Waves cryptocurrency is an open blockchain protocol and development toolset for Web 3.0 solutions and decentralized applications.
In this article, we will discuss:
What is Waves?
Launched in early 2016 by Ukrainian-born scientist Alexander Ivanov, Waves is an open blockchain protocol and development toolset for Web 3.0 solutions and decentralized applications. The purpose of Waves is to solve the problems inherent in cryptocurrency market , which is the confusion. This is because many people find it impossible to program and start a token. Waves changes that by allowing everyone to create and launch custom crypto tokens, regardless of whether or not they have any programming knowledge. The platform comprises a token launch pad and a decentralized exchange (DEX).
Waves 'DEX: Built on the blockchain from Waves, Waves DEX allows users to trade tokens including WAVES, BTC and all other currencies generated on the Waves platform. The DEX features Matcher nodes that centrally match orders. These nodes do not have access to funds but can execute a trade, which is then settled on the blockchain to ensure maximum security for traders.
Token Creation Platform: Waves primarily focuses on creating custom tokens through its lite client, which is available from Android or iOS game stores. Once a token is created, it can be sold, bought or traded without the need for an intermediary. The total cost to create a token is a WAVES token.
How does Waves Crypto work?
Two types of nodes run on the Waves blockchain: full nodes and lightweight nodes. While full nodes record all transaction history, lightweight nodes rely on full nodes to approve transactions and interact with the network. Additionally, Waves incorporates an advanced version of the proof-of-stake (PoS) mechanism called rented proof-of-stake (LPoS). It is also known as Waves NG, which is based on the rejected Bitcoin-NG scaling proposal.
What is different about LPoS?
In a PoS algorithm, any node that contains coins can mine or validate transactions. In LPoS, nodes have the option of renting their balance to other full nodes. When the network randomly selects a node to extract Wave currency, nodes that rent tokens to the selected node will earn a share of the reward.
How are nodes selected?
The Waves-NG protocol decides the node to produce the next block in the Waves blockchain. It divides the network into two blocks: key blocks and micro-blocks. Miners that are selected randomly create key blocks.
What is the WAVES token
WAVES is the native cryptocurrency of the Waves network. It is used to pay for creating custom tokens. Users can also bet on WAVES to participate in the network's LPoS consensus engine. Token holders need to wager at least 1.000 WAVES to become a full node. Those who don't have as many tokens can still participate in protecting the network by renting their nodes.
Tokenomics WAVES
WAVES started out as a fixed limit token, with 100 million tokens available. 85% of these tokens went to sale participants in their Initial Coin Offering (ICO) in 2016. At the same time, 4% were given to partners, 9% to developers and 1% to each supporter. However, in late 2019, when its usefulness increased, the team removed the supply cap. The decision to reward the miners was in the hands of the network's participants. They decided the reward as 6 WAVES for each new block created in the Waves blockchain.
Where to buy WAVES coins and store them?
WAVES is available on several major exchanges as well as other marketplaces like Waves.Exchange, HitBTC, Bitcoin.com Exchange, Kraken and many more. After purchase, users can store their tokens in Waves Wallet. It is the official wallet of the Waves network, it has stable fiat, Bitcoin, Ethereum, Zcash, Litecoin and many more Waves-based tokens.
Conclusion
Waves strives to simplify the concept of tokenization. Therefore, the platform presents an opportunity for innovators and entrepreneurs to create a token without getting their hands dirty with core technology. On the developer side, Waves offers a wide variety of toolkits for building protocols, tools, and dApps.
Essentially, it's a comprehensive suite that includes everything the crypto community needs to use, build, or create blockchain-based products. This proves that the platform is robust and innovative and has a better future, especially considering the growing demand for token-based protocols.
