DPRating
DPRating

Bluzelle/BLZ

  • Summary
  • Prospect
  • Overview
  • Project Fundamental
  • Team
  • Community and Popularity
  • Adjustable

Project Overview

TypeService protocolKeywordDatabase
TokenBLZToken TypeToken
Circulating Supply$24.5MMarket Cap ranking191
Volume of Trade (avg of the last 20 days)$0.69MVolume of Trade ranking272
Current Price vs DPC Index90d-29.31%Current Price vs Initial Offering Price6%

Background

Boosted by early fundraising hype and the launch of Binance, Bluzelle emerged as one of the most popular projects in late 2018.

Before starting Bluzelle in 2014, the Bluzelle team offered services for enterprise and financial institutions, such as a cross border payment systems based on Ripple developed for Temenos and Maybank, an insurance platform based on Ethereum developed for MSIG and AIA, and a shared KYC ledger based on Ethereum developed for HSBC, OCBC, and MUFG. The founder of Bluzelle, Pavel Bains, realized that decentralized database services were in huge demand in both traditional companies and the new blockchain market. More pain points and opportunities would occur as more infrastructure, public chains, and distributed applications became available in the blockchain space. These observations became the inspiration for Bluzelle. The company shifted, became a supplier of on-demand expandable database services, and started to develop their own decentralized database protocols. On August 2017, Bluzelle received funding from Japanese VC Global Brain, Korean VC hashed, British VC Kryptonite, and European VC True Global Ventures. The funding totaled 1.5 million dollars in the A-round. On March 2018, NEO Global Capital invested 1 million dollars into Bluzelle too.

People always mention IPFS when discussing Bluzelle. In fact, in contrast to what many might believe, Bluzelle and IPFS are complimentary projects rather than competing projects. IPFS is adapted for store files such as images, while Bluzelle focuses on private data. Database services and storage services are two different concepts, another reason why Bluzelle should not be directly compared with other storage blockchain projects. While database services are positioned for business applications, Bluzelle’s goal is most comparable to becoming the blockchain version of Oracle, offering prime solutions for search speed, safety, and scalability. The unique positioning of the project, along with hype for it since funding, further impressed investors.

DPRating released its first report on Bluzelle in April. It achieved high scores in both project fundamentals and team dimensions. Some of its milestones for April were delayed to June. The Lovelace version was released for testing to enterprises and individuals. On October 17th 2018, Bluzelle released their first usable product, Quadrant protocol, a database protocol developed with Quadrant. The next important milestone will be Bernoulli in Q4 2018.

According to the Github audit report, Bluzelle is not actively updating its code. The CTO of Bluzelle made clear in his blog that most of the code will not be open source due to the business nature of the project. In late October the team announced that the internally tested Lovelace code will be updated on Github in half a year’s time. As the project gradually becomes open source, DPRating will change the rating accordingly.

Prospect

Trend outlook

Bluzelle launched on Binance in February 2018. In spite of the bearish market it managed to go up 8 times its initial offering price, peaking above 0.6 dollars in the first day of trading. In the following months the token price fluctuated between 0.3 and 0.5 dollars. Between July and August the price slumped into the range of 0.1 to 0.2 dollars. Compared with many other tokens that have fallen well beneath their initial offering price, Bluzelle has managed to keep some profit since ICO.

Binance, Huobi, and Gate support Bluzelle and provide it with good liquidity. Over the last two quarters it has not been listed on more international exchanges. Since the lock-up plan for the team and institutional investors has not yet been revealed, investors have to be cautious for correction once the tokens are unlocked if the market trend hasn’t changed. In the short term, we cannot foresee any dramatic leaps in Bluzelle’s progress. Without any major positive news concerning project fundamentals, Bluzelle’s price is predicted to have a minor correction and follow the general trend, moving in a small range above ICO price.

In the long term, Bluzelle directly competes with traditional database service providers such as Oracle. If the Bernoulli version is launched on time, at the end of the year, Bluzelle will have to grab market share from the industry giants. As tough as the challenge is, investor concern should not be limited within what partnerships Bluzelle has made, but the actual product Bluzelle has, its security feature, efficiency, maintenance, and whether the blockchain alternative truly holds an edge over the market proven opponents.

Great challenges also mean great opportunities. Bluzelle, even with its token incentive mechanism, can also serve other non blockchain clients. If Bluzelle manages consistent profit, the project will evolve and continue sustainably in the long term.

Market cap outlook

Time SpanTrendMarket Cap ExpectationOverall Expectation
Short-termFollow the crypto market after minor 150-180Neutral
Long-termBLZ has the potential to rank in the top 100 if it releases new versions as planned90-110Positive

Rating Overview

Rating summary: B

• The development team is experienced. Advisors are influential and resourceful.

