7.0
Score

Product
7.2
Market
7.2
Use of Blockchain
5
Whitepaper
6.8
Roadmap
7.2
Business Model
6.8
Team
8.4
Token Sale
7

Final Verdict

Website: Bluzelle.com
Twitter: BluzelleHQ
Telegram: Bluzelle

Symbol: BLZ / BNT
Hardcap: 19.5M USD
Max Token Supply: 500m BLZ

Update: Jan.2018: Changed Use of Blockchain Rating.
Update 24.12.2017: Token Sale Date and Period
January 18 starting at 10 AM SGT (2 AM UTC). It will run for fifteen days, ending on February 2 9:59 AM SGT (1:59 AM UTC).

Registration and KYC Period
January 4, 10 AM SGT (2 AM UTC) to January 11, 9:59 AM SGT (1:59 AM UTC). On January 2 bluezelle will provide specific details on how to go through the full registration.

Bluzelle is a decentralized service focused on scalable on-demand databases. Bluzelle is said to be safer and cheaper, as well as more scalable and more user-friendly than conventional databases. Users are rewarded for providing resources and thereby creating a joint decentralized network.

Problem

The rapid growth of the blockchain-industry carries a large number of decentralized applications (dApps) with it, which continuously exchange data. This data needs to be managed and backed up.  But blockchains like the Ethereum-blockchain are unsuited for this, since data on a blockchain is indelible without the consent of the entire network. Lack of space in the decentralized blockchain, too, is stated as another reason for it’s unsuitability.

Solution

Bluzelle works with the so-called “swarm-technology” and compares itself to  Content Delivery Networks (CDNs). Similar to a CDN, data in the Bluzelle network is always available.

In this technology, a significant group of computers is called “swarm”. These work together to save or manage data. Single Computers can then leave or enter the swarm without significant impact on the network. Bluzelle can be called a meta-swarm, i.e. several swarms interacting with each other.

The technology behind this can be compared with that of torrents and seed. Bluzelle reduces latency by looking for the closest computers in a swarm and which draw data from computers containing the same datablocks (shards). These shards are drawn on in parallel which increases performance. Because of this it’s not necessary for the entirety of data to be present on all nodes.

Bluzelle offers services for two types of users:

  • Consumer: The consumer uses the Bluzelle database services which are especially interesting for developers. They use Bluzelle tokens to save and access their data.
  • Producer: The producer provides his resources and in return receives Bluzelle tokens. Some of the tokens have to be staked as a security. Bluzelle will try to create competition between producers. A better service is supposed to be able to demand a higher price.

Technology

Some of the technologies from the database-genre also implemented in Bluzelle:

Bluzelle’s Consensus Algorithm is different from that of a classical blockchain. According to Bluzelle those are unsuited for databases for several reasons:

  • Scalability: Since a blockchain always needs to have the whole chain present, it’s scalability is impaired.
  • Costs: Mining-costs are too high and not sustainable.
  • Time: Confirmations on the blockchain take too long. While working with a database even three seconds of waiting time are untenable.
  • Data storage: It’s nearly impossible to delete data on a blockchain. But due to current european law, data base entries need to be deletable irrevocably.

Team

Bluzelle convinces with seasoned members that are experienced in the financial sector as well as the programming sector.

CEO Pavel Bains has 15 years of experience in operational management, digital technology and in the financial sector. Additionally, he worked for Disney as a Financial Operations Consultant and is a co-founder of Storypanda.

CTO Neeraj Murarka  was already employed by large corporations such as Google, IBM, Hewlett-Packard and Lufthansa. On the side he is also active in politics.

Furthermore Bluzelle lists  Nitin Cunha as Senior Developer – who worked as Talent Manager for TEEMA Consulting Group for seven years and now is a blockchain enthusiast.

