What is Waves?
WAVES is an open and decentralized trading platform, built on its own blockchain and with support for customized currencies (Custom Tokens / CATs). This makes decentralized crowdfunding possible, but traditional and digital currencies can also be securely stored and traded on the Waves Platform thanks to the cryptographic security in the Waves blockchain.
Did you come to this page because you were looking for information about WAVES, but would you first like to know what cryptocurrency really is and what blockchain technology can mean for us? Then read: introduction to cryptocurrency.
The Waves Platform describes itself as an Open Blockchain platform, which extends the functionality of cryptocurrencies such as Bitcoin in order to be able to do more than just carry out transactions. The idea is not to replace other crypto currencies, but to provide a platform on which everything of value (cryptocurrencies, traditional currencies such as the euro and dollar, shares) can be issued, transferred and exchanged in a 100% decentralized manner.
The technology of the platform is based on a number of other crypto projects such as Nxt and BitShares and SuperNet. Nevertheless, the entire Waves Platform has been developed and programmed in Scala (programming language) from the start. Although the concept of decentralized stock exchanges and properties is therefore not new, WAVES distinguishes itself in terms of, among other things, ease of use and applicability.
On the Waves platform it is possible to create a digital or virtual currency within 1 minute, which can stand for anything. The value of each virtual currency is guaranteed because 1 on 1 another “real” currency guarantees. For example: whoever wants to save Bitcoins (BTC) on the Waves Platform, sends 1 BTC to the Waves-Bitcoin (wBTC) address on the Waves Platform. On the platform the relevant user receives 1 Waves token “wBTC”, which carries 1: 1 the value of 1 Bitcoin (BTC).
Once on the platform, tokens can be exchanged for other tokens, for example Waves-Euro (wEUR) or Waves-Ripple (wXRP). However, within the platform these crypto currencies can be exchanged at lightning speed, without the intervention of a central authority.
A challenge that many other blockchain exchanges face is the introduction or execution of fiduciary money, such as euros. For this WAVES uses so-called fiat gateways: licensed and authorized central parties which accept traditional currencies and convert them to tokens on the WAVES blockchain, such as wEUR or wUSD.
Because fiat gateways serve as a central authority, laws and regulations can be applied to the inflow to and outflow of fiduciary money on the blockchain. Compliance frameworks such as KYC (Know Your Customer) and AML (Anti Money Laundering) currently separate the blockchain from the real world because, among other things, the financial sector is required by these compliance frameworks to know where for every transaction from a certain value it is money comes or goes. Thanks to the fiat gateways, the Waves Platform offers opportunities for countries to regulate cryptocurrency.
The WAVES crypto currency has a maximum outlay of 100 million units. That means that the currency has no inflation. To ensure that it remains profitable for the miners to confirm transactions on the blockchain, small fees (0.001 WAVES) transaction fees are charged. Waves uses an improved version of the Proof-of-Stake protocol as a consensus algorithm. The improved version, called Leased Proof-of-Stake (LPoS), can handle more transactions (1000 per second) and can confirm this faster.