A blockchain platform that combines the features of a cryptocurrency, a token sale, and a decentralised exchange, the Waves protocol, is covered in detail in this guide (DEX).
When blockchain technology first emerged, it proved challenging for developers to establish a balance between its features, including accessibility, usability, and feature-set. However, the Waves (WAVES) protocol has been able to significantly address this issue. A user-friendly blockchain technology is used in Waves to power the future of Web
What Is Waves?
Waves is a blockchain platform that combines the features of a decentralised exchange, a cryptocurrency, and a token launch (DEX). Smart contracts are a frequent name for these cryptocurrency tokens. The Waves blockchain has a feature that enables users to freely buy, sell, and exchange other cryptocurrencies.
Waves has developed into one of the top 100 cryptocurrency success stories since its start. As of July 2021, this expansion has led to a market valuation of approximately $700 million.
History of Waves
In 2016, Waves first entered the market. The blockchain platform and the company’s Initial Coin Offering were both a success from the start (ICO). At its start, it was able to raise more than $16 million. The platform’s success after debut was greatly influenced by the experience of the development team.
In September 2018, the Waves network got a significant upgrade. Multiple improvements, including support for multi-sig addresses, atomic swaps, token freezing, voting, and oracles, were integrated as a result of this upgrade. Oracles act as sensors off-chain that connect to the blockchain.
Analysts at Waves recorded 6.1 million transactions on the platform in a single day, exactly one month later. Consequently, breaking the record for the number of transactions executed on any blockchain platform in a single day.
The Waves Blockchain
The Waves blockchain is composed of numerous important parts. Nodes, PoS and LPoS, Waves NG, and smart contracts are among them.
Full nodes and lightweight nodes are the two categories of the Waves network’s two-tier architecture. The miners who verify transactions and add new blocks to the blockchain are known as full nodes. In the meantime, network transactions and communication are expedited by the lightweight nodes. Lightweight nodes are quicker because they can’t download the blockchain.
The Waves PoS and LPoS Leased Proof of Stake is referred to as LPoS. It is an improved PoS consensus method that Waves intends to use for distributed consensus security of the Waves network. At a cost of 0.002 WAVES per leasing, users can rent their tokens to the complete node. Leasing tokens can enable node owners to generate blocks and gain access to the mining incentive. Furthermore, by giving them the chance to lease their tokens to Waves nodes and get a commission, token owners stand to gain from leasing.
The Waves platform has unveiled a new protocol called Waves NG that enables its blockchain to process many transactions in the smallest amount of time. The feature mimics Bitcoin NG, whose principles do away with the idea of finding blocks at regular intervals. Additionally, it allows users the ability to complete their transactions as soon as the network receives their requests.
In September 2018, the smart contract feature went live. It aspires to compete with cryptocurrencies like Lisk (LSK), EOS (EOS), Ethereum (ETH), and NEO (NEO). Atomic swaps, token freezing, multi-signature addresses, voting, and oracles are among the promises made by the Waves smart contract.
Key Features of Waves Protocol
Waves differs from other blockchain systems with a number of features.
It starts by using Fiat Gateways. This makes it possible for users to exchange any token created on the Waves platform for actual money that can be kept in a bank. USD/EUR/CNY is an illustration.
Second, its KYC/AML function stores and withdraws fiat money. However, KYC is not crucial for exchanges that deal in digital currencies.
Thirdly, Waves transaction fees for routine transactions can be as low as 0.001 WAVES or approximately 0.005 for transactions that use the script.
Additionally, users can trade their BTC, ETH, and other digital currencies for WAVES using the WavesDEX. Decentralized exchange WavesDEX is built on the Waves blockchain.
Finally, Waves allows anyone to launch smart contracts because programming knowledge is not required. This is because they are still capable and secure despite not being as complex as Ethereum.
Use Cases of Waves Protocol
The transparent venture capital firm Tokenomica, the Upcoin political involvement project, the ZrCoin green manufacturing technology, and the MobileGo marketing campaign are just a few examples of applications for the Waves protocol. In addition, Waves is used by EncryptoTel, a provider of secure telecommunications infrastructure, and Incent, a blockchain-based loyalty programme.
Advantages of Waves
Waves has continued to raise awareness for widespread adoption through simplicity in its capacity as a market pioneer. Therefore, the blockchain platform offers a wide range of advantages.
It’s really easy to use Waves. Due to its straightforward blockchain technology, it gives consumers a simpler approach to create their own token. Ethereum requires that programmers have a working knowledge of coding languages like Solidarity in order to execute smart contracts. Waves tokens, on the other hand, are simple to programme and perfect for businesses with simple functions, such as those into utility tokens and loyalty programmes.
On Waves, users are free to stake their coins and receive compensation. Stakeholders on the Waves blockchain network are there to keep the network stable. The PoS network would require users to make sizable deposits in order to join as a node in order to protect against the potential financial loss that could happen if users ran a rogue node.
As a Waves trader, you have access to a decentralised exchange (DEX) that enables you to instantly trade any token based on Waves with any other token based on Waves. The platform is ideal for token launch strategies because it also gives projects instant access to liquidity.
The dominant cryptocurrency on the blockchain is waves token. The token can be used as a means of payment, to create new tokens, or to stake for rewards. The token is particularly adaptable as a result. There are 100,000,000 Waves tokens available in total. The network was successful in raising $16.4 million during its initial coin offering (ICO), which took place between April and May 2016. Its tokens can be traded on a number of platforms, including as Binance, Bittrex, etc.