What is Waves (WAVES) in simple words

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2019-08-28 00:00:00:

Waves is a large blockchain platform designed to issue and exchange cryptographic tokens. It follows from this that it would be incorrect to call Waves a cryptocurrency, since it is more than a digital coin. On the basis of the platform, you can conduct crowdfunding campaigns, create decentralized counterparts of corporate shares, e-tickets and even your own currency. In the article, we will consider what Waves is, its history, what features it has, what strengths and weaknesses it has, how it relates to the ruble, euro and other popular fiat currencies, what prospects it has for traders and investors.

What is Waves (WAVES)?

Waves is a multifunctional platform that helps to fulfill various tasks of users: create tokens and exchange them, develop cryptocurrencies, implement crowdfunding projects, etc.

The Waves platform has a strong focus on crowdfunding. The developers paid great attention to eliminating the shortcomings that existed in similar projects operating in the cryptocurrency market today . In particular, the functionality has been expanded regarding ways to attract investments, and the volatility of user tokens has been reduced . The developers promise that Waves will improve and provide clients with ample opportunities for comfortable trading of client assets, investment and work. At the same time, the platform has a high level of security and is completely private.

Lets make a short summary of what Waves is. It:

modern crowdfunding system;
trade in any goods;
trading on exchanges with all kinds of assets, including fiat ones.

Waves history (WAVES)

The history of Waves (WAVES) started back in 2016, when a physicist from Russia Alexander Ivanov managed to issue tokens for a total of 30,000 BTC. On June 1, 2016, the platforms first day, it raised $ 2 million. The very idea of developing this project appeared against the background of understanding that the existing blockchain platforms cannot meet the needs of the crypto market, plus they have many disadvantages. Waves was conceived to focus on scalability, ultra-speed, max-security, and enhancement.

In Q3 2016, the tested platform was officially launched, and by the end of the same year, the developers implemented token customization . Its big plus was that customers were able to create tokens without having experience programming smart contacts. The platform has become a very inexpensive and reliable portal for crowdfunding and instant trading. The DEX exchange itself is transparent and available for exchanging any coins that were created on its platform. Visitors have access to profitable affiliate programs and loyalty promotions.

The global community started talking about Waves in September 2016, after the publication in Forbes of an article with a promising title: " Waves startup will help bring IPO to blockchain." And in February, an interesting interview with Alexander Ivanov appeared in the same magazine.

The next stage of the companys development was the opening of a blockchain project under the promising name "People of Growth". This is a progressive development from Waves and the Growth Party. The platform is based on the specially developed Upcoin token . The essence of this startup was to make it possible to conduct intraparty voting, crowdfunding and use a rating system on the blockchain .

Since March 25 of the same year, customers have got a unique chance to buy bitcoins using their own bank cards. This was achieved through collaboration with Indacoin. The DEX exchange began its work on March 29 .

Many important events for Waves history happened in May 2017:

Waves holders began to lease funds on their accounts to full nodes, receiving commission from transactions;
the platform started working on the basis of Microsoft Azure, blockchain operations became possible on a global scale;
the platform has integrated the payment gateway into Lite Client, which allowed users to quickly replenish cryptocurrency wallets by converting euros;
Waves tokens , as payment units, began to be accepted by the famous Gusto DiVino pizza chain.

At the end of 2017, the company made a super upgrade of its brainchild. In particular, the wallets network and UI was completely updated, Waves-NG (a progressive consensus protocol developed on the basis of Bitcoin-NG) appeared. Such improvements made it possible to increase the speed of the blockchain up to 100 transactions per second.

Last year, a convenient mobile application appeared that almost completely fulfills the functions of the platform. There was also a successful launch of smart contacts. In 2019, the company is developing, improving, signing new cooperation contracts, offering customers a more modern multifunctional platform.

Distinctive features of Waves

Waves is a unique platform that has attracted many investors and gained traders trust. What is so special about it? Lets try to figure it out.

