There's a common misconception that Waves is a rival for Ethereum. That would be akin to, just as falsely, portraying IOTA as a rival to Ethereum. They're as similar as chalk and cheese.
Ethereum is strictly an application platform, which allows Dapps to be built on its infrastructure governed by self-executing smart contracts.
Founded by a Physicist from Moscow, Sasha Ivanov, Waves is a platform for crowdfunding and payment systems on the blockchain, facilitating asset issuance, transfer and trading currencies.
How Waves Works?
The Waves