Platform for Customizable Token Creation
The Waves platform AG is a self-developed decentralized blockchain platform that offers a range of services including custom token creation, as well as currency storage and exchange. Their primary goals are to create a peer-to-peer exchange platform that has relatively fast transaction rates, as well as to provide new platforms with the tools to create tokens for ICO crowdfunding purposes, at an affordable rate. As yet these tokens to not have smart contract programmability but can be used as normal cryptocurrencies.
While there are other platforms that offer similar services, the Waves platform differs in that it uses a Proof-of-Stake mining algorithm that doesn’t require excess computing power to create new blocks in the chain. Rather, it is designed to allow nodes to mine at a faster rate based on the amount of WAVES that they either own or have leased from another user.
Waves Platform – The Opportunity
The Waves platform will be implemented as a decentralized token storage and exchange platform with centralized transactions. This means that there will be two aspects to their security structure, as user token holdings will be secure against external attacks or interference while token exchanges will occur through a secure platform. Furthermore, through the centralized trading protocol, users will be able to trade tokens and currencies that would otherwise not be directly tradable, such as bitcoin for Ethereum or ERC20 tokens.
The primary benefits are:
- The Waves platform is ultimately going to be decentralized, meaning that attacks and disruptions from third parties are less likely to occur, thereby making tokens created on the platform relatively safe.
- Custom tokens are extremely easy to create, thereby making crowdfunding that much simpler for new ICOs.
- No experience or knowledge is required for the production of custom tokens.
- The creation of new blocks in the network are conducted through a Proof-of-Stake, rather than Proof-of-Work protocol. This means that node miners will have greater mining power based on their WAVES token holdings, rather than their computing power. This will make it much cheaper for miners to produce stakes.
- Mining rewards are issued as Miners Reward Token (MRT), rather than WAVES. Therefore, there is no cap to the amount of MRT that will ultimately be produced. This means that it will be a sustainable reward system.
- Users can lease out their WAVES to mining pool nodes in order to gain MRT indirectly, without needing to download and run the mining software.
- Mining pool nodes are beneficial for everyone on the system, as the more WAVES held by the node, the higher the rate of transactions. This means that the more that individuals team up together to mine, the higher the overall network transaction capacity and speed will be.
- Transaction rates are low at 0.0001 WAVES per transaction.
- Able to process thousands of transactions per minute.
- WAVES offers a stand in-token trading option for BTC and ETH holders, as the Waves platform offers WBTC and WETH tokens for purchase. Each of these tokens is backed by real BTC and ETH that is owned by WAVES, thereby allowing users to purchase and trade these currencies without the latency and costs that are generally incurred on other blockchains and exchange platforms.
Waves Platform – The Limitations
- Users need to own 1000 WAVES before they become eligible to participate as mining nodes. This seems to limit mining access only to more affluent network users.
- This incentive could also lead to acquisition and hoarding of WAVES tokens by a limited number of major players, which could negatively impact the decentralized consensus algorithms in the future.
Waves Platform’s WAVES Token Utility
WAVES have a 100 Million token cap, and can be used for transactions, trading and custom token creation. One WAVES token is required to create custom tokens. It appears that there is no limit to the number of token that can be created at one time, but there is an 8-decimal limit for each token. The user can also select whether their tokens will have a cap or can be republished. Each transaction costs 0.001 WAVES.
Waves Platform’s Other Useful Tokens
- WBTC – This token is backed at a 1:1 ratio with real Bitcoins. Its utility is that it allows for the transactions of Bitcoin at a far faster rate than other platforms.
- WETH – Same as above, but with Ether.
(as of May 6, 2018)
April 12 – May 31, 2017
1 WAVES = ~$0.188 USD
~$16 Mill USD
100 Million WAVES
1 WAVES = ~$6.91 USD
Current Market Cap
~$691,2 Million USD