So, the distinctive characteristics of Waves are:

Unique blockchain model . As we already wrote, Waves works on the basis of the new Waves-NG protocol , developed on the basis of Bitcoin-NG, which allows Bitcoin to be scaled . Plus, the platform is so modernized and high-tech that it claims to be called the worlds fastest blockchain. And there are reasons for this, because the network processes about 1000 transactions per minute.
Simple to use. The developers have made sure that customers without programming skills can easily use the platform to perform operations. The intuitive software is implemented in both the online client and the desktop version.
Kriptovalyutnye gateways. This is an opportunity to exchange assets of different denominations within the platform itself. If a payment gateway (called a gateway) is provided for a specific cryptocurrency on Waves , you can freely exchange it for the required digital or fiat currency. A small commission is paid on internal tokens . This is where Waves has a big plus, because this minimum amount is only 0.001WAVES.
Multifunctionality. Waves allows ICOs , also has the ability to launch smart contracts, produce tokens that can be immediately launched for trading on its own open internal exchange.
Internal exchange. And here she is. This is Tidex. Introduced in 2017 to allow Waves clients to trade assets, exchange digital coins for real money, while at the same time, with a minimum commission.
Mining. The developers use the PoS algorithm , the blocks are revealed as they arrive on the balance of the coins (minimum 1000). We will discuss mining in detail below.

How Waves works

Naturally, before buying Waves, every investor or trader is trying to figure out what is its principle of operation?

The platform operates on the basis of LPoS consensus , that is, users can exchange tokens, lease them for any time period. Only complete mods have the right to mine new tokens, all other clients can lease the accumulated assets to mods, receiving only profit, but not independently participating in other processes.

Operations with tokens form block chains. All of this is based on cryptography, which is also used in the Bitcoin system. It is a basic public key encryption system. The one who has tokens on the balance keeps them until the private key becomes known. Tokens can be exchanged for real paper money and other tokens, crypto. Simply put , tokens are an additional type of transactions on the blockchain , allowing you to refuse to add new hard forks (new types of transactions that are associated with risks). Waves creates new types of transactions through special plugins that work as extensions to the main software. If the client does not have a plugin, he can also make a transaction, but over the network. Even without updating the software, customers can fully use the functionality and working tools of Waves.

Waves software is based on 3 basic functions:

smart contracts , like most similar projects;
CATs - specialized application tokens ;
DEX are modern decentralized exchanges.

Lets consider each in more detail.

Smart contracts. This functionality began working in the fall of 2018. The RIDE language was specially developed for the project . Unlike most existing smart contracts, it is possible to freeze tokens on Waves , create multi- level addresses, vote, atomic swaps and oracles. Smart contracts do not need Gas, you can work within the network by paying a small fixed amount.
Special tokens. This is the priority area of the platforms functioning. Users can generate , transfer, and exchange tokens through a standard lightweight client that can be used online on mobile or on desktop devices. The advantage here is that all operations with tokens are performed without intermediaries, the platform interface is intuitively simple and does not require programming knowledge from clients. This makes Waves the perfect choice for loyalty programs, basic operations, and crowdfunding.

To create a custom token, you need to pay 1 WAVES coin .

Decentralized exchange. This is a key feature of cryptocurrency. Decentralization reduces many risks, there is practically no possibility that the amount stored in your wallets will be made public, and the exchanges themselves will be hacked. The account is controlled only by the client, no one can freeze money or perform any transactions.

The very moment of buying and selling tokens is also interesting: the exchange automatically finds matches to satisfy the clients request. The cost of one request is less than $ 0.01. Plus, it provides users with numerous payment gateways that allow them to exchange not only tokens, but also cryptocurrencies and fiat money. All transactions are confidential.

Waves architecture

Waves architecture is somewhat different from classic blockchain platforms. Basically, Waves is a 2 architecture with full and lightweight nodes, which is implemented in order to prevent problems with scaling. This structure differs from the Bitcoin architecture , which only provides for the use of fully populated nodes. But we cannot say that this is bad, since the developers managed to achieve simultaneous network support, faster and more correct platform operation.

What are the main advantages of using 2 architectures? The point is that nodes never completely overload the blockchain. Noda Waves depend on the full node, which are needed for communication and confirmation of all transactions. You may be wondering: how does the platform provide trust between populated and lightweight nodes? Indeed, this is the current moment. Waves uses Scorex, which allows lightweight nodes to use only data about the current state of the network without the need for a complete history of transactions. This data helps to make the procedure for carrying out all operations simpler and more understandable.

Waves advantages and disadvantages

Considering what Waves is and what features it has, we indirectly mentioned its real advantages. To summarize the above, lets name the key advantages of Waves.

