WAX stands for Worldwide Asset eXchange. It is a completely decentralized platform enabling developers to operate a virtual marketplace, which is a fully-functional without having to invest in infrastructure, security, or payment processing. The platform is also a decentralized marketplace for virtual assets that are designed specifically for video games.
This guide will explain what WAX is all about, the purpose it is designed for, the team behind it, the way it works, and the various uses and applications.
What Is WAX Designed For?
One of the primary issues faced by gamers is monetizing in-game currencies. Cross-platform play is a relatively new concept as gamers from across the world pleaded with gaming giants – Nintendo, Sony, and Microsoft to let them play together. However, this only fueled the battle for gamers' money, which continues to rage.
The WAX platform is essentially designed to allow millions of traders to create virtual stores using their fully-functional decentralized platform. All the virtual stores shall be allowed to benefit from in-built features, including security, trust services, and instant payments. This is expected to attract millions to the growing ecosystem of blockchain and gaming.
Who Is The Team Behind WAX?
The developers at OPSkins are the team behind WAX. It is the largest marketplace in the world for purchasing online video game-related assets. William Quigley is the CEO and co-founder of WAX. He is also the co-founder of Clearstone Venture Partners, which is a $700 million venture capital firm and Idealab Capital Partners, which is the first consumer Internet venture capital firm.
OPSkins was created in 2015 and has since then become a global market leader. It has served millions of customers from over 95 countries by facilitating 100 million online gaming-related purchases every year.
How Does WAX Work?
WAX uses a Delegated Proof of Stake (DPoS) algorithm to generate its token. WAX successfully integrates multi-party agents and settlement agents into the concept of decentralized exchange while maintaining asset agnostic nature. High transaction throughputs are enabled by the DPOS consensus algorithm.
Transfer Agents are used for accepting and transferring virtual goods between different users. Transfer Agents have a more important role to play as compared to third-party escrow agents. They have to put up a bond by way of WAX tokens as stake. Their rewards are distributed in proportion to their bond. In return, the Transfer Agents earn WAX tokens. These tokens are awarded in proportion to the bond (WAX tokens) they use as a stake.
It consists of 64 delegated nodes, which are called “Guilds” to stay true to the gaming culture. Guilds exist on the WAX platform to make sure that the exchange of tokens and other functions on the platform is carried out smoothly.
What Are Current and Future Applications of WAX?
WAX tokens are designed to be utility tokens on the WAX exchange. These tokens are essentially used for exchanging virtual goods for cryptocurrency. They are primarily used for tokenizing video games related products. However, they can be used outside of this use case. Trading between sellers and buyers on the WAX platform is made trustless by using smart contracts.
The token is designed to be used for making in-game micro-transactions. This is one of the reasons behind making it divisible up to 17 decimal places. The WAX token is used as a cryptocurrency, which helps fuel purchases made on the WAX platform. It can be used to trade in products, like sneakers, apparel, gift cards, Magic The Gathering cards, and other physical and digital items.
WAX tokens serve other functions of determining the number of votes a user gets. The tokens are also used as a payment mode for transaction fees on the WAX network. This is similar to how ETH gas works.
There is no denying the fact that the WAX token serves a much-needed utility to a large and fairly active sector. However, the fact that its trade dropped off soon after hitting exchanges is a matter of concern. This could well mean that the gaming community is not ready to embrace crypto. However, WAX’s use of Transfer Agents and the application of Guilds via DPOS will pave the way for future use cases of smart contract-based utility tokens.
There is another reason why crypto enthusiasts are not shying away from owning WAX tokens. The team behind WAX designed it to scale as the size of the digital products industry grew. This means more WAX tokens shall be pledged as the volume of their business grows. This will ensure that demand is always there for WAX tokens.