Type Service protocol Keyword Database Token BLZ Token Type Token Circulating Supply $24.5M Market Cap ranking 191 Volume of Trade (avg of the last 20 days) $0.69M Volume of Trade ranking 272 Current Price vs DPC Index（90d） -29.31% Current Price vs Initial Offering Price 6%
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.
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.
Time Span Trend Market Cap Expectation Overall Expectation Short-term Follow the crypto market after minor 150-180 Neutral Long-term BLZ has the potential to rank in the top 100 if it releases new versions as planned 90-110 Positive
• 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.
• 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.
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.
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.
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.
|Position||Database service provider||15||13|
|Competitive advantages||First-mover advantage, innovative scheme||5||4|
|Necessity||Strong demand, Token mechanism is regular,||15||8|
Members Official introduction Comment Pavel Bains Pavel 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 Murarka Neeraj 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 Mastracci Andrew 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 Cunha As 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.
Advisorrs Official introduction Roger Former Founder and CEO of Webvisions Lionello Lunesu Co-Founder of Enuma Technologies Michael Egorov Former Linkedin Engineer, CTO of NuCypher Brian Lio CEO of Smith & Crown Ryan Fugger Original Creator of Ripple Alex Leverington Core Ethereum Developer Prashant Malik Ex-Facebook. Co-Creator of Apache Cassandra
Institutional investors include Global Brain, Sure Global Ventures, and NGC.
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.
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.
|Executive Team||Team profile highly matches the project’s field, rich software development experience, early blockchain adopter, worked on Ripple back in 2014||30||25|
|Investors and advisors||Influential, highly relative. Advisors can help the project improve||5||4|
|Institution investors||NGC is one of the investors||5||4|
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.
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.
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.
|Social Media and Search Trends||High in social media medium in search popularity. Interactivity level is low||5||2|
|Community||GOT community has attracted lots of attention. Interactivity level is low||10||4|
|PR Events||Chinese community was established in Q2, PR is improving||5||1|
This dimension is based on analysis of Github audit and current progress.
Time Milestones Status 1/17/12 Single-swarm NoSQL key-value pair RAFT consensus storage facility Done 1/18/06 Release viable product Lovelace Originally planned to finish in April, delayed to June 2018年Q3 Test and run Lovelace Done 10/17/18 Release the first use case with Quadrant Done 2018年Q4 Launch Bernoulli According to the official, around 50% of Bernoulli is completed. SPV Wallet Support、Android Wallet Proposed at 2018 Q1 Ongoing Decentralized Exchange Proposed June 2018 Raised 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.
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.
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.
|Fulfillment tracking||Progress mirrors the roadmap, steady development in Q4||2||1|
|Github Audit||Not open sourced, ranked low in DPRating Github report.||3||N/A|
|Progress||Testing before the key node launch in Q4||5||3|
|First dimension||Second dimension||Third dimension||Details||Judgement||Points|
|Project||Position 15%||Position 15%||Solution provider||Database service provider||13|
|Competitive advantages 5%||First mover 2%||Yes||First-mover advantage, innovative scheme||2|
|Innovative 3%||Very Innovative||2|
|Necessity 15%||Is it Pain point 5%||Strong demand||Strong demand, Token mechanism is regular,||4|
|Token incentive 10%||Has token incentive mechanism||4|
|Team||Executive Team 30%||Team profile and project match||Match level is relatively high||Team profile highly matches the project’s field, rich software development experience, early blockchain adopter, worked on Ripple back in 2014||8|
|Software development experience 10%||Led a software project||8|
|Operation expertience 5%||Very experienced, has led a team before||5|
|Other industry resources 5%||Resourceful||4|
|Investors and advisors 5%||Level of influence 3%||Very influential||Influential, highly relative. Advisors can help the project improve||2|
|Relativity 2%||Very relative, can provide important insights and resource||2|
|Institution investors 5%||Institution investors 5%||One top tier institutional investor||NGC is one of the investors||4|
|Community and popularity||Social Media and Search Trends 5%||Popularity 1%||High||High in social media medium in search popularity.
Interactivity level is low
|Search popularity 2%||Medium||1|
|Community 10%||Popularity 3%||High||GOT community has attracted lots of attention. Interactivity level is low||3|
|PR Events 5%||PR Events 5%||Few PR events||Chinese community was established in Q2, PR is improving||1|
|Adjustables||Fulfillment tracking 2%||Fulfillment tracking 2%||On schedule||Progress mirrors the roadmap, steady development in Q4||1|
|Github Audit 3%||Github Audit 3%||N/A||Not open sourced, ranked low in DPRating Github report.||N/A|
|Progress 5%||Progress 5%||Has a testnet||Testing before the key node launch in Q4||3|
|First dimension||Second dimension||Third dimension||Details||Points|
|Transparency||Basic information||Whitepaper||Has whitepaper||1|
|Social media and communication channels||Has many communication channels including Youtube, forum, reddit, developers community etc.||2|
|Core team||Team’s records||Verifiable and very detailed (through LInkedin, ITJUZI or other channels)||1|
|Full-time or part-time||All employees are full-time||1|
|Operation time||More than 1 year||2|
|Has an physical entity?||Yes||1|
|Change of team||Has expanded the team||1|
|Authenticity||Team members’ experience||Team members’ experience||Information is authentic||1|
|Industry resources||Industry resources||Industry resource is authentic||1|
|Marketing and PR||Marketing and PR||No exaggeration in Marketing and PR||0|
|Fundraising and compliance||Fundraising rounds||Ratio of price in each round||Ratio is reasonable||1|
|Ratio of the total funding in each round||Ratio is reasonable||1|
|Lock-up||Team lock-up||No lock-up
|Investor lock-up||No lock-up
|Budget disclosure||Budget disclosure||No budget disclosure
|Additional issuance||Budget is disclosed and detailed||1|
|Fund supervision||Additional issuance||Additional issuance within a reasonable range||1|
|Compliance||Fund supervision||No fund supervision
|Policy||Unlikely to be regulated||1|
|Adjustable||Estimated market cap||KYC||No KYC
|Estimated Market cap||Adequate||0|