Waves

What is Waves (WAVES)?

Waves is a blockchain platform that helps users create custom tokens and applications. This decentralized and open-source platform is also a technology stack that tries to onboard users quickly and with minimal fuss.

Aimed at bringing users into Web 3.0, Waves avoids gas and non-Turing complete language to keep the system secure. At the same time, it provides its own native language for creating smart contracts. However, users don’t need to know how to program smart contracts to launch their own tokens.

Waves uses a high-performance protocol for hundreds of transactions per second, with transactions on the network only taking two seconds. This makes building on Waves a rewarding experience since users don’t have to wait long for their transactions to get processed.

When Was Waves Launched?

Waves was launched in 2016, which makes it one of the older cryptocurrencies out there. The WAVES Initial Coin Offering (ICO) was held in April 2016, raising around 30,000 BTC worth $22 million at the time.

The Waves blockchain launched a few months later, going live in the third quarter of 2016. Smart contract functionality came to the Waves Mainnet in 2018, allowing developers to start building decentralized applications (dApps) on it. The institution-focused platform Waves Enterprise kicked off in 2019.

Unlike Ethereum smart contracts, Waves smart contracts do not require gas to execute. Instead, the network charges a flat fee, which is a considerable advantage, given how high gas fees on Ethereum can get.

What are Smart Contracts?

Smart contracts are pieces of code deployed to a blockchain that are automatically executed when predetermined terms and conditions are fulfilled.

Anything on the blockchain is immutable, meaning that smart contracts can’t be changed after deployment Additionally, they are open source. This allows users to read and review the code to make sure it will work exactly as designed.

This allows users to trust the smart contract. A smart contract can take the place of a third party that needs to be trusted to facilitate a deal. With it, users can trust hard code rather than having to find a trustworthy intermediary.

Who are the Founders of Waves?

Waves was founded by Alexander Ivanov, a Ukrainian-born entrepreneur. Also known as Sasha, Ivanov is a trailblazer in the cryptocurrency industry.

Prior to his work with Waves, Ivanov launched Coinomat.com (the first instant cryptocurrency exchange), CoinoUSD (the first fiat token), and cooleindex.com (the first cryptocurrency index).

How Does Waves Work?

The primary use of the Waves protocol is for the creation of tokens without requiring any smart contract programming knowledge. Tokens are created and managed by using scripts that run in user accounts on the Waves network—not by using smart accounts.

These tokens are then traded on the built-in decentralized exchange (DEX) on the Waves.Exchange platform. The WAVES token is the native token of this DEX and is used for both staking and paying transaction fees.

The RIDE programming language facilitates the easy creation of “smart assets.” Created by the Waves team, RIDE also allows the creation of “smart accounts.”

Scripts are attached to smart assets, and they are in charge of validating transactions related to that asset. Thanks to this system, Waves can ensure greater autonomy, anonymity, and lower transaction fees where smart assets are concerned.

What Makes Waves Unique?

One of the biggest advantages of the Waves protocol is that it allows anyone to create custom tokens without knowing advanced programming languages and techniques. Most other platforms require token creators to code in complex languages like Solidity (Ethereum) or Haskell (Cardano).

Once created, these tokens can be traded straight away in the Waves DEX, Waves.Exchange. This makes it easy for users to complete something like an ICO, with the project completed in mere minutes.

Furthermore, the Waves blockchain can process transactions fast with very low fees. One hundred TPS means that transactions usually take just a couple of seconds, and regular transactions cost 0.001 WAVES. Meanwhile, script transactions have a fee of 0.004 WAVES.

How is the Waves Network Secured?

The Waves protocol has a two-tier proof-of-stake (PoS) structure, using full and lightweight to maintain the network.

Full nodes are essentially miners that validate transactions and add new blocks to the blockchain. They lock WAVES tokens into the protocol during a process called staking. This process allows them to gain rewards based on how much WAVES they stake.

Meanwhile, lightweight nodes do not download copies of the entire blockchain and are meant to speed up communication and transactions. However, they are dependent on full nodes for transaction confirmation.

The Waves-NG protocol determines which node gets the right to produce the next block. Waves-NG—a modification of an idea first proposed for Bitcoin—breaks up the Waves blockchain into key blocks and micro blocks.

Key blocks are created by a randomly chosen PoS miner. A public key in this block is then used by other nodes to create many micro blocks that include transactions.