For maintaining the network, the owners of Waves assets are rewarded. True, mining is possible only if at least 10,000 tokens are stored on the clients account. Smaller users can rent out their assets to experienced investors for a small profit.
It is possible to exchange Waves tokens (cryptocurrencies) for another cryptocurrency or real money.
Wide functionality, you can install the plugin on Google Chrome, thereby making the work pleasant. And there are a large number of such plugins .
The platform is distinguished by decentralization, you should not worry about hacking and mixing into foreign exchange transactions of third parties.
The commission is minimal and fixed.
Transactions are carried out very quickly.
There are no restrictions on the withdrawal of funds stored in wallets.
Simple and user-friendly interface, lightweight mobile version.
All assets are saved not on the exchange, but on the clients wallet.
1 Unique mining system (getting new coins).

Naturally, like any cryptocurrency platform , Waves is not without its drawbacks. It:

Periodic bugs. All such services experience periodic interruptions in their work. And the Waves platform is no exception. Users noted that sometimes the system freezes, taking up valuable time. Plus, this leads to a short drop in the Waves rate .
There is a risk of fraud. Even despite decentralization and the use of a KYC system that identifies all customers, there is still a risk of hackers entering the system or hacking the platform.
Knowledge of the legal framework of your country. When creating tokens, you can face the legal restrictions of your country. Therefore, you need to carefully study the legislation, only then work on the multiplication of tokens.

Does mining WAVES exist?

The platform is based on the PoS algorithm . That is, the blocks are revealed not due to the attraction of high-power computer equipment, but if there are 1000 coins on the account.

To receive coins, you need to download and install the Waves node from the GitHub repository . Connect it with a client already installed on your PC and enjoy receiving coins. And here, too, there is a nuance: the fact is that the reward for a completely decrypted block is not fixed. The amount of coins can be calculated with a calculator on the official website, it largely depends on the manipulations made by users on the network and the number of remaining tokens on the balance.

But the platform encourages its miners, especially newbies, by giving them bonus MRT tokens . So, for the first 70 disclosed blocks, the account will be automatically replenished with 60 coins, for each disclosed block in the future, 30 coins will be credited. This is a good earning opportunity, since tokens can be immediately sold on the platforms internal exchange.

1000 Waves owners can lease their assets to nodes that are working on new blocks to be revealed. This is done using the LPoS leasing protocol. The interest from the earnings of the nodes is credited to the wallet once a week. Although each client can withdraw their percentage at any time, if this does not contradict the agreement drawn up with a specific node. We recommend cooperating with trusted ones, for example, WavesFullNode, Wavespool, LeasingWaves or Wavesnode.

Anyone can mine Waves themselves , but they must have at least 10,000 coins on their account. Download special equipment and you are a node!

How do I buy or sell Waves?

There are two ways to buy Waves:

On decentralized crypto-exchanges, exchanging a token for euros, dollars or BTC. The larger the amount you want to buy, the easier it will be. Especially if Bitcoin is involved in the purchase.
On crypto exchanges (Bittrex, Binance, Tidex, etc.). In order to buy Waves in this way, you will first have to acquire Bitcoin or Ethereum, and then exchange these cryptocurrencies for Waves. There are several exchanges where you can also buy Waves with fiat currency. Their number is constantly increasing due to the fact that Waves is becoming more and more popular and in demand.

There are also special services like Shapeshift and Changelly, where you can also buy Waves.

In principle, a large number of popular exchanges quickly accepted the cryptocurrency, there are no problems with its acquisition, as well as sale. Most often, Waves are traded in tandem with BTC , but it can also be exchanged for fiat currency, as well as any token. In addition, we have already written that it is rented out, making a profit.

WAVES to ruble rate

The Waves exchange rate against the ruble on September 1, 2019, stopped at an average level of 72.831 rubles. For the past six weeks, the Russian ruble has been strengthening its position in the cryptocurrency market, constantly growing in price. Analyzing the situation over the last month, one cannot fail to notice significant fluctuations in the rate in the WAVES / RUB pair. In particular, Waves fell by -15.55% against the ruble.

Lets analyze how the Waves exchange rate has changed since the end of 2017, when the coin went up sharply and attracted public interest.

