Smart accounts are the foundation of digital identity.

Smart account is a Waves address with additional functionality, realized through Ride blockchain scripting language. It always has an initial owner, but account control can be shared between different private keys through setting an appropriate account script.

Smart account can be thought to consist of:

Private and public key pair, with the private key providing initial access to account. Private key owner can set an account control script that determines which addresses and on what terms can spend from the smart account (Waves and custom tokens) A custom logic can be set at the account through Ride language scripts. It determines the behavior of account when ScriptInvocation() function (triggering the logic) is applied to it. Data, pertaining to the account, can be stored in it. (For example, some additional private or public data of the account owner, like a copy of his ID)

Thus, we have some kind of a crypto-package, a compound “smart” acclont which potentially can hold all the logic and data that user wants to have on the blockchain. Basically it becomes a digital representation of the user — for example, she can put her government-issued ID as data in it, which can be used for authorization and KYC at certain services. She can set up a script that allows also her spouse to spend from her smart account. Incoming transactions to the account can be automatically taxed, with a fraction of them being sent to a tax agency account.

This scheme is intrinsic to the Waves approach; Waves is meant to provide the basis for mass adoption of DLT technology. It definitely entails putting digital identity into the core, and replacing centralized authorization and private data storage with its decentralized versions.

Smart accounts are already live on Waves; additional functionality allowing to realize custom account logic will be live in Summer, 2019. At the same time a protocol for smart accounts structure and applications is being developed. It will provide a basis for a whole range of applications from social networking to gaming. This is going to be the first step towards a future where all your data is controlled by you, and your private key controls your public identity.

Explicitly granting access to your private data to third parties, fully controlling who and how has rights to access it, retaining control over your digital identity at all times — Waves Smart accounts will provide all of that and more.