Since Ethereum’s launch in 2014, the ERC20 token has develop into far and away the most-used token commonplace. Based on Etherscan, there are presently over 250,000 totally different token contracts on the Ethereum blockchain. Moreover, the supply of decentralized exchange companies similar to Uniswap signifies that ERC20 tokens are way more liquid than tokens minted on every other blockchain.
Though it’s not been extensively publicized, Bluzelle is a venture that’s devised a technique to entry this liquidity inherent to ERC20 tokens. On the similar time, Bluzelle additionally maintains its personal community token, used completely to entry its community, with out having to yield to Ethereum’s unending scalability woes.
Decentralized knowledge storage
Bluzelle is a decentralized knowledge storage answer focused at dApp builders. Whereas most individuals suppose that dApps are decentralized, the truth is that the majority parts of a dApp are literally centralized. Storing all dApp knowledge on a blockchain is pointless, costly, and would rapidly choke the community.
So, most dApps solely retailer the asset possession knowledge on a blockchain, whereas the remaining is saved off-chain. Sometimes, builders will use centralized cloud service suppliers similar to AWS for this.
Leveraging the decentralized nature of blockchain, Bluzelle overcomes this problem by inviting validators on its community to offer cupboard space in exchange for fee in tokens. Any developer can merely hire the cupboard space they want for his or her dApp.
The validator construction means that anyone piece of knowledge is saved in a sub-network of 13 or extra validator nodes. Every of those is called a database zone, with all zones frequently syncing collectively. If any node goes offline, the info continues to be obtainable by way of one of many different nodes.
All nodes are additionally synced with a consensus engine, that means that the database can solely settle for modifications if a supermajority of two-thirds of nodes agrees. Which means knowledge saved on Bluzelle is tamper-proof and censorship-resistant, in line with the staff. The database zones allow any person to scale their knowledge storage up or down as wanted.
How the Twin Token Comes into Play
The twin token mechanism powers the community structure described above. The community operates based mostly on the native Bluzelle token, known as BNT. This token pays for reads and writes on the database. It’s additionally the token utilized by community validators for staking.
BLZ is the second token, an ERC20 asset that may be listed on any Ethereum exchange or token swap service similar to Uniswap, Kyber, or IDEX. It’s additionally obtainable for buying and selling on main centralized exchanges similar to Binance and Huobi.
Let’s say a dev desires to hire storage on Bluzelle. They might purchase their BLZ tokens on an exchange within the traditional method. They then deposit their BLZ tokens into the Bluzelle platform in return for the equal BNT. With these BNT, they will purchase the storage they want.
Equally, somebody eager to develop into a community validator must buy an preliminary stake in BLZ and deposit these tokens to allow them to be transformed to BNT. They will then start staking and earn a share of the rental income that Bluzelle takes from customers.
After they need to withdraw their income or stake, they merely select an choice to convert their BNT again to BLZ, which they will then commerce as they need.
Leveraging Ethereum’s Limitations
Ethereum’s velocity makes it impractical for Bluzelle to make use of the BLZ token by itself community. Every transaction would should be validated on Ethereum, that means that Bluzelle couldn’t function any quicker than the Ethereum blockchain. Ethereum presently runs at roughly 9 transactions per second and maxes out round 15.
Nonetheless, Ethereum does have the biggest person base and probably the most improvement exercise of every other blockchain with over 2,800 dApps in comparison with 323 on EOS, the following nearest competitor. Due to this fact, Bluzelle has acknowledged the potential for Ethereum for use as a bridge, however with out accepting any of the constraints on velocity and scalability that comes with operating functions on the platform.
Ethereum’s lack of scalability has been a long-running drawback for the core improvement staff, however sadly, there’s nonetheless no concrete timeline for the much-anticipated ETH 2.zero replace. Bluzelle now seems to have discovered a technique to circumnavigate the problem.
Interoperability is now a essential focus space for blockchain builders. Due to this fact, it appears seemingly that extra initiatives will search to faucet into the thriving ERC20 token financial system and dApp ecosystem with out having to tolerate the sluggish speeds, congestion danger, and excessive gasoline prices of utilizing Ethereum as a base platform.