• Positioned as the database service provider in the blockchain world, Bluzelle has a clear vision and goal to bring innovative solutions to improve data retrieval speed, safety, and scalability.

• The clear position and listing on Huobi was a good start. PR is slowly picking up the pace, but Blz has not yet gained listing on more top tier exchanges.

Risk summary: Medium

• Lovelace was pushed back from April to June. After two and a half months of testing, it opened to the public and the fulfillment tracking risk was lowered.

• Due to the business nature of the project, most of the code will not be completely open source. On the DPRating code audit it ranked low for several months.

• No lock-up plan was disclosed for either the institutional investor or for the team.

A. Project Fundamental

Overview

Data deployment is a composite business. Besides storing data, there is also a demand for managing data. For now, most of the blockchain network hasn’t been combined with a professional database. The vision of Bluzelle is to connect the two by offering a customized, decentralized, and expandable data service. It targets developers in blockchain companies and small and medium-sized enterprises. In the network, the producer provides the resources of the network, a guaranteed fee (and its key) for the service, and an evaluation of the quality of service, while the consumers store data and search data.

Data storage is much more abstract than a file system. It’s tailored for certain use cases. The biggest challenge for Bluzelle is to improve the database retrieval performance. There are two types of storage management systems: file management system and database management system. The file system stores objects that are hierarchical and indexed—files like MP3, videos, and documents large in size. A database system pertains to structuralized metadata that can be queried, like DB, JSON, key, time series and other operable subjects for SQL. Databases are built for quick retrieval.

Therefore, Bluzelle does not compete with Filecoin, Storj, and Sia. It is in essence a database protocol combined with token incentives built upon blockchain technology. Bluzelle’s competition includes companies like Oracle and SQL Server. In the whitepaper, the author illustrates the advantages of a decentralized database over single system databases and cloud databases. Since the project is still in the design phase, it’s not the time to make an exact conclusion concerning its future success. In theory, the comparisons are as follow:

1. Filecoin, Storj, Sia, and Tieron are decentralized file systems. File management and database management are different; they don’t compete with each other, they build an ecosystem together.

2. BigchainDB is a decentralized database software, but its connection with blockchain is weak and it lacks safety and scalability.

Summary

Distributed file storage is achieved through randomly splitting files into pieces and distributing them to various nodes. The retrieval speed is low in theory. Retrieving individual elements within the files becomes even harder. With the technology evolving, distributed applications and data services are going to become increasingly connected. Bluzelle is innovative, storing in clusters of devices while ensuring high performance, high scalability, and reliability. Furthermore, Bluzelle supports complex data queries in terms of database operation. Its scheme is as innovative as its technology.

Conclusion

Bluzelle falls into the data solution provider category. Combining blockchain technology and database technology, Bluzelle has a clear vision of providing a fast and safe decentralized database service for dApps. Bluzelle expects to expand its use cases so that potential customers are not limited to blockchain developers but include other enterprises as well. However, after decades of refinement, SQL and ORACLE have become benchmarks for the industry with products adaptable to almost any existing software and industry. Established in 2014, Bluezelle is still in its infancy but one day it hopes to challenge the giants.

DimensionDetailsTotal PointsPoints
PositionDatabase service provider1513
Competitive advantagesFirst-mover advantage, innovative scheme54
NecessityStrong demand, Token mechanism is regular, 158

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B. Team

Overview

MembersOfficial introductionComment
Pavel BainsPavel co-founded Storypanda, a digital book platform that published critically acclaimed titles by DreamWorks, Warner Bros and more. Pavel held GM and CFO roles for video game studios.
Neeraj MurarkaNeeraj is an engineer and computer systems architect with over 20 years experience, having worked for Google, IBM, Hewlett Packard, Lufthansa and Thales Avionics. His projects included modified Android OS for retail markets, multicast UDP satellite-based systems, and design and development of secure and FFA-approved systems for Airbus and Boeing. Neeraj was the fourth employee of an acquired blockchain startup Zero Block.
Andrew MastracciAndrew Mastracci co-founded Pertino Networks in 2011 which built a distributed routing and switching fabric on public cloud infrastructure with simplified management system for network configuration and policy. It raised over $35M and was acquired by Cradlepoint Andrew holds a Bachelor of Engineering from the University of Victoria. Currently, he has two patents in the networking and security space with another six pending.
Nitin CunhaAs Director of Developer Relations he works with partners to align strategy and roadmap, stays in touch with our developer community through sponsoring/attending online/offline event.

