on the crypto
Since the launch of Ethereum in 2014, the ERC20 token has become by far the most used standard token. According to Etherscan, there are currently over 250.000 different token contracts on the Ethereum blockchain - quotation.
Furthermore, the availability of decentralized exchange services such as Uniswap means that ERC20 tokens are much more liquid than tokens coined on any other blockchain. Although not widely publicized, Bluzelle is a project that has devised a way to access this liquidity related to ERC20 tokens.
At the same time, Bluzelle also maintains its own network token, used exclusively to access its network, without having to give in to Ethereum's scalability issues.
Decentralized data storage
Bluzelle is a decentralized data storage solution intended for dApp developers. Although most people think that dApps are decentralized, in reality most components of a dApp are centralized.
Most dApps only store asset ownership data on a blockchain, while the rest is stored off-chain. Typically, developers use centralized cloud service providers such as AWS for this feature.
By taking advantage of the decentralized nature of the blockchain, Bluzelle overcomes this challenge by inviting validators on its network to provide storage space in exchange for the token payment. The structure of the validator ensures that every single data is stored in a subnet of 13 or more validator nodes.
Each of these is known as a database zone. If a node goes offline, the data is still available through one of the other nodes. All nodes are also synchronized with a consensus mechanism, which means that the database can only accept changes if a two-thirds majority of the nodes agree.
How the double token comes into play
The dual token mechanism powers the network architecture described above. The network works on the basis of the native Bluzelle token, called BNT. This token is the one used by network validators for the staking.
BLZ is the second token, an ERC20 asset that can be included in any Ethereum exchange or token exchange service such as Uniswap, Kyber or IDEX. It is also available for trading on major centralized markets such as Binance and Huobi.
The limits of Ethereum
Ethereum's speed makes it impractical for Bluzelle to use the BLZ token on its network. Each transaction should be validated on Ethereum, which means that Bluzelle could not operate faster than the Ethereum blockchain.
Ethereum currently performs around nine transactions per second and reaches a maximum of around 15.However, Ethereum has the largest user base and development activity of any other blockchain with over 2.800 dApps compared to 323 on EOS, the closest competitor .
Therefore, Bluzelle recognized Ethereum's potential as a bridge, but without accepting any of the speed and scalability limitations provided with applications running on the platform.