Waves’ particular brand of PoS is referred to as LPoS, or Leased proof-of-stake consensus. Nodes can lease their WAVES balance to full nodes and earn a percentage of their payout.

What is the Use of WAVES?

Since Waves is a proof-of-stake network, the main use of the WAVES token is for staking. Full node operators need to stake a minimum of 1000 WAVES tokens—a sharp reduction from the previous requirement of 10,000 WAVES.

WAVES can also be used for leasing, allowing smallholders to take part in network governance by leasing their holdings out to full nodes.

WAVES is also used to pay fees on the network, as minimal as they may be. The Waves ecosystem already features DeFi platforms (Neutrino, Swop.fi, Vires and Waves.Exchange), games like Waves Ducks, and collections like SIGN Art, where waves can be used.

Who Controls Waves?

Waves is backed by an experienced team, and its founder, Sasha Ivanov, works as a Director/CEO of the company.

Several members of the Waves team are alumni of the NXT project. In fact, perceived shortfalls of NXT are often cited as the reason for Waves’ founding.

The Waves team joined forces with Deloitte to provide ICO services to clients. They are also working with the Russian National Settlement Depository, exploring the possibility of creating a blockchain platform for the distribution of digital assets.

How Much Is WAVES In Circulation?

Waves has a circulating supply of over 109 million WAVES with no maximum supply cap. 85% of the 100 million WAVES available during the 2016 Waves ICO were issued to sale participants. 4% went to partners, 9% to the developers, and 1% to each early supporter and post-ICO bounty.

In 2019, the supply cap on WAVES was removed, and decision-making was handed over to network participants. Inflation currently comes from a block reward of 6 WAVES.

Every 110,000 blocks a vote is carried out on whether users want to decrease the block reward by 0.5 WAVES.

How Do You Buy WAVES?

You can buy WAVES on the Waves DEX, Waves.Exchange. But if you’re looking to trade using major cryptocurrencies like Bitcoin, stablecoins, or fiat, you might be best off using a cryptocurrency exchange.

Waves is an established cryptocurrency that has been around for several years. Due to this, you’re likely to find it listed on many major exchanges, including Binance, Bithumb, Huobi Global, and KuCoin.

Is It Possible to Buy Waves Instantly?

Buying Waves on the Waves DEX is practically instant, given that the Waves blockchain can process transactions in just a few seconds. This may be the fastest way to buy WAVES, although the token choice on Waves.Exchange may be fairly limited.

Buying WAVES on a centralized exchange may seem instant, but that’s because you are only being credited with some of the exchange’s WAVES. To actually take custody of your own tokens, you will have to move them off-exchange and into your Waves wallet.

This can take a while because exchanges may have to complete KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures. This must be done before your WAVES tokens get released.

How Do You Store WAVES?

The best way to store WAVES is by using a wallet. The official wallet of the Waves ecosystem is the Keeper Wallet—a browser extension for secure key storage and interaction with third-party web apps.

Other officially supported wallets include:

• Enno Wallet. It’s a mobile app with a built-in exchange and DeFi features.
• WavesFX. It’s an open-source, cross-platform desktop wallet.
• Waves.Exchange. While not strictly a wallet by definition, this one can be used as a WAVES wallet.

Waves Energy Consumption

Waves is a proof-of-stake network. This means that even if network size and decentralization grow exponentially, it will not require as much computing power as a proof-of-work network might.

Rather than computing power, proof-of-stake networks rely on economic incentives and disincentives for security. PoS rewards nodes that behave according to the protocol and punishes those that do not by ‘slashing’ or confiscating their investment.

Is WAVES a Good Investment?

Waves is an open-source network that has seen almost six years of development to date, so it can certainly be argued to be battle-tested. Also, a few high-profile incidents of failure have been recorded, unlike with Solana or Terra Luna (now known as Luna Classic).

Waves is a platform that focuses on mass adoption through simplicity. Users with little or no programming skills can use the Wave ecosystem to create custom tokens and launch their own digital currencies.

Waves is also a flexible network that lets users create smart assets without developing backing smart contracts. However, while far simpler, it very much competes with some of the top smart contract platforms in the industry.

Thanks to Waves’ low fees and scalability, proponents see it applied to the areas of finance, personal identity, and gaming. It is, nevertheless, far from the only blockchain with significant potential in these areas, and it remains to be seen whether it can stand clear of the crowd.