On the official website there are seven team members listed. Pavel Bains, CEO of the team, has over 15 years experience in operations management and finance. He is also the founder of Storypanda (a digital book platform). CTO Neeraj Murarka is an engineer and computer systems architect with over 20 years experience, having worked for Google, IBM, Hewlett Packard, Lufthansa and Thales Avionics. He also served as principal engineer for Zynga, Digital Infinity Systems Inc, Hewlett-Packard, and Ditech Networks. He was also the chief software engineer of an acquired blockchain startup, Zero Block.

Director of product development Andrew Mastracci co-founded Pertino Networks in 2011, a company which built a distributed routing and switching fabric on public cloud infrastructure with simplified management systems for network configuration and policy. It raised over $35M when Andrew served in his director position.

AdvisorrsOfficial introduction
RogerFormer Founder and CEO of Webvisions
Lionello LunesuCo-Founder of Enuma Technologies
Michael EgorovFormer Linkedin Engineer, CTO of NuCypher
Brian LioCEO of Smith & Crown
Ryan FuggerOriginal Creator of Ripple
Alex LeveringtonCore Ethereum Developer
Prashant MalikEx-Facebook. Co-Creator of Apache Cassandra

Institutional investors include Global Brain, Sure Global Ventures, and NGC.

Summary

The Bluzelle team was first established in 2014 with the company officially founded in 2016. According to the AMA and the road show in China around July, Bluzelle didn’t have a clear position at first and was developing payment tools based on Ripple and KYC ledger based on Ethereum. Gradually the team engaged with different types of enterprises and acquired some extraordinary advisors including Database expert and founder of Cassandra Prashant Malik, early Ripple founder Ryan Fugger, and former core developer of Ethereum Alex Leverington etc.

Conclusion

According to all disclosed information, the Bluzelle team is experienced and resourceful. In addition, there were five new hires in the technology team in March and three new hires in the marketing team in Q2.

DimensionDetailsTotal PointsPoints
Executive TeamTeam profile highly matches the project’s field, rich software development experience, early blockchain adopter, worked on Ripple back in 20143025
Investors and advisorsInfluential, highly relative. Advisors can help the project improve54
Institution investorsNGC is one of the investors54

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C. Community and Popularity

Overview

The Google Trends Index has fluctuated significantly over the past three months, with a minimum of 0 and a maximum of 75+. In terms of WeChat index, Bluzelle is not included and the average value of the BLZ keyword is less than 1000.

The number of followers on Twitter is very high. Since April, the number of followers has increased by 5k to 35.2k, but the interaction rate is less than 1%. From the data comparison, Q2 and Q3 interactions have not been ideal. In terms of community, the Telegram group has 20,000+ followers, daily message about 100~120.

In conjunction with the release of the database product Lovelace, the PR activities in July and August have been strengthened. Additionally, the hackathon launched in September is mainly for developers.

Summary

Bluzelle was most popular in Q1 2018 when it was crowd funded and got listed on Binance. It’s worth mentioning that when we first rated Bluzelle in April the number of followers was high but the interactivity level within the community was considerably low, leading some users to suspect the importing of fake users in the beginning.

Conclusion

The community for most technical projects usually starts growing within a small group of developers before gradually expanding to a more diversified group. Bluzelle was the opposite. Its unique position and listing on famous exchanges received a lot of attention. In the future, its popularity will have to be supported by more liquidity on additional top tier exchanges as well as their achieving milestones and making partnerships.

DimensionDetailsTotal PointsPoints
Social Media and Search TrendsHigh in social media medium in search popularity. Interactivity level is low 52
CommunityGOT community has attracted lots of attention. Interactivity level is low104
PR EventsChinese community was established in Q2, PR is improving51

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D. Adjustables

Overview

This dimension is based on analysis of Github audit and current progress.

TimeMilestonesStatus
1/17/12Single-swarm NoSQL key-value pair RAFT consensus storage facilityDone
1/18/06Release viable product LovelaceOriginally planned to finish in April, delayed to June
2018年Q3Test and run LovelaceDone
10/17/18Release the first use case with QuadrantDone
2018年Q4Launch BernoulliAccording to the official, around 50% of Bernoulli is completed.
SPV Wallet Support、Android WalletProposed at 2018 Q1Ongoing
Decentralized ExchangeProposed June 2018Raised to be a Politeia proposal. Specific development progress is unknown

Compared to the original roadmap, Lovelace was delayed from April to June. After two months of testing Lovelace has implemented all the designed features and is already available to public.

In Q4, Bluzelle will shift their main focus to the key node Bernoulli. According to the announcements Bernoulli’s completion rate is already beyond 50% and includes some features such as PBFT and user permission. Lovelace code will be updated to Github in late October.

As far as code goes, the CTO of Bluzelle made clear in his blog that due to the business nature of the project most of the code will not be open source. Judging from the DPRating Github audit, Bluzelle hasn’t been very active in June, July, and August, ranking around 150th on the list.

