What is Waves (WAVES)?

What is Waves (WAVES)

The Waves blockchain is designed to allow users to create and launch custom crypto tokens.

Waves allows the creation and trading of crypto-tokens without the need for extensive smart contract programming.

Instead, the Tokens can be created and managed through scripts that run on user accounts in the Waves blockchain.

The idea is that developing new tokens (and the apps that govern them) won't be substantially different from launching a traditional web app.

To achieve this goal, programs and applications run as attachments to these transactions, and new assets are given a unique identifier. Scripts can only be attached at asset creation.

These assets are designed to trade in the Waves ecosystem, which includes its own built-in decentralized exchange (Waves.Exchange), designed to facilitate trading between tokens created in the Waves blockchain with other WAVES tokens.

In 2018, the Waves team added smart contract functionality to Waves MainNet, allowing third parties to build decentralized applications (dapps).

Also, in 2019, the team behind the platform began marketing Waves Enterprise, a version of the network designed for institutions.

Who Created Waves?

What is Waves (WAVES)

The blockchain Waves was founded by entrepreneur Sasha Ivanov in 2016.

That's when Ivanov founded Waves Platform AG, a Moscow-based for-profit company whose aim was to drive and finance the creation of a new blockchain network.

The Waves team held an Initial Coin Offer (ICO) for its cryptocurrency WAVES in April 2016, raising the equivalent of $22 million (~30.000 BTC).

The blockchain Waves was released soon after, in the third quarter of 2016.

Why WAVES Have Value?

The WAVES cryptocurrency plays a key role in the maintenance and operation of the Waves Network.

WAVES is used to create custom tokens and pay transaction fees. Also, the supply of WAVES tokens is limited — there will only be 100 million WAVES.

Ownership of the WAVES cryptocurrency determines who can add new blocks to the Waves blockchain and who earns a share of the fees paid for transactions.

Any user who wants to become a full node will need a minimum balance of 1.000 WAVES. Waves allows users who don't have as many tokens to participate in mining by renting their nodes, but leasing costs 0,002 WAVES.

WAVES price

 

How Does Waves Work?

The Waves blockchain allows two different types of nodes to run your software: full nodes and lightweight nodes.

Full nodes maintain a complete transaction history, while lightweight nodes rely on full nodes for transaction confirmation and network interactions.

To keep your distributed network in sync, Waves uses a variation of the proof-of-stake (PoS) consensus mechanism called leased proof-of-stake (LPoS).

The Waves LPoS Blockchain

In a traditional proof-of-stake model, any node that chooses to block Tokens may be eligible to add blocks to the blockchain.

The chances of a node being able to add a block generally increase or decrease depending on the amount of coins a node has blocked in a special contract.

With LPoS, the About you also have the option of renting your balance to us in full.

This means that when a complete node is selected to produce the next block and is compensated, the nodes that rent tokens for that selected node earn a certain percentage of the payout.

Waves-NG

The protocol that determines which node will have the right to produce the next block is called Waves-NG, and is a modification of an idea initially proposed (but rejected) for Bitcoin (BTC).

Waves-NG divides the Waves blockchain into two types of blocks — "key blocks" and "micro-blocks". Key blocks are created by a randomly chosen proof-of-stake miner.

A public key in this block is then used by other nodes to create many microblocks that include transactions.

Smart Assets

Central to the Waves blockchain is the ability to create 'Smart Assets,' tokens with an attached script written in Ride, a programming language native to Waves.

Any token can receive functionality by attaching a script. The scripts cost 0,004 WAVES to run.

How Waves Allows Users to Broadcast Tokens without any programming experience, tokens and subsequent transfers are made as attachments added to transactions.

Different transaction types are introduced through plug-ins that are installed as extensions on top of the blockchain.

Why Use Waves?

The Waves blockchain can be attractive to companies looking to launch custom tokens or crowdfund a cryptocurrency project.

There are a variety of projects that have been built on the platform. Some examples include a document certification solution and a ticketing platform.

Waves team members have also proven to have close ties to financial institutions, with the Russian National Settlement Depositary, their central clearing house, even using Waves to develop their own in-house blockchain solutions.

Investors can also seek to add to criptomoeda WAVES to their portfolio, if they believe that one day the market will favor protocols developed to facilitate personalized tokens and dapps.

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