What Is Swarm (BZZ)?
BZZ is the native token of Swarm, which is an Ethereum-based decentralized P2P data storage and communication network. The main aim of the Swarm crypto project is to become the operating system for Web 3.0 by providing a supply-chain economy of data.
If you’d like to see the live BZZ price, check out the Swarm price chart featured above.
Swarm is run by a network of nodes that provide users with leak-proof messaging and access to a distributed data network. Besides, Swarm is open-source, fault-tolerant, DDoS-resistant, and has no downtime.
Users have full custody over the data they store on Swarm. In addition to that, their data is private, as node operators are not aware of what kind of data they store. This is the case because the data is not stored in susceptible central hubs. Instead, it is divided into manageable chunks and dispersed throughout the whole Swarm network.
Though, apart from storing data and communicating, Swarm users can also build decentralized applications (dApps). The Swarm network provides developers with a fundamental framework for dApp creation by employing Single Owner Chunks and Postal Service.
The Purpose of BZZ Tokens
As mentioned before, BZZ is the native token of Swarm. Take a look at the Swarm price chart above if you want to see the current BZZ price.
Swarm tokens are primarily used as a payment method within the platform. This means that BZZ tokens are utilized to pay for bandwidth and data storage or for using any other Swarm service.
Besides that, the Swarm crypto project has an incorporated reward system, which is enforced through Ethereum-based smart contracts. BZZ is the token that powers this system. It rewards node operators for their work. The more bandwidth and storage they provide, the more rewards they receive.
Tokenomics of BZZ
There is no max supply set for BZZ tokens. However, Swarm tokens are neither inflationary nor deflationary, because their supply is controlled through a bonding curve on the Bzzaar exchange (created specifically for exchanging BZZ tokens).
Though the Bzzaar exchange is not like most traditional crypto exchanges because, rather than getting liquidity from market makers, it gets liquidity from a bonding curve.
What exactly is a bonding curve? In essence, it’s a mathematical function in the form of y=f(x). It defines the token price based on the existing tokens and the market supply.
With Bzzaar’s bonding curve, new tokens are only created when a user buys BZZ tokens. Then, whenever that user decides to sell these tokens back to the exchange, they immediately get burned. As a result, the price of the subsequent tokens rises when users purchase BZZ tokens, and the opposite happens when users sell BZZ tokens back to the exchange.
This makes Bzzaar an autonomously fluctuating exchange with an actively adjustable price.
Thus, if you want to buy Swarm coins, don’t forget to check the live BZZ price on the Swarm price chart featured above.