Summary

According to the latest road map released on August 12th, the development team is focused on Bluzelle DB right now. In the model it is categorized as being in the “Test phase before key nodes” stage of completion. The progress seems steady but the code shipping is slow. DPRating will reassess the points in this dimension after further inquiry into the open source code of Lovelace, posting risk warnings accordingly if necessary.

Conclusion

Quadrant elicited little excitement from the community. This is firstly due to the cooled down crypto market and, secondly, the high barrier for users. The documentation, demo video, and Regular APIs show an inclination for more sophisticated users. For regular investors, the open source progress and token price are more important.

DimensionDetailsTotal PointsPoints
Fulfillment trackingProgress mirrors the roadmap, steady development in Q421
Github AuditNot open sourced, ranked low in DPRating Github report.3N/A
ProgressTesting before the key node launch in Q453

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4

Rating Metrics

First dimensionSecond dimensionThird dimensionDetailsJudgementPoints
ProjectPosition 15%Position 15%Solution providerDatabase service provider13
Competitive advantages 5%First mover 2%YesFirst-mover advantage, innovative scheme2
Innovative 3%Very Innovative2
Necessity 15%Is it Pain point 5% Strong demandStrong demand, Token mechanism is regular, 4
Token incentive 10%Has token incentive mechanism4
TeamExecutive Team 30%Team profile and project matchMatch level is relatively highTeam profile highly matches the project’s field, rich software development experience, early blockchain adopter, worked on Ripple back in 20148
Software development experience 10%Led a software project8
Operation expertience 5%Very experienced, has led a team before5
Other industry resources 5%Resourceful4
Investors and advisors 5%Level of influence 3%Very influentialInfluential, highly relative. Advisors can help the project improve2
Relativity 2%Very relative, can provide important insights and resource2
Institution investors 5%Institution investors 5%One top tier institutional investorNGC is one of the investors4
Community and popularitySocial Media and Search Trends 5%Popularity 1%HighHigh in social media medium in search popularity.
Interactivity level is low
1
Interactivity 2%Low0
Search popularity 2%Medium1
Community 10%Popularity 3%HighGOT community has attracted lots of attention. Interactivity level is low3
Interactivity 7%Low1
PR Events 5%PR Events 5%Few PR eventsChinese community was established in Q2, PR is improving1
AdjustablesFulfillment tracking 2%Fulfillment tracking 2%On scheduleProgress mirrors the roadmap, steady development in Q41
Github Audit 3%Github Audit 3%N/ANot open sourced, ranked low in DPRating Github report.N/A
Progress 5%Progress 5%Has a testnetTesting before the key node launch in Q43
TotalTotal70.34
RatingRatingB

Risk Metrics

First dimensionSecond dimensionThird dimensionDetailsPoints
TransparencyBasic informationWhitepaperHas whitepaper1
Social media and communication channelsHas many communication channels including Youtube, forum, reddit, developers community etc.2
GithubOpen source2
Core teamTeam’s recordsVerifiable and very detailed (through LInkedin, ITJUZI or other channels)1
Full-time or part-timeAll employees are full-time1
Operation timeMore than 1 year2
Has an physical entity?Yes1
Change of teamHas expanded the team1
AuthenticityTeam members’ experienceTeam members’ experienceInformation is authentic1
Industry resourcesIndustry resourcesIndustry resource is authentic1
PopularityPopularityAuthentic popularity1
Marketing and PRMarketing and PRNo exaggeration in Marketing and PR0
Fundraising and complianceFundraising roundsRatio of price in each roundRatio is reasonable1
Ratio of the total funding in each roundRatio is reasonable1
Lock-up Team lock-upNo lock-up
-2
Investor lock-upNo lock-up

-1
Budget disclosureBudget disclosureNo budget disclosure

-1
Additional issuanceBudget is disclosed and detailed1
Fund supervisionAdditional issuanceAdditional issuance within a reasonable range1
ComplianceFund supervisionNo fund supervision
0
PolicyUnlikely to be regulated1
AdjustableEstimated market capKYCNo KYC
0
Estimated Market capAdequate0
Total15
RatingMedium

Rating Description

Rating Time:
22 Oct 2018
Project Source:
DPRating rating team actively selects and makes a rating
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Qualification

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Contact

Details

Token Symbol
BLZ
Crowdfunding Price
0.12 USD
Total Supply
500000000
Circulation Supply
192574042
Crowdfunding Start Time
18 Jan, 2018
Crowdfunding End Time
18 Oct, 2018
Exchange
Binance,Huobi,Gate.io,FCoin,CEX.IO
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Qualification Rating
Risk Rating
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