High grade advisors are no rarity for Bluzelle:

  • Prashant Malilk – Siemens, Microsoft, Facebook
  • Brian Fox – GNU bash shell, Wells Fargo
  • Gil Penchina – eBay, wikia.com
  • Alex Leverington – core Ethereum developer
  • Ryan Fugger – Creator of Ripple

Furthermore Bluzelle is also well-appointed in it’s accounting and law sectors:

  • Bryan Cave – legal adviser for Hong Kong and USA
  • OrionW – legal adviser for Singapore
  • PriceWaterHouseCooper – business management, business strategy, fiscal advice

Token

Two tokens can be found on the Bluzelle platform:

  • An ERC-20 external Token: BLZ
  • The Bluzelle Network Token: BNT

Ordinary ERC-20 tokens are too slow and too expensive for real-time-database-accounting. The BLZ token only exists to offer the ability to purchase BLZ tokens on Exchanges to users. BLZ and BNT tokes can always be interchanged on the Bluzelle platform.

Consumers only gain entrance to the Bluzelle Network as holders of BLZ tokens. These have to be bought at an Exchange and then sent to the Bluzelle token gateway. This smart contract then automatically awards the user BNT tokens.

Producers, on the other hand, can also send BNT tokens to the smart contract. They then receive BLZ tokens in their specified Ethereum Wallet.

Since the platform only works with tokens, and not with fiat currencies, the process is entirely dexentralized. Every user of the platform has to acquire an Ethereum Wallet and provide safety and secrecy to their private keys. The microtransactions between BLZ and BNT entail fees.

Two scenarios:

  • A user needs BNT tokens to use the service:
    • 100 BLZ are transferred to the smart contract.
    • 0,1 BLZ is sent to the Bluzelle Ethereum Wallet as a fee.
    • The User receives 99,9 BNT.
  • A user wants to convert BNT to BLZ:
    • BNT tokens are exchanged 1:1 to BLZ tokens.
    • 0,1 BLZ is sent to the Bluzelle Ethereum Wallet.
    • The user receives the rest of the tokens.
    • The rate of the fees is dynamic.

Users of the platform can earn tokens by providing resources. According to the user’s behaviour (networkspeed, resource capacity, uptime of nodes, decisions by the user, etc.) their so called “Karma Index” rises. The higher this index is, the more tokens are earned. Should a user provide several nodes, they also earn more.

Token-sale

  • Hardcap: 19,5 million US-Dollar (private and public sale)
  • Generated tokens: 500M BLZ Tokens
  • Private Pre-Sale conditions:
    • 20% Bonus: $200,000 – $500,000 Investment
    • 25% Bonus: $500,000 – $1,000,000 Investment
    • 30% Bonus: $1,000,000 – $2,000,000 Investment
    • Known pre-sale investors: Kenetic Capital, Kryptonite 1, Hashed
    • 33% of the hardcap have already been reached through the private pre-sale.
    • Bluzelle will not offer a public pre-sale.
  • Public ICO: End of January/beginning of February 2018 (Whitelisting already started on the 8th of December).

Vesting schedule for team and advisors not coded in the smart contract.

Sale Struktur

  • Pre- & Public Sale
  • Fund for future Sales
  • Development and Community Fund
  • Founders & Team
  • Seed Investors
  • Advisors, early investors & strategic partners

Use of Funds

  • Research & Development
  • Sales & Marketing
  • Network Costs
  • Operations
  • Accounting, Legal & Compliance

Bluzelle offers 33% of the generated tokens for sale. This is definitely on the low end of the scale. Commonly, about 50% are sold in pre- and public sale. The tokens for founders, team and seed investors have a blocking period of 4 years. This is highly unusual. A normal blocking period 1 or 2 years, ordinarily.

Conclusion

The team of Bluzelle has big ambitions. They have the means and the team to be successful. But the question arises if a token is strictly necessary. The blockchain is barely important. dApp developers are supposed to be the primary target, but this is probably due to their knowledge about cryptocurrencies.
Because at the moment the use of the platform is too complicated for “common” end users. Elaborately, BLZ tokens first have to be bought on Exchanges and then sent to the Bluzelle Gateway Smart Contract to finally use BNT tokens on the platform itself.
A lower entry threshold would certainly extend the potential group of users immensely.
As with several other ICOs lately CryptoGo is again left with the question: “Why does Bluzelle even need an ICO?”.

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