As is the case with most currencies, to truly understand a coin one must first know where it is used - and what purpose it holds.
What is $WAVES?
Waves is a blockchain platform that you can use to create your own custom token. Users can create their own custom token for a range of applications- from crowdfunding a project to building a loyalty rewards program,creating an in-app currency, payments platform or tagging collectibles, the Waves platform can be used for all these cases.
You can create your own token in less than a minute on their platform. Waves also includes a decentralized exchange (DEX) in which you can trade your newly created coin in a trading pair with any other Waves token.
How does $WAVES platform work?
Users use the platform to create and transfer their coins as attachments on blockchain transactions. Using the typical blockchain protocol, as seen in Bitcoin, the network client software needs to update with each new transaction type. This update is more commonly known as a hard fork.
As we are aware, a hard fork carries a huge number of risks and technical work.
To prevent this, Waves implements new transaction types through plug-ins as an extension on top of the core software. That way, even if a client is missing the plug-in, it can still relay the custom transaction through the network. They can effectively still participate in the network without updating their software.
There are a handful of features included in the core Waves software:
- Custom Application Tokens (CATs)
- Decentralized exchange (DEX)
- Smart Contracts
The technical architecture of $WAVES differs from other blockchain projects are using. Waves has a two-tier architecture with both lightweight and full nodes maintaining the network.
The founding team of WAVES started this project rather than forking NXT. The team emphasizes on inherent Fiat Integration.
Overall, waves is a blockchain platform that provides an easy way to create your own token and take advantage of simple blockchain functionality. The platform is best suited for people looking to run a crowdfund or create a simple loyalty coin for their business.
Waves has its value because of its simplicity. Anyone can create a customized token with a few clicks and little knowledge of the underlying technology. Beyond straightforward token creation, Waves also operates a decentralized exchange.
The team is currently working on improving the speed and network usage, this could see more adoption in the coming future.