Bluzelle (BLZ): The Cosmos-Based Blockchain for GameFi
Bluzelle is a decentralized network that’s transforming the way digital creations are stored on the blockchain. Its main goal is to provide users with the necessary tools, features and technical capacity to store and manage data without censorship. This detailed analysis of the project will help potential investors decide if they want to invest in BLZ, its native token.
What Is Bluzelle?
Bluzelle is a Cosmos-based blockchain for GameFi enthusiasts. Using a resourceful, decentralized storage network, Bluzelle lets the GameFi community develop quality blockchain games, store game NFTs and leverage DeFi yields.
With the success of blockchain-based games such as Axie Infinity and Kryptomon, it is evident that blockchain gaming could vastly outperform traditional gaming. As such, Bluzelle is looking to help the GameFi community in creating more of such high-quality games.
According to its official website, the project’s three main features are quality play-to-earn (P2E) games, decentralized storage and financial products related to GameFi.
History of Bluzelle
Bluzelle was started by Neeraj Murarka and Pavel Bains in 2014. The co-founders initially focused on developing DApps for banks. Ultimately, the team realized an urgent need for a decentralized storage system for DApp developers. The decentralized storage would allow GameFi participants to scale and store their data without the drawbacks associated with a centralized database. To meet the storage needs of decentralized apps, the Bluzelle blockchain relies on a system of participants who provide storage space to users. A user rents as much storage space as needed at a reasonable price. Since no central governing body regulates the mechanism, everything takes place in a decentralized environment.
Those who provide the storage are known as producers, and those who use the service are known as consumers. The innovative system of producers and consumers ensures that DApp developers can build GameFi apps without worrying about their storage needs. Likewise, gamers can store NFTs and manage their storage needs without the high cost associated with such tasks.
What Makes Bluzelle Unique?
While Bluzelle is not the only project offering this solution, it has quite a few unique characteristics. For instance, it's one of the few blockchains designed specifically for GameFi. It also offers decentralized web hosting on the Bluzelle testnet. Similarly, the technology is compatible with multiple blockchain platforms.
Other features that make it stand out among competitors are:
Fast and Low-Cost: Bluzelle is a powerful, 10,000 transactions per second (TPS) Cosmos-based blockchain, which is free from gatekeepers. Creators can control their intellectual property, while keeping digital assets secure and available.
Extremely Scalable: Theoretically, the network model can store unlimited data without depending on data centers. Users can scale database services instantly without constraint.
Dynamic Performance: Bluzelle improves the speed of the network and reduces request time by adjusting the location and number of nodes sharing.
Fault Tolerant: Performance is further enhanced with swarms — tiny pieces of data stored on groups of nodes — which are distributed across the globe. This distribution helps eliminate any single point of failure.
How Does Bluzelle Work?
The primary purpose of the Bluzelle blockchain is to provide scalable, safe and fast database services for the development of DApps. Game developers and GameFi participants will have the required capacity to store and use the massive amount of data needed to operate GameFi apps in a Web 3.0 environment.
While there are a variety of blockchain projects that offer general file storage, such database services don't address the needs of GameFi developers and players. Most of these services are centralized, unsecured and expensive.
To solve the riddle, the Bluzelle network relies on participants to rent out their redundant storage to developers and other users. In order to encourage participation, any participant who shares their storage is compensated with BLZ.
Producers and Karma
As mentioned, network participants who share their storage are known as producers, while those who use the storage are known as consumers. Whenever a consumer uploads data, it is stored across clusters of nodes spread across the globe. The storage space on multiple nodes prevents problems caused by network faults, human interference and natural calamities. Besides offering security, the configuration also makes data locally accessible to DApp developers, resulting in faster performance.
Since anyone can become a producer, the blockchain uses strict parameters to maintain reliability. For instance, if you want to rent your storage space, you’ll need to stake BLZ in proportion to the space you provide. As an internal token, BLZ helps run the Bluzelle crypto economy.
Staking BLZ serves as a guarantee to consumers that you intend to provide a reliable service. If the service is substandard, the consumer has the right to ask for a refund.
Bluzelle uses a Karma Index to analyze the performance of individual producers. A below-par service will reduce your Karma Index. In contrast, if your Karma Index is high, you can charge a higher storage fee consummate with your reputation.
It's worth noting that Bluzelle uses a dual-token system: BLZ and ERC-20 BLZ. The native token within the blockchain is BLZ. In contrast, the ERC-20 BLZ is an external token used for trading on exchanges. It's based on the ERC-20 concept, and you can buy it from any one of the crypto exchanges that offers it.
