Topics Altcoins
Bybit Learn
Bybit Learn
Beginner
Jul 26, 2022

Waves (WAVES): Ride the Tides of Innovation & ESG Solutions

Waves is a global open-source platform that continues to grow and expand. The platform currently offers a wide range of innovative tools, a cryptocurrency exchange, and more. Focused on energy efficiency and leaving a minimal carbon footprint, the platform's ecosystem is expected to continue to expand thanks to the help of a large development team and strong community.

Launched in 2016 and founded by Alexander Ivanov (Sasha Ivanov), Waves is a stack of open-source decentralized applications (DApps) that allow users to create new cryptocurrencies. This multi-purpose blockchain platform is known for its speed, smaller transaction fees and ease of use. WAVES is the native token of the global open-source platform, and it can be exchanged with a minimal carbon footprint.

Interested to know more? Read on as we explore the uses of the Waves platform and its native cryptocurrency.

What Is Waves?

Waves is a unique energy-efficient platform for decentralized applications using blockchain technology. Users can create and launch crypto tokens for a variety of uses, such as gaming, finance, personal identification and data applications.

How Does Waves Work?

The Waves ecosystem includes a proof of stake (PoS) consensus mechanism, decentralized exchange (DEX) and personal wallet. Currently, over 100,000 transactions are completed on its mainnet each day. WAVES tokens have also grown in popularity, with a trading volume of around $300 million daily and a market cap of over $1 billion.

The biggest thing that sets the Waves ecosystem apart from other exchanges is its popular token creation feature, designed to enable users to quickly create custom tokens for low transaction fees. This makes launching a new token similar to creating a traditional web application, so no extensive smart contract programming knowledge is needed.

Each new token can be used as a digital currency, in-game object or arbitrary resource. Tokens can be transferred between accounts and traded immediately after creation. To date, over 22,000 tokens have been created on the protocol.

WAVES tokens and tokens created on the blockchain are managed using complex scripts. The goal is to make token creation and exchange simple. Using a combination of full and lightweight nodes, each transaction on the network is verified prior to completion.

It’s also important to note that the ecosystem contains three different networks: the Mainnet, Testnet and Stagenet. The Mainnet is the network most users will access; it allows users to submit transactions, generate nodes and earn rewards. The Testnet, as the name suggests, is used for testing new applications and functions prior to release on the Mainnet. The Stagenet is an experimental network used only by the development team.

How Does Waves Crypto Platform Improve Scalability?

Scalability is often a major issue for cryptocurrency platforms. Developers are consistently addressing scalability issues and integrating new features into the platform's protocol. For example, platforms focus on optimizing storage to reduce blockchain network size, allowing them to easily adapt to new implementations.

Waves-NG

Waves Next Generation, or Waves-NG, is designed to improve scalability by lowering latency and increasing throughput. Currently, the Waves blockchain platform facilitates a throughput of over 47,000 transactions per second (TPS) from a network of 250 validators. While the protocol is similar to Bitcoin’s, it includes several innovative mechanisms that optimize performance.

The protocol determines which nodes will produce the next block in the blockchain. It essentially breaks up the blockchain into keyBlocks, which are created by a randomly chosen proof of stake miner, and a chain of microblocks. The goal is to reduce transaction issues and improve overall transaction speed.

Features of Waves Crypto Platform

The Waves crypto exchange platform is known as Waves.Exchange. Signing up for the platform takes only a few moments. The web application is very straightforward and allows users to easily manage, invest and trade their crypto. For investors, the exchange offers access to liquidity pools, staking and fast trading.

Waves LPoS Blockchain

The Waves ecosystem uses a leased proof of stake (LPoS) consensus mechanism to keep its network running smoothly. This protocol helps to improve security and ensures that only full nodes can confirm transactions. LPoS enables users to lease tokens to a node, making it more likely to generate a new block and receive a reward. This permits smaller token holders to easily participate in the block creation process and receive a percentage of the available rewards.

Smart Contracts

In order to complete transactions without third parties, blockchain networks utilize smart contracts. Each smart contract is transparent, meaning anyone can view the code and understand it. The script within a smart contract contains several checks, data reading, and operations written in Ride, a domain-specific programming language used for DApps.

