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Speed and simplicity. Despite a few years of dynamic market activity in the Cryptocurrency space, these two factors are absent in many Blockchain projects. To create a token on a blockchain protocol is still an arguably complex process. Processing of transactions on the blockchain is also a relatively slow process, especially on Blockchains that run on the Proof-of-Work (POW) consensus.

By creating a platform that is simple to use and with processes being executed at a fast speed, Waves is making a strong push for mass adoption on its platform. Read on to find out more about the Waves platform and how this project fits into the crowded Blockchain protocol space.

Tokenization For The Common Man

One of the main functions of the Waves platform is that it allows you to create and transfer any tokens using the Waves blockchain. These tokens can be used for a few purposes, such as crowdfunding for your business or loyalty tokens to enhance customer retention for your business.

This is something that was difficult to achieve, as when adding a new transaction type, the network client software will have to be updated through a hard fork. Hard forks require a lot of time and effort, and even then, it still carries significant risk. To tackle this, Waves introduces plug-ins as extensions to the core software, bringing third-party developers into the ecosystem. This creates an ecosystem which facilitates the trading of custom tokens against each other without heavy investments of time and resources.

While the simplicity of the Waves platform was praised by many, it was also a source of criticism, with critics stating that there were limited smart contract functionality on the Waves platform. In September 2018 Waves announced that they have introduced a few smart contract functions in this post. The main features were the introduction of multi-sig addresses, token freezing, atomic swaps, voting, and Oracles. This may bring users that initially wanted more smart contract functions to the Waves platform.

Speed Through Two-tier Architecture

The Bitcoin approach is to synchronize a distributed system through common transaction logs. This results in a slow transaction speed, as every node will have to store the full history. To mitigate this, Waves has implemented a two-tier architecture and lightweight client feature.

Under the two-tier architecture, there are two kinds of node, namely the full node and the lightweight node. The full node processes and stores all the transaction history, whereas the lightweight node uses the current network state and depends on the full nodes for transaction confirmations and interactions. This will speed up processing of transactions.

WAVES Tokenomics

There are currently 100 million WAVES tokens in circulation. The Waves platform runs on a Leased Proof of Stake (LPoS) system, whereby the lightweight nodes will lease their WAVES balance to full nodes that they trust, to earn WAVES tokens through staking. According to the WAVES whitepaper, this does not mean an account transfer, as a lightweight node can always transfer its balance to another node. As more tokens are staked, the supply will be lowered, increasing the value of WAVES tokens in circulation.

In addition to staking, the WAVES tokens can be used in the Waves Decentralized Exchange (DEX) in trading of custom tokens.

WAVES Team and Partnerships

The team is led by CEO Sasha Ivanov, a Russian technology influencer. Sasha was initially involved in the NXT project but decided to improve on its perceived flaws, such as speed, user interface and the lack of an option to trade against other tokens outside of NXT. You can find his sharing in the following Forbes article.

Waves announced its partnership with Microsoft Azure

In addition to the team, Waves has made significant partnerships that suggests that they are moving closer towards mass adoption. In 2017 Waves partnered with Deloitte, with the focus of developing a legal framework for the wider adoption of blockchain technologies. Recently Waves has announced a partnership with Microsoft as well, making its smart assets and smart account functionality available on the Microsoft Azure platform.

Waves Wrap-up

While there are many current players fighting for a slice of the blockchain protocol pie, the selling point of Waves is in its simplicity in implementation and the speed of their blockchain. When more functionalities and more partnerships with reputable tech companies are added, Waves will be a step closer towards reaching their goal of becoming a platform for the masses.

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Disclaimer: The above article is a brief overview of the WAVES project and is in no way an endorsement of WAVES from ABCC Exchange or financial advice in any form. Users are reminded to carry out their own due diligence and execute trades based on their research and risk tolerance.