Since Ethereum’s launch in 2014, the ERC20 token has change into far and away the most-used token customary. Based on Etherscan, there are presently over 250,000 completely different token contracts on the Ethereum blockchain. Moreover, the provision of decentralized alternate providers akin to Uniswap implies that ERC20 tokens are much more liquid than tokens minted on another blockchain.
Though it’s not been extensively publicized, Bluzelle is a challenge that’s devised a method 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 endless scalability woes.
Decentralized knowledge storage
Bluzelle is a decentralized knowledge storage answer focused at dApp builders. Whereas most individuals assume that dApps are decentralized, the truth is that almost all parts of a dApp are literally centralized. Storing all dApp knowledge on a blockchain is pointless, costly, and would shortly choke the community.
So, most dApps solely retailer the asset possession knowledge on a blockchain, whereas the remaining is saved off-chain. Usually, builders will use centralized cloud service suppliers akin to AWS for this.
Leveraging the decentralized nature of blockchain, Bluzelle overcomes this problem by inviting validators on its community to supply space for storing in alternate for cost in tokens. Any developer can merely hire the space for storing they want for his or her dApp.
The validator construction means that anybody piece of knowledge is saved in a sub-network of 13 or extra validator nodes. Every of those is named a database zone, with all zones frequently syncing collectively. If any node goes offline, the information continues to be accessible by way of one of many different nodes.
All nodes are additionally synced with a consensus engine, which means that the database can solely settle for modifications if a supermajority of two-thirds of nodes agrees. Because of this knowledge saved on Bluzelle is tamper-proof and censorship-resistant, in keeping with the group. 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 primarily based on the native Bluzelle token, referred to 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 alternate or token swap service akin to Uniswap, Kyber, or IDEX. It’s additionally accessible for buying and selling on main centralized exchanges akin to Binance and Huobi.
Let’s say a dev needs to hire storage on Bluzelle. They might purchase their BLZ tokens on an alternate within the ordinary approach. 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 desirous to change into a community validator must buy an preliminary stake in BLZ and deposit these tokens to allow them to be transformed to BNT. They’ll then start staking and earn a share of the rental earnings that Bluzelle takes from customers.
After they need to withdraw their earnings or stake, they merely select an choice to convert their BNT again to BLZ, which they will then commerce as they want.
Leveraging Ethereum’s Limitations
Ethereum’s pace makes it impractical for Bluzelle to make use of the BLZ token by itself community. Every transaction would should be validated on Ethereum, which means that Bluzelle couldn’t function any sooner than the Ethereum blockchain. Ethereum presently runs at approximately nine transactions per second and maxes out round 15.
Nevertheless, Ethereum does have the biggest person base and probably the most growth exercise of another blockchain with over 2,800 dApps in comparison with 323 on EOS, the following nearest competitor. Subsequently, Bluzelle has acknowledged the potential for Ethereum for use as a bridge, however with out accepting any of the restrictions on pace and scalability that comes with working functions on the platform.
Ethereum’s lack of scalability has been a long-running downside for the core growth group, however sadly, there’s nonetheless no concrete timeline for the much-anticipated ETH 2.zero replace. Bluzelle now seems to have discovered a method to circumnavigate the difficulty.
Interoperability is now a vital focus space for blockchain builders. Subsequently, it appears seemingly that extra tasks will search to faucet into the thriving ERC20 token financial system and dApp ecosystem with out having to tolerate the gradual speeds, congestion threat, and excessive fuel prices of utilizing Ethereum as a base platform.
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