What currency is BZZ? Is it an air coin? In-depth analysis of the future value of BZZ currency

Speaking of the BZZ currency, I wonder how much investors know about this currency. According to the latest market data, as of 08:53 on November 17, 2021, the price of BZZ coin was US$3.2281, with an increase of +3% today, and the 24-hour transaction volume was US$21.6838 million. The current circulating market value of BZZ is US$132 million, the total supply of BZZ is 68.7076 million BZZ, and the current market circulation is 41.311 million BZZ. Currently, the more mainstream exchanges on the market that can trade BZZ coins include: OKEx, Gate.io, etc. Many investors want to know what currency BZZ is? Is it an air coin? Let the editor bring you an in-depth analysis of the future value of BZZ currency.

What currency is BZZ?

BZZ is a cryptocurrency on the Ethereum blockchain and is one of the tokens of at least two DeFi (decentralized finance) platforms, such as HoneySwap and Anchor Protocol.

BZZ coin is a decentralized storage computing hardware network Token launched by the Honeycomb team. It is issued based on the Ethereum protocol and is used to support various data transmission and computing tasks in the Honeycomb network. It is also an important part of the Honeycomb network. Currency standard.

To put it simply, the Honeycomb network is a decentralized cloud storage and computing platform. BZZ currency is the currency representative and can be used to pay for various services on the platform.

Background of BZZ

BZZ tokens are issued by a project team called Saffron Finance. Saffron is a decentralized financial protocol designed to provide users with decentralized interest earning and lending options.

Is BZZ coin an air coin?

BZZ coins are not air coins.

BZZ coin is related to Ethereum’s official storage project, a fact confirmed by the Ethereum London conference. This means that BZZ coin has a substantial application background, rather than just being an air coin based on hype or having no practical use. In addition, the design principles, underlying logic and practical applications of BZZ coin have been considered, and it aims to help Ethereum solve the congestion problem during the operation of smart contracts. The data distribution mechanism of BZZ coin is similar to IPFS. By dividing the data into blocks and storing and retrieving them according to the hash value, this not only ensures the speed, but also ensures the security of the data to a large extent. This design makes the BZZ coin technically have practical application value, rather than just a token with no practical use.

Although there is discussion about BZZ futures, it is pointed out that the real BZZ currency has not yet been launched, and there are trading restrictions. If the currency cannot be withdrawn, it can only be bought and sold on the exchange. This is described as a form of air currency. . However, this mainly refers to BZZ futures, not the actual BZZ coin itself. Therefore, questions about whether BZZ coins are air coins should be evaluated based on their actual application value and design principles, rather than discussions based on futures or tokens that have not been actually issued.

In-depth analysis of the future value of BZZ coins

In the early days when Swarm was proposed, IPFS had not yet come out, and Bittorrent was the most popular distributed file storage protocol on the Internet at that time. However, the obvious problem with Bittorrent is the lack of incentive mechanism, and users have insufficient motivation to share files for free. How to design a system to achieve stable, long-lasting, decentralized data storage and exchange? Blockchain just provides incentive ideas, and Swarm chooses to implement the incentive mechanism through smart contracts.

The Swarm incentive system is built around three important contract components: Swap (exchange), Swear (guarantee), and Swindle (fraud). Swarm is designed to provide decentralized and redundant storage for DApp code, user data, blockchain and state data, as well as the underlying structure for untraceable communication, with a built-in incentive system through smart contracts on the Ethereum blockchain. implementation. Ethereum developers can use Swarm to complete decentralized storage tasks of data, instead of directly relying on external ecosystems such as IPFS and Filecoin. Compared with Filecoin, the biggest difference between the two is the technical details and incentive mechanism. Filecoin does not penalize storage, while Swarm penalizes storage. The former leads to the proliferation of junk content because there is no storage penalty mechanism, while the latter improves file availability and security through storage penalties.

Swarm’s native token symbol is BZZ. BZZ is a functional token and is also used for bandwidth and storage rewards. The initial issuance of BZZ is 62.5 million (note: not necessarily the final total number of tokens).

As the "son" of Ethereum, Swarm not only has the support and brand effect of a star team, but more importantly, it has the unique advantage of integrating with the Ethereum ecosystem. Relying on the powerful network effect of Ethereum, if Swarm successfully attracts DApps within the Ethereum ecosystem to use its decentralized storage service, its development prospects are not difficult to imagine. At the same time, Swarm also attaches great importance to its ecological construction. It launched an ecological project funding plan in 2020 and currently funds 26 projects.

To sum up, this is the editor’s answer to the question of what kind of currency BZZ is. The editor here reminds investors that the BZZ coin project can be said to be the most promising distributed storage that will be the first to be implemented. Project, although the project is only on the Ethereum network, currently the project can achieve the function of distributed storage with the help of the Ethereum ecological network. In the short term, the project can only be implemented on the blockchain, but in the long term , the project will have a higher value.

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