To allow users to develop and launch custom crypto coins in the world of cryptocurrency exchanges, the Waves blockchain was designed. This network enables the creation and trade of cryptocurrencies without the requirement of extensive smart contract programming. Instead, tokens here can be controlled through scripts that run in user accounts on the blockchain.
The notion that this blockchain follows is that the development of new tokens (and the applications that manage them) should not considerably differ from establishing a traditional web application. To fulfill this objective, programs and applications function as attachments to these transactions, and fresh assets are allocated with a unique identifier. Only, at the creation of the asset, scripts can be affixed.
These assets are built to be exchanged inside the Waves ecosystem, which has its own built-in decentralized exchange called Waves Exchange. It was developed to initiate trade among coins made on the Waves network with other WAVES tokens.
The Waves team instituted smart contract functionality to their Waves MainNet, allowing third parties to develop decentralized applications (dApps) in the year 2018. In addition to the statement, the team further began to promote the Waves Enterprise (a version of the platform created for institutions) in 2019.
After getting to know what Waves is all about, let’s take a look at how it works.
How do Waves operate?
Lightweight and full nodes are the two types of nodes that run the software of the Waves blockchain. A complete history of the transactions is maintained and recorded by the full nodes, whereas the lightweight nodes rely on the full nodes for information regarding transaction authorization and interactions taking place inside the network.
Waves utilize a variation of the proof-of-stake (PoS) consensus mechanism known as leased proof-of-stake (LPoS) to regulate the syncing of its distributed network.
The Waves LPoS Blockchain
Any node that makes the choice to lock up crypto tokens is eligible to add blocks to the blockchain in a traditional proof-of-stake model within the cryptocurrency exchange world. The probability that a node will be able to add a block generally decreases or increases depending on the number of tokens a node has locked in a specific contract.
Nodes also have the choice to lease their balance to full nodes with the use of LPoS consensus mechanism. This notion implies that when a full node is chosen to create the next block and is compensated, the node that charters coins to that selected node earns a payment share in the payout.
Waves-NG is a protocol that ascertains which node receives the right to develop the next block. Additionally, it is also a modification of an idea initially proposed (but neglected) for Bitcoin (BTC).
It divides the Waves blockchain into two types of blocks that are micro and key blocks. Key blocks are developed by a randomly selected proof-of-stake miner. A public key present in this block is then utilized by the other nodes to build several micro blocks which contain transactions.
At the centre of the Waves network, lies the ability to create ‘Smart Assets.’ The Ride is a programming language native to Waves, which provides a script for tokens. Just by attaching a script, any coin can be given functionalities. Not to mention, the execution of the scripts costs around 0.004 WAVES.
The subsequent transfers and tokens are done as attachments which are added to transactions as the Waves network permits its users to issue coins without the need of having any programming experience.
With the help of plug-ins, that are installed as extensions on top of the network, different transactions types are introduced.
Waves coin is quite a good investment option for investors as it has been showing an upward trend for the last few years. If you are looking to purchase this coin, you can buy it from one of the best cryptocurrency wallets in India i.e., WazirX.