Bluzelle (BLZ) is a blockchain technology built to cash in on GameFi. GameFi combines the words game and finance.
To elaborate, GameFi is a catch-all phrase that covers any technology built to make money from gaming. For example, payments solutions built for gaming. Most GameFi solutions try to create a mechanism to generate revenue from gaming.
These solutions harvest the revenue, and use it for finance, or lending. For example, Play-to-Earn encourages gamers to participate in money-making activities and takes a percentage of the profits. Most, Play-to-Earn platforms try to use this money to finance activities such as game development.
GameFi is a growing market. The global GameFi market could grow from $9 billion in 2021 to $38 billion in 2028, Business Research Insights estimates. Business Research Insights claims will have GameFi a 27.13% Compound Annual Growth Rate (CAGR) between 2021 and 2028.
How Bluzelle (BLZ) tries to cash on GameFi
Bluzelle Chain (BLZ) is a high-capacity blockchain that supports fast transactions.
For example, they claim Bluzelle Chain can process 10,000 transactions per second (TPS). This means Bluzelle Chain solutions could serve 10,000 customers at once. GameFi solutions need such capacity because gamers want games that respond instantly. For example, gamers want to get weapons and other items they buy fast.
In contrast, Bitcoin (BTC) can only process seven TPS and Ethereum (ETH) can only process 15 to 20 TPS, Inery reports. In contrast Polkadot (DOT) processes 1,500 TPS.
Bluzelle can process up to 10,000 TPS because they can add blocks fast. They don’t say how fast Bluezelle adds blocks. However, they claim another 10,000 TPS blockchain, Inery, can add blocks in 0.5 seconds. In contrast, it takes Polkadot a minute to create a block, Ethereum six minutes to build a block, and Bitcoin takes an hour to create blocks.
Hence, Inery can add blocks fast enough to grow with the market. I imagine, Bluezelle has a similar growth rate.
Therefore, a Bitcoin GameFi solution could crash or freeze if it tries to serve eight customers. Similarly, an Ethereum (ETH) solution could crash or stall if tries to serve 21 customers. Obviously, a GameFi solution that can only serve eight or 21 gamers will not make money.
Bluzelle tries to help games and GameFi protocols by its R2 decentralized storage layer to other blockchains. Theoretically, R2 allows gaming protocols to move enormous amounts of data around fast on an extra layer with a higher capacity.
How Bluzelle (BLZ) monetizes games
Hence, Bluzelle adds a 10,000 TPS processing capability to existing blockchain games. Game designers need such a capacity to add potentially lucrative features such as NFT marketplaces to games.
To elaborate, such games need huge amounts of storage to store thousands of nonfungible tokens (NFTs). Many games make money by selling NFTs of weapons, characters, and paraphernalia.
Notably, Bluzelle connects games to Capella an NFT Marketplace built on the Cosmos blockchain. Capella runs on Bluzelle’s Layer 1 blockchain. Bluzelle connects games to Cosmos blockchains. Capella supports Bluzele’s first game GAMMA 4. Capella allows users to swap game tokens and assets in the Cosmos ecosystem.
The hope is that the NFT market will become a revenue source. Players will pay for NTFs with Bluzelle (BLZ) tokens. Speculators could make money by staking BLZ tokens and by providing funds for lending. For example, a platform could lend players money for NFT purchases.
What Infrastructure does Bluzelle offer?
Bluzelle’s infrastructure includes a validator network that serves as the platform’s backbone. Validators confirm transactions and verify data integrity. Bluzelle pays validators with Bluzelle (BLZ).
Another key piece of Bluzelle infrastructure is the Keplr crypto wallet. Keplr stores digital wallets and allows gamers to pay with BLZ.
Bluzelle’s block explorer monitors and analyzes blockchain activity. This provides a big data solution that could allow designers and Bluzelle to monetize game data.
They are building Bluzelle and Capella on the Cosmos blockchain. Cosmos is an effort to build a network of blockchains they call the Interchain. They claim Cosmos functions as an Inter-Blockchain Communication (IBC) protocol. This protocol allows apps to exchange data and assets between blockchains.
They claim Cosmos supported over 248 apps and services and had over $41 billion in assets under management on 22 August 2023.
What Value can Bluzelle (BLZ) achieve?
There is a strong interest in Bluzelle. For instance, Bluzelle (BLZ) was CoinMarketCap’s eighth most trending cryptocurrency on 22 August 2023.
Mr. Market, however, is only buying some of the Bluzelle hype. For instance, CoinMarketCap gave Bluzelle (BLZ) a 12.48₵ Coin Price, a $50.662 million Market Capitalization, a $92.989 million 24-Hour Market Volume, and a $62.382 million Fully Diluted Market Cap on 22 August 2023. They base those numbers on a 411.876 million BLZ Circulating Supply and a 500 million BLZ Total Supply. Bluzelle was CoinMarketCap’s 338th most trending cryptocurrency on 22 August 2023.
I think these prices are fair because Bluzelle has some money-making capacity. Presently, that capacity is theoretical because I see no evidence anybody is playing GAMMA 4. However, I think Bluzelle could make money if it supports a popular game or games.
Conversely, I think it will take years for GameFi to grow into a large market. Thus, it could take years for tokens such as Bluzelle to achieve any value.