According to Waves, the three types of smart contracts utilized by its blockchain network are DApps, smart accounts and smart assets.

DApps contain callable functions that invoke script transactions, which are used to perform most of the operations on the blockchain,. These include transferring, issuing and burning tokens. Other callable functions include adding and deleting DApp account data storage entries and setting up sponsorship.

Smart accounts then verify each transaction and order. If the conditions specified in the script are invalid, the transaction cannot take place. This differs from a regular account, which typically only verifies that the transaction was actually sent. Smart accounts check for transaction proofs of signature, current blockchain height, and other data.

Smart assets place specific constraints on transactions when applied. One commonly used script only allows exchanges to be completed at a certain price, but there are several other expressions that can be utilized. Current height, account balances, asset parameters and entries in account data storage can be added to the script to allow for different transaction conditions.

While there are multiple checks, the verification scripts are still very fast, enabling users to quickly complete transactions with a minimal carbon footprint.

Wallet

Rather than storing cryptocurrency in a centralized location, users can hold their cryptocurrency safely in a personal wallet The wallet feature allows users to store and trade tokens using Waves.Exchange, which offers the lowest transaction fees, according to their website. The goal is to grant users complete control over their funds while promoting privacy, energy efficiency and transparency.

One unique feature of the wallet is its ability to generate new private keys if needed. If the digital wallet becomes damaged, users can reinstall a backup to regain access.

Governance by Users

On Waves.Exchange, everyone has a voice. Any user can vote on adjusting the exchange, such as modifying transaction fees, interest rates or release dates. The goal is to help make the platform more self-sustaining. This democratic approach also promotes transparency, helping to build trust within the community.

Tokenization

While WAVES is the main cryptocurrency on the Waves blockchain platform, it doesn’t just function as a way to pay for goods and services. There are several assets and tokens that are backed by WAVES. The tokens are used to create new cryptocurrencies within the network. When creating a new token, you can attach scripts written in Ride to the tokens, allowing them to easily launch DApps, smart contracts, and other tokens. Tokens can also be staked on the network so that you can earn rewards.

WAVES Tokenomics

The Waves platform uses its native token, WAVES, in transactions. The price of these tokens can be exciting to watch, as it changes frequently but has a lot of potential. During its initial coin offering in April 2016, 100 million tokens were launched, raising over $16 million. While the Waves DEX helps to generate liquidity, tokens are frequently traded on Bybit, Binance, FTX and Kraken. The WAVES token is a top 100 crypto, with a market cap of over $1 billion.

Waves Blockchain’s Road Map

Waves has a very interesting history and has grown rapidly since its creation in 2016. While the network competes with other high market cap blockchain networks, such as Ethereum and Cardano, Waves offers easy-to-implement solutions. The network’s large development team is consistently testing new features and identifying innovative ways to grow.

While users primarily think of the current Waves ecosystem as a means of creating new cryptocurrencies, it’s actually much more complex. In 2018, the platform added smart contract functions to its Mainnet, helping third parties to build DApps on the platform. Waves has always encouraged DeFi developers by offering several tools for creating new applications.

In addition to further exploring the potential of DApps, developers are actively exploring NFT applications on the blockchain network. Waves Ducks, for example, are digital collectibles that enable you to make passive income in a play-to-earn game.

Waves 1.0

In 2017, the Waves 1.0 platform was first released after an 18-month development phase. Prior to the release of 1.0, founder Sasha Ivanov had offered a detailed road map that describes the adaptation of proof of stake consensus, state storage optimization, smart contracts, and additional improvements to the platform.

Over 2 million user wallets exist on Waves. Its 1.0 version enabled several projects to be successfully introduced without any VC funding.

Waves 2.0: New Consensus

Waves 2.0 continues to add innovative features to the platform, and could become “one of the most thriving blockchain ecosystems in the world,” according to the blockchain's website detailing the 2.0 upgrade.

