Coin Study

What Is Waves (WAVES)? A Crypto Coin Study

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The Waves Platform is frequently styled as the cryptocurrency equivalent of the Kickstarter crowdfunding platform. Anyone can create a token to launch a fundraising project and backers can use cryptocurrency to back their favorite projects.

Waves styles itself as “The Web 3.0 Company.” But who is behind Waves, and where is the Waves Platform going in the future?

What Is Waves?

Waves is the name given to the Waves Platform. Waves aim to create “the backbone of the next-generation digital landscape.” As such, the Waves Platform is a complete blockchain and cryptocurrency entity, with a proof of stake blockchain, wallet, decentralized exchange, integration tools, and the Waves token itself.

The Waves Platform has a long-established team with several experienced cryptocurrency developers.

Founder and CEO, Sasha Ivanov, is known for launching the first instant cryptocurrency exchange, Coinomat. Coinomat now forms part of the gateway services for the Waves DEX.

How Does the Waves Platform Work?

The Waves Platform combines mixture of lightweight nodes and full nodes to enable rapid scaling and increase transaction speed. A lightweight Waves node doesn’t download the full blockchain, instead of using the current network state to assist with transaction processing and payment verification.

Waves uses a leased proof of stake consensus algorithm to process network transactions. This means you can earn Waves as a reward for staking your existing tokens to keep the Waves network running. The Waves full staking node requirement is now 1,000 Waves, whereas it was previously 10,000. A Waves full staking node can also earn Miner Reward Tokens (MRTs). If you hodl your MRTs, you qualify for the distribution of other tokens created on the Waves Platform, plus you receive voting rights within the proof of stake platform.

There are 100,000,000 pre-mined Waves tokens; you cannot mine more Waves tokens.

What Are Waves Custom Application Tokens?

One of the most important features of the Waves Platform is the creation of new cryptocurrency tokens. You can use the Waves platform to create a customized cryptocurrency, known as Custom Application Tokens (CATs). In turn, the CATs can be used as part of a crowdfunding project, in loyalty reward programs, or even as currency for an app or game. You can also include cryptocurrency tokens created using the Waves Platform in smart contracts as well as trade them on the Waves decentralized exchange.

In comparison to Ethereum, another cryptocurrency platform on which you can create your own token, Waves is simplistic. Waves requires no coding knowledge at all, meaning the Waves Platform is open to anyone that wants to create a cryptocurrency token for a project or otherwise.

To create a token using the Waves Platform, you must hold at least 1 Waves token. Keep reading to find out where you can buy Waves tokens!

What Is the Waves Decentralized Exchange?

As well as CAT creation, Waves also operates a decentralized exchange (DEX)—the first decentralized cryptocurrency exchange in history. You can exchange your CAT on the Waves DEX alongside established cryptocurrencies and other fiat listings. Of course, when you create a CAT, it is essentially worthless, so you won’t head straight to the Waves DEX and cash out your currency, as it were.

waves platform waves dex

However, Waves DEX is an excellent decentralized exchange, CAT listings aside. The Waves DEX uses gateways and licensing to allow listings of numerous cryptocurrencies on the exchange, all while ensuring there is no centralized hold of tokens to attract an attacker or scammer. Also, Waves DEX uses “matcher nodes” to automatically connect sellers and buyers, creating a peer-to-peer transaction. Transaction approval is extremely fast. Once both parties approve the transaction, it is written to the Waves blockchain.

Because the transactions are peer-to-peer, the Waves DEX also has some of the lowest transaction processing fees of any cryptocurrency exchange, coming in at less than $0.01 per order.

Where Can I Buy Waves?

At the time of writing, one Waves token costs $2.44. Waves all-time high is $17.06, achieved during December 2017 (like most cryptocurrencies). It has a market capitalization of $243,845,551, ranking it the 30th cryptocurrency by market cap.

waves crypto coinmarketcap chart

Waves is available at all major cryptocurrency exchanges. Coincodex lists Waves on 30 exchanges, with 75 currency pairings.

Want to buy some Waves? Help to keep the lights on at Blocks Decoded and use our Binance link to create your trading account.

What’s Waves Future Potential?

Waves has a significant amount of future potential. Already well positioned with its token creation platform and pioneering decentralized exchange, Waves also has several high-profile partnerships underway or in the development process.

For instance, Microsoft recently made Waves Smart Assets and Smart Account functionality available to developers on the Azure Cloud platform. The additional functionality adds to the existing Waves Platform partnership with Azure Cloud.

Another interesting partnership, and one that exemplified what Waves Platform is best at, was with Burger King Russia. Burger King Russia issued 1 billion WhopperCoins, with customers receiving one WhopperCoin for every ruble spent in a Russian Burger King. Once a user accumulates 1,700 WhopperCoins, they can trade them in for a free Whopper. (A Whopper in Moscow costs approximately 300-400 RUB, so it doesn’t take long for a regular Burger King visitor to fill a bag of coins!)

The Waves Platform also has a strategic partnership with Deloitte, providing expert advice on cryptocurrency and blockchain developments to other Deloitte business partners. Other partnerships include links with Russian energy giant, Gazprom, Russian manufacturing giant, Rostec, the Moscow Stock Exchange, and Japanese cybersecurity firm, Group-IB.

Furthermore, the continuing development of Waves Android and iOS apps, the Waves DEX, and support for smart contracts and smart assets will continue to attract users to the Waves Platform.

Join the Waves Community

If you want the follow or join in with the Waves community, there are plenty of ways to do so:

If you want to learn more about cryptocurrencies, check out some of the other entries in the Blocks Decoded Coin Study series. You can find information on Stellar, Ripple, EOS, Bitcoin Cash, and more.

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Gavin Phillips
Gavin has been investing in Bitcoin on and off since 2010, and writing about it for past few years. He has contributed crypto and blockchain-focused for several publications and even the odd ICO whitepaper. Gavin loves the focus of real-world applications of blockchain technology and how it can help ethical consumerism.
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