Waves (WAVES)

Waves (WAVES)

Other Coins
August 30, 2018 by matthewrobinson
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What is Waves?   Waves is a fast decentralized exchange that provides fiat onboarding and a system for users to create their own tradable tokens. Waves is already fully functional and can be accessed here. Unlike some other decentralized exchanges, Waves offers some non ERC-20 tokens. What problem does it solve? 1.Users must trust cryptocurrency
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What is Waves?

 

Waves is a fast decentralized exchange that provides fiat onboarding and a system for users to create their own tradable tokens. Waves is already fully functional and can be accessed here. Unlike some other decentralized exchanges, Waves offers some non ERC-20 tokens.

What problem does it solve?

1.Users must trust cryptocurrency exchanges with the custodianship of their cryptocurrencies, which leads to some critical problems. Exchanges can lose their crypto currencies, get “hacked”, or outright steal their users’ money, resulting in the loss of their users’ funds. Additionally, some cryptocurrencies receive airdrops, dividends, or newly forked coins. If coins are held by an exchange, that exchange does not always distributed those coins properly. Lastly, if an exchange has custody over coins for their users’ the exchange has the voting power that is associated with holding those coins. Big exchanges with big wallets can lead to the centralization of voting for new policies of certain cryptocurrencies.

2. Cryptocurrency exchanges are expensive and charge high trading fees. Binance for example charges a trading fee of 0.1% for all trades for general users.

3.  Creating your own cryptocurrency is not that simple on Ethereum or other platforms.

What is its solution?

1.Waves is a decentralized exchange in the sense that it does not hold any of its users’ cryptocurrencies but it does have a centralized order book to execute trades. This means that there is no chance the exchange will lose its users’ funds as long is there are no bugs in its trading smart contracts and it means that their trades will execute just as quickly as centralized exchanges. There is no way for users to lose funds as a result of the exchange’s wallet getting hacked or for the exchange to become insolvent. Users are the custodian of all of their funds, which means that they get to keep voting rights for their coins and continue to receive airdrops as they normally would.

2. Trading fees on the Waves platform are a flat .003 Waves (less than 1 cent at the time of writing this).

3. Creating a token on Waves is the easiest way to create a token. It requires a user to answer a couple simple questions and pay a 1 Waves fee.

How does it work?

As mentioned, the Waves exchange uses a centralized trade matching system to pair trades, so that trades get executed quickly. The coin exchange itself takes place on the blockchain. In this system, the Waves Exchange never has custody over its users’ cryptocurrencies and users can trade cryptocurrencies quickly.

To operate quickly, Waves uses Proof of Stake instead of the traditional Proof of Work consensus method. In Waves’ consensus mechanism, the number of Waves that somebody owns reflects their mining power. The more somebody owns, the higher chance they will process the next block and receive a block reward. Waves is unique in the way that it offers Waves leasing for those who cannot afford a Waves Proof of Stake node (1000 Waves). A user can lease their waves to an existing node and get rewarded for the Waves that they contribute to that node’s stake. Here is a list of nodes that you can lease and contribute your waves to.

BlockWolf Summary

Waves provides a cheap and fast decentralized exchange. Waves offers one of the cheapest trading fees within the exchange industry. Addtiionally, Waves offers an easy way for people to participate in Proof of Stake and an easy way for users to create their own cryptocurrency tokens. Waves is a great alternative to some other cryptocurrency exchanges if a user wants to retain custody over their cryptocurrencies and if they want a cheap exchange.