farmers.
  • Divide each farmer’s points by the sum in order to get the percentage of rewards that the farmer should receive. Multiply that percentage by the total rewards pool.

 

At the moment im donating only 500gb of diskspace…basically i had a spare hard drive just sitting about so i thought id plug it in and do something helpful for the Storj project. I have another spare desktop just collecting dust. Im going to buy a couple of 6 TB hard drives and run my own storage server for the Storj Network in the future. Im sure it wont make loads of money but it be interesting to see if i can turn it into a small storage farm.