So, in October 2017, there is a rapid rise in the price of Waves against the ruble. By 2018, there were several jumps in the price of the coin. The pair traded at 166.53 rubles (September). But by the end of November, the price plummeted to 69 rubles for 1 Waves. The next rise in the Waves rate peaked at the beginning of December 2018. Waves traded against the ruble at 144, 47. In two days the price dropped to 99.7 rubles, and then went up rapidly again. On December 20, the Waves rate against the ruble reached its historical peak - 285.89! But such a surge lasted just a few hours, after which there was an equally rapid drop in the price of the coin. So, on January 21, 2019, 168 rubles were given for 1 Waves, and on January 23, the price again jumped to 201 rubles. The whole of 2018 was characterized by a “swing” in the ratio of Waves to the ruble: it either increased or fell. In 2019, the situation is about the same, only the Waves rate is no longer reaching such high heights. The last peak of the coins appreciation was on July 7th. Waves to the ruble ratio was 1: 130.6. From that moment to the present day, there has been a gradual decline in value. Forecasts are still optimistic, but investors and coin holders are starting to worry.

Waves to dollar rate

Since 2016, the course has changed, criticizing articles have appeared on the network more than once, generating a lot of questions. So, in 2016, Waves correlated to the dollar in the range from 0.16 to 1.33 dollars. At the beginning of 2017, the tables jumped up sharply, the value of the currency first rose to $ 7, and then to $ 16 per coin. Analysts associate this with the development of the company, because the history of Waves went through its key stages: the platform itself was improved, plugins and mobile applications were introduced, and profitable partnership agreements were concluded. Interest in Waves grew rapidly, attracting new investors, thanks to whose confidence the Waves rate increased.

As soon as the news of the addition of a new gateway was announced or a contract was concluded, the price of Waves rose sharply against the dollar. At the same time, the total market capitalization increased. For comparison: in the summer of 2016, the capitalization was 16 million, and a year later - 60 million. At the end of 2017 - more than 1 billion.

In 2018, the Waves rate suffered a significant collapse, however, like the entire cryptocurrency market. Waves to the dollar amounted to 5, and capitalization decreased by 3 times. Spring was especially painful for investors, as the Waves rate kept below the dollar. Despite the crisis, chaos and fears, the situation gradually began to recover, and the coin became more expensive. In February 2019, the value of Waves was $ 2.8, and by September 1, it fell back to $ 1.1. Today, cryptocurrency strives to break into the TOP-20, it looks promising, but not stable enough yet.

We know that the Waves price depends a lot on the level of public confidence in the coin. So why are investors in no rush to invest in the coin? What is holding them back? Analysts provide several explanations for these questions:

Developers position their system to be completely decentralized, although, in fact, users doubt it. Not unreasonable, because there were cases when the company froze "suspicious" assets of its clients.
The network sometimes malfunctions. Basically, name at least one cryptocurrency platform or exchange that runs like clockwork. This does not exist. But still, interruptions in work bring losses to traders, especially those who directly trade on Tidex.
The network showed weakness before phishing attacks. So, in 2018, there were frequent messages to customers about "generosity promotions" with tokens as a gift. It was enough to follow the link to receive your prize. Naturally, this was an act of fraud, because when performing such an action, the client lost all assets from his wallet.

WAVES to EUR rate

On July 21, 2016, the Waves rate against the euro was kept at 0.17. In October of the same year, it increased slightly - to 0.33 euros per 1 Waves. The Waves rate held about this level until the beginning of April 2017. Yes, this is a key time in the history of Waves, like all other cryptocurrencies. The time when the boom in the crypto market began, the rapid rise in price of digital coins to unprecedented levels. So, the first wave of Waves appreciation against the euro fell on June 11, 2017, when 1 Waves was given 5.58 euros! But already on June 15, the rate fell to 1.8 euros. Until November 29, 2017, there are 5 more small waves of fluctuations in the value of Waves, when the currency either increased to almost 5 euros, then again decreased to 2 euros for 1 Waves.

The second turning point in the history of Waves was November 29 and the beginning of the largest wave of cryptocurrency price increases. In a little less than a month, on December 21 for 1 Waves they already gave 13.55 euros. These are the days when the cryptocurrency market went crazy: everyone was buying / selling. True, such price anomalies did not benefit everyone. While some coin holders became millionaires, others fell into a huge debt hole, losing entire fortunes.

On February 7, 2018, Waves against the euro again dropped to 4.08. By February 21, a slight rise in price began - by only 2 euros. The last maximum Waves rate was recorded on May 5, 2018. Then for 1 Waves they gave 6, 42 euros. From that day on, the exchange rate only gradually declined, and investors were waiting for a second chance to get rich. Naturally, there were waves of their own, but they did not rise even above the 4 euro mark.

