Updated: Dec 20, 2019
Waves is a decentralized, blockchain-based platform and one of the more successful trading blockchains in terms of crowdfunding campaign results. WAVES is the cryptocurrency fueling the platform. Besides allowing the utilization of other crypto coins to transact, the platform also gives the user the option to create their customized cryptocurrency. Waves also allow for smart contract usage.
This guide will talk about what Waves is designed for, the team behind it, the way it works and various uses and applications.
What is Waves Designed For?
Waves was designed to counter the many problems faced by major cryptocurrencies, mainly mass-trading since most cryptocurrencies only use Euro, Chinese Yen and US Dollars for exchange. Also, trading of precious or immovable commodities is nearly impossible without employing a cumbersome authentication process.
Waves take care of all this and more, allowing individuals to create their cryptocurrency on the platform. The platform is also intended to allow users to complete decentralization. For this purpose, it is built on the Proof-of-Stake model, as opposed to Bitcoin’s Proof-of-Work model. This prevents the control from being centralized into the hands of a few.
Who Is the Team Behind Waves?
Waves was officially launched in November 2016 by Alexander (Sasha) Ivanov, a Russian physicist. He was also the first to launch the blockchain-based instant cryptocurrency exchange, coinomat.com. Before launching Waves, Ivanov had been involved in the development of payment systems software.
Waves partnered with several large organizations for numerous reasons. Some of the more notable partnerships include Burger King Russia, Gazprombank Digital, Russian National Settlement Depository, Deloitte, and Moscow Stock Exchange. Waves is also helping Kazhakstan to become the second country that regulates cryptocurrencies.
How Does Waves Work?
The Waves platform makes use of the language Scala, and works on the proof-of-stake (PoS) consensus model. WAVES-NG algorithm is used by the blockchain to ensure safe gateways and fast transactions. All transactions are carried out as peer-to-peer transactions, which eliminates the need for middlemen.
Like most other cryptocurrencies, Waves is also a blockchain-based platform. This means that the network is decentralized to a major extent and not constrained to a single entity or core group. The information that is stored on ledgers is available for view for all, and cannot be deleted or otherwise modified.
The Waves blockchain allows any user to issue their custom cryptocurrency and raise funds by selling it. The platform also allows users to exchange new assets for Waves tokens. The official Waves blockchain explorer – WavesGO can be used to identify new tokens going public.
New tokens that are created and transferred using the Waves platform are built as attachments on the blockchain transactions. However, there is always the risk of a hard fork in this strategy. This is why Waves implements all new transaction types through plug-ins as extensions on top of the core software. This way a client missing a plug-in can still get to relay the custom transaction through the Waves network.
What are Current and Future Applications of Waves?
WAVES is primarily used to pay transaction fees on the Waves platform. While transactions can be carried out using any cryptocurrency, the exchange requires the transaction fees to be paid via WAVES tokens.
Waves is also popular as a platform to raise crowdfunding. The popularity is because the blockchain accepts all major cryptocurrencies, including Bitcoin and Ethereum, as well as, fiat currencies.
The platform can be used to build customized crypto tokens, which can then be stored on customized wallets. This wallet can also be used to store other tokens and be used as a safe gateway to fiat currencies. Smart contracts allow WAVES to be used for trading, currency exchange, and other similar transactions.
Few use cases of Waves that is being built or already in production, include:
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Waves is expected to soon become the fastest decentralized platform (internationally) as per Forbes, which alone suggests that the crypto coin is all set to rule the corporate world. The reason this platform has become so popular is because it allows the creation of new cryptocurrencies. These crypto coins can then be applied towards reward systems and self-sustaining ecosystems.
WAVES is currently hovering around the top 40 cryptocurrencies by market capitalization. The future looks promising for the cryptocurrency with many more innovations on the way.