Let’s take a closer look at why the Waves protocol is causing some motion in the crypto ocean.
Blockchain applications are, for all the froth and hype about potential utility, still in their infancy. Legions of great developers are scrambling to build decentralized applications for blockchain ledgers, and users hunting utility for their tokens are trawling emergent ecosystems to find the blockchains that best fulfill their needs.
What Is Waves?
Built to be environmentally friendly, but still fast and economical, Waves looks to give individuals and businesses an easy way to create, deploy, and use tokenized smart assets, while clearly demonstrating the benefits of blockchain technology to enterprises.
The native language Ride is friendly to beginner developers and comes with an exhaustive how-to booklet and git support. The ability for developers to create their own branded tokens — known as ‘colored’ $WAVES tokens usable only with their DApp, as well as the ability to forge smart-assets, assets that must meet preconditions in order to be traded, allows for nimble, community-driven ecosystems that serve particular business functions to flourish on the platform. Its enterprise focus is cemented by its strategic partners like Deloitte and Microsoft.
How Does Waves Work?
Waves has undergone many changes in its lifespan as the project tries to keep its blockchain competitive. Major changes in this time include the change of a static 100 million supply to an inflationary supply in 2019 (in order to reward block miners more effectively).
The reward of 6 $WAVES per block is adjusted every 10,000 blocks by 0.5 $WAVES in either direction, as voted on by the DAO. This, as well as a host of upgrades to Rust and other WEPs (Wave Enhancement Proposals) put forward by the community’s DAO, have led to an evolving network.
In support of this, Waves has announced grant initiatives to US-based developers to the tune of $150 million to pump innovation on the platform. Also up for an overhaul is the DAO, which seeks to reward those who more actively participate in decision-making and proposals — giving users ‘skin in the game’, as they call it, rather than just passively rewarding large token holders who vote irregularly.
What Makes Waves Unique?
In order to provide an intuitive, accessible platform for developing smart assets and novel decentralized applications, Waves leans on a variety of unique properties and features to help it appeal to users and developers alike. These include:
Waves DApps or smart contracts have a fundamental difference to other blockchains: they are not (or don’t have to be) Turing complete. This limits the absolute scope for the type of products that can be built on Waves but serves to focus the work of the community within a precise lens while simultaneously massively increasing the security of the chain and allowing for greater scalability.
Ride Programming Language
The Ride programming language has been created from scratch to serve Waves. It is very similar to the F# by design, a language with extensive use in quantitative analysis, machine learning, and business intelligence. This further increases the security of the chain while making it accessible to existing F# developers.
Waves currently operates a Leased-Proof-of-Stake model whereby token holders can lease their tokens to nodes to give them a better chance of being chosen to mine the next block, and earn a dividend from doing so. Moreover, nodes can mine ‘liquid’ blocks, where transactions can be continually processed and added to the ledger while the next key block is being made, helping to improve throughput.
Simplified Token Creation
Token creation is extremely easy, and cheap, on Waves. Currently, a smart contract for a token costs about 1 WAVE (currently ~$26). There are 107 million different tokens in circulation, all of which can be traded on the Waves exchange. It gives start-ups a chance to fund within a very safe, secure, enterprise-minded ecosystem.
Crest of the Wave
Continued upgrades and investments, including Gravity Bridges and EVM compatibility, will help draw more developers to its ecosystem, inspired by the fact that although the apps are not Turing complete, they are all-the-more secure for it and thus can welcome applications like sensitive personal data, open finance, and gaming with no fear of scalability or security being an issue.
Though Waves may be flourishing among enterprises, it is also gaining popularity among independent developers appealed by its low transaction cost, speed, and low barriers to entry.