As for the situation today. On September 1, 2019, for 1 Waves they give only 0.989 euros. Negative dynamics has been observed for several weeks, which will bring us a new day - unknown.

Where to store WAVES?

To store Waves, exchange and sell, you need to register a wallet. The company has developed its own storage on the exchange, and the client can also use other online wallets or desktop versions. To keep your assets close at hand, you can use Chrome and the Android and iOS app. However, dont forget about storage reliability. Be sure to install a multi-layered data protection system.

The company has developed the Waves client, which is available for download and already contains an integrated multi-currency wallet, convenient for performing exchange operations, making payments, participating in trading and storing fiat money. You can buy Waves through this wallet by funding your account with fiat money or cryptocurrency . Then the funds are simply converted at a favorable rate with a minimum system commission.

Emission Waves

The emission of Waves is equal to 100 million coins. All this amount is conditionally divided into 2 categories: 85% of the coins were initially sold, and 15% are now in reserve. Although, there is information that the emission of Waves will be reduced in 2021. This will happen after the departure from the PoW algorithm, the transfer of smart contracts and the improvement of the ecosystem within the platform.

So, we have determined how many Waves exist and are in circulation. How does the company manage to maintain the integrity of the platform network? To do this, the developers use a modification of the basic Proof-of-Stake algorithm, which opens up the opportunity for customers to stake their own coins, rent them out to filled nodes that exist on the network specifically for mining. However, the rent is not free. Cost - 0.002 WAVES.

Competition

The very existence in the industry dealing with smart contacts is already associated with colossal competition. Naturally, WAVES also has to compete for a place in the sun, especially since the main competitor of tokens is the largest project Ethereum, which today ranks second in market capitalization after Bitcoin. Platforms such as Lisk and Stratis, NEO and EOS should not be overlooked .

What development paths do developers see in order to take their rightful place in the crypto market? First of all, this is the maximum simplification of the interface and providing the opportunity for as many users as possible to easily use the basic functionality of the platform. Tokens are very easy to create, however, they lack some of the features that tokens created on other competing platforms have. But adding new features should solve this problem.

What is provided by Waves

Many people think that cryptocurrencies are backed exclusively by mining. In fact, this is a myth. The modern world economy has already adopted a digital currency, appreciated its advantages and prospects, and simply will not be able to abandon the crypt in favor of fiat money. Therefore, Waves is provided with its functionality, its relevance and integration into global network programs. Plus, over the past two years, platform leaders and developers have been actively working to ensure that Wavess future is successful. New contracts are signed, promising partners appear.

The future of Waves

The future of Waves largely depends on the future policy of Ivanov and the company. If they manage to correct the existing shortcomings, expand the functionality and adapt the platform to the modern cryptocurrency market , the token has every chance to grow in price and take a solid position among the leaders in terms of capitalization. Our forecast is based on a number of important events that have happened recently. Namely:

In January 2019, information was received that smart contacts are also transferred from the Microsoft Azure Marketplace cloud.
Developers pursue an active policy of attracting new partners and concluding profitable contracts. For example, the well-known developer of bitcoin wallets Mycelium is already using the Waves platform. Plus, the major cryptocurrency portal BitScanPty.
In 2019, the company announced a complete transition to the RIDE programming language, which should eliminate all existing bugs and network failures.
Since 2019, many companies are starting to use Waves tokens in the real economy. Today, agreements are underway for the use of tokens by Gazprombank of Russia, the pharmaceutical company Bioviva, Chronobank, and Incent, which provides services in the field of jurisprudence. And this is just the beginning.

There is an opinion among experts that at the end of 2019 at the beginning of 2020, interest in cryptocurrency decentralized exchangers will grow. Analysts expect the Waves to rise in 2020, up to $ 5. So far, these are only prospects. The exact future of Waves is difficult to predict given the fact that the cryptocurrency market today is very unpredictable.

It is also important to take into account developments in the global market. After all, we all follow the news and know what the hacking of the Japanese exchange led to, and how the developers announcement about the release of their own cryptocurrency affected the cryptocurrency. So, we monitor events, analyze the course and charts, study the plans of the token developers. Only on the basis of all this knowledge can the future of Waves be predicted.