Features of Bluzelle
Bluzelle is designed for GameFi enthusiasts; and from a user perspective, the entire ecosystem revolves around GameFi. Here are some features to help you understand its utility.
To show the power of the Bluzelle storage protocol, the team launched its first game in November 2021. Denomination, which was rebranded Gamma 4 in March 2022, is a P2E card-battle game that reflects how the Bluzelle core combines the elements of gaming, tech, crypto and finance. It’s developed in collaboration with the world’s top blockchain-gaming studios, including professional game studio Starloop Studios. Ultimately, the goal of launching such games is to exhibit the power and usability of Bluzelle to a wider community.
Real-time gameplay consists of a four-stage game loop. You can battle others and play in tournaments. Winning battles will give you game currency and open additional options for players on the leaderboard. You can use BLZ to invest, stake, buy back and burn tokens, while your NFTs can be stored on the decentralized storage network, Bluzelle R2.
Bluzelle Net is a Cosmos-backed proof-of-stake ledger that can complete 10,000 transactions per second at a minimal cost to the user. The Bluzelle network is powered by Tendermint technology. This combination of Cosmos and Tendermint is particularly useful for database applications.
Bluzelle R2: Decentralized Storage
Bluzelle R2 is often dubbed a solution to the existing InterPlanetary File System (IPFS) protocol, currently used to store NFTs.
While IPFS is considered the gold standard, its lack of immutability is a concern. IPFS offers decentralization, but doesn't assure decentralized storage. In other words, an NFT sits on a single node that can go down without any option to recover it. This is where the R2 storage comes into play.
The Bluzelle R2 decentralized storage network is particularly useful for storing NFTs and related data. Amid the rise of R2, several NFT communities shifted their resources to decentralized storage. It's reliable because it stows data across multiple nodes around the world. In addition, the technology uses a consensus mechanism that ensures only you can update your data.
The Bluzelle project lets users aggregate DeFi projects in the Cosmos ecosystem. It recently partnered with leading Defi Aggregator Frontier to support staking on mobile platforms, using its native token. Users can lend, earn and stake a yield on blockchain game assets.
Similarly, Tidal Finance, a Balancer-like insurance market, allows users to create customizable insurance pools. In this setup, buyers retain their ability to transfer their insurance contracts via the tradable insurance tokens.
Over the years, the Bluzelle development team has partnered with many notable DeFi projects to expand their ecosystem. These partnerships include such notable names as Ankr, Equilibrium, Phala Network, Mintable.app, TomoChain and Genesis Shards.
Bluzelle’s staking economics are designed differently from those of other networks. Instead of receiving a fixed amount of rewards, users receive daily variable rewards based on existing market conditions. The unique staking mechanism is conceived to encourage loyalty, tenure and larger stakes.
There are two types of staking rewards: Network fees and incentive rewards. Rewards from network fees are shared among all participants according to their stakes in the network. Validators are also allowed to get a commission from delegators. You can see your rewards in the staking dashboard.
Incentive rewards encourage users to participate in the network at an early stage. Such rewards are distributed daily. You’ll not see these rewards in the dashboard. Instead, they show up directly on your available balance sheet.
At this time, the official website doesn't endorse a particular wallet. However, you can store BLZ on various third-party wallets, such as Ledger and Trezor. You can also store and stake the native token on the Frontier mobile wallet.
Pros of Using Bluzelle
As an all-inclusive GameFi ecosystem that offers lucrative game development and investing opportunities, Bluzelle makes sense as an investment opportunity. Here’s why:
Produce high-quality games: The GameFi ecosystem revolves around developing top-end blockchain games. Bluzelle has the resources and technology to succeed in this unique landscape. The team has already showcased its talent by developing and supporting games in collaboration with top-tier blockchain gaming studios. If things go according to plan, the blockchain will be a game changer in the GameFi sector.
Decentralized Storage for GameFi: Bluzelle’s distinctive framework offers a decentralized environment for the safe storage of NFTs. Additionally, gamers gain the ability to leverage DeFi yield protocols and earn passive income from their digital assets. This unique selling proposition and cross-chain operability make Bluzelle stand out among its peers.
Cons of Using Bluzelle
The team behind Bluzelle is actively trying to solve real-world problems; however, there are a couple of loopholes that require critical insight. Before investing, keep an eye on the following:
Lack of Clarity: The project is still under development. Since its initial launch, Bluzelle has transformed from a simple DApp solution to a decentralized database management solution for DApp developers. In 2020, the team switched focus and branded the product as a full-fledged blockchain for GameFi. While the transformation was nicely streamlined to achieve certain objectives, the road map requires more clarity.