In February 2022, Waves developers began working on its 2.0 upgrade. Among the biggest aspects of the upgrade is the New Consensus which features Ethereum virtual machine (EVM) support. The EVM enables developers to create new DApps using the Ethereum platform. EVM support will improve both security and speed while keeping the network decentralized. It will also make the blockchain more accessible to external development teams without the need for migration.

A detailed road map of Waves 2.0 was released in April 2022. It introduces several ambitious milestones for the platform. Here’s a quick timeline to show you what went down in 2022:

  • Inter-Metaverse Protocol lite paper released in March

  • Inter-Metaverse Protocol MVP and DAO lite paper released in April

  • Waves Labs founded in the U.S. in March, and an incubator launched in April

  • Mother-DAO and Gravity Bridges MVP launched in June

Ethereum virtual machine MVP is scheduled for release sometime in summer 2022, but there’s no set date listed on the company’s official timeline (found here).

Open Collective: New Governance Models

The Waves Open Collective is planning on introducing an alternative DAO model to grant DAO participants additional benefits. After the new framework is launched and introduced into the ecosystem, it can be further expanded. This new governance will help to improve the community by adding transparency to the development process. Using the DAO framework, any user will be able to observe processes and decisions made within the ecosystem.

Cross-Chain Finance

Waves works to connect millions of users to DeFi tools. Cross-chain technology connects blockchain networks, enabling them to easily exchange information while promoting energy efficiency. The platform uses Gravity Bridges to connect a wide range of applications and users. The bridge included in 2.0 would connect users on any EVM-compatible chains, including Bitcoin, Ethereum, Solana and Binance Smart Chain (BSC). Cross-chain finance facilitates greater accessibility for multiple blockchain networks.

Metaverse

Waves has always shown strong interest in NFTs and gaming. One of the many projects the Waves developers are working on is connecting blockchains with different metaverses. This would be a solution to offering NFTs in games, enabling users to transfer the unique items they own between games. The level 0 Inter-Metaverse Protocol would help game creators easily integrate NFT functions with a unified API.

WAVES Price Prediction

When looking at historical charts for the WAVES token, it can be difficult to make an investment decision. The token has seen several spikes in price since January 2021, with a 52-week low of $4.16 and an all-time high of $63.36 in March 2022. As of July 2022, the price of each token is under $5.

Because these tokens have run up in price quickly in the past, there will always be the possibility it can happen again. According to Coinpedia, the price of each token could reach $6.32; however, it could also reach potential lows of $4.73.

Many investors are predicting higher prices after the transition to Waves 2.0. There are several innovative features being introduced in 2023, all of which could affect the price of WAVES tokens. Because the platform can be used for NFTs, it could also steadily grow as the NFT market continues to rise.

While there are several reasons why the price of WAVES could climb, it’s equally important to understand the potential reasons why the price per token can fall. Because Waves is in a highly competitive marketplace, other platforms and cryptocurrencies could emerge that are more efficient. Increased regulations from the government could also negatively impact the use of the Waves blockchain network, thus lowering the demand for WAVES tokens.

Where to Buy WAVES

If you’d like to purchase WAVES tokens as an investment, sign up for an exchange platform. Some investors don’t want to use the Waves platform, but still want to invest in the tokens.

Like other cryptocurrencies, WAVES can be purchased on several different platforms. For example, Bybit enables users to purchase tokens using a mobile app or desktop. You can simply register and verify your account. Then, tap the Buy Crypto option and enter the amount of tokens you would like to purchase. In addition to being a secure and reliable exchange, Bybit offers 24-hour multilingual support. This makes it a great choice for new investors.

Click here to register for a Bybit account and start trading!

Is Waves a Good Investment?

Many WAVES investors have bullish predictions, but it’s always important to do your own research before investing your money into a cryptocurrency project. Because the platform has several practical uses and is constantly upgrading features, it could be a good investment, especially with the upcoming release of 2.0.

Closing Thoughts

Waves does more than allow users to create new eco-friendly tokens and trade NFTs with low transaction fees and minimal carbon footprint. The ecosystem has several practical uses, and new features are currently being developed. With a strong community and development team, it’s exciting to think of where the blockchain will go from here.