Documentation: Investors will be hard-pressed to find a detailed description that can help them make an investment decision. The official website lacks a white paper. To do the research, you need to dig deep into the official blog.
Use Cases of Bluzelle
Bluzelle provides safe and secure data storage services. Quadrant Protocol is one of many organizations that have successfully used the BLZ blockchain to store its data on secure clusters. Using the blockchain, Quadrant can offer 100% decentralized data asset verification to its users without relying on traditional centralized sources and cloud solutions.
Bluzelle has a variety of other uses. For instance, it has partnered with Portal Network to offer user-friendly domain name and database operations to both tech and non-tech users. With Portal Network, users can buy a customized, human-readable domain name for their crypto wallet address. The resulting webpage can also interface with the Bluzelle database for CRUD operations.
Bluzelle Road Map
After the launch of the mainnet in early 2021, the team focused on three major tracks: Mainnet, Oracles and Polkadot. Here’s an overview of Blluzelle’s recent developments:
Mainnet: Several new features were added to the mainnet: Support for Stargate Cosmos, inter-blockchain connections with other chains, and docker support for quick setup of new nodes. As of mid-2022, the team is actively working on improving network governance and designing a proof of storage protocol.
Oracles: Bluzelle’s data oracles will showcase the power of its database, which is why the development team is giving the oracles their utmost attention. Due to the great demand for decentralized database storage, the team is striving to offer inter-blockchain support, as well as ensuring advanced security triggers, fast pricing intervals and high-quality price data. The team even employs a five-step data-cleaning process to make certain the prices given are the most fair and accurate at the time.
Polkadot: By the end of 2022, the team expects to achieve full interoperability with Polkadot. This requires designing a viable economic model of using DOT to pay for Bluzelle services.
There’s a total supply of 500 million BLZ. Almost 10% of the tokens are reserved for staking rewards. The initial coin offering (ICO) helped raise $19.5 million when it launched in January 2018.
Currently, there are approximately 340 million BLZ in circulation.
As mentioned above, the Bluzelle ecosystem uses a dual token system: ERC-20 BLZ and BLZ. The ERC-20 BLZ is an external token used for trading in exchanges, while BLZ is a native token within Bluzelle's own blockchain. Both tokens can be used to:
Pay for network transactions
Pay for Bluzelle DB and Oracle services
Stake and earn rewards
Participate in network governance
Where to Buy BLZ
You can buy BLZ from any of the popular crypto exchanges. Bybit is among the very few crypto exchanges that also offer BLZ as a perpetual contract. Perpetual contracts are similar to spot trades, but they offer traders an opportunity to hold a leveraged position. You can trade them as easily as traditional crypto without worrying about the expiration date.
Follow these guidelines to buy BLZ/USDT perpetual contracts on Bybit:
Step 1: Register your account on Bybit.
Step 2: To complete the transaction in BLZ/USDT, you’ll need to buy USDT before converting it to BLZ.
Step 3: Bybit offers a variety of ways to buy USDT, e.g., with your credit card. Depending on your location, Bybit may also offer deposit methods that include bank transfer, local third-party payment processing and Google Pay.
Step 4: Click on Buy Crypto to access your payment options.
Step 5: After completing the transaction, the USDT amount will show on your account.
Step 6: Now, access the Derivatives section from the top menu of the Bybit page. Select USDT Perpetual to access the trading platform.
Step 7: Click on Buy to purchase BLZ/USDT perpetual contracts.
Is Bluzelle a Good Investment?
It's logical to evaluate a cryptocurrency based on its utility, team, road map, major investors and community.
Bluzelle has a lot in its favor. Its founders have years of experience working in the gaming industry. Similarly, the project has extensive utility for GameFi apps and the related ecosystem. It has also forged strong partnerships with other companies.
Even with these advantages, there’s room for improvement. For instance, it's often difficult to find documentation, working papers and a road map for the project. The official website lacks pertinent information. Perhaps this is one of the main reasons why Bluzelle is still trying to attract a fervent following, despite the project's appeal to gaming enthusiasts.
Generally, Bluzelle is a good investment because it offers opportunities to investors who are willing to hold onto it long-term.
The Future of Bluzelle
Since 2019, the price and the market share of BLZ have increased significantly. Now it's up to the team to convince the GameFi community to support their project. Ultimately, the response from gamers and game developers will dictate the direction of Bluzelle in the coming months.
The Bottom Line
Bluzelle helps solve real-world problems that have hindered GameFi development. It's well-positioned to become a leader in the GameFi world. If you're thinking about investing in Bluzelle, it's wise to evaluate it from a long-term perspective. Successful marketing of the project, community development, and a streamlined road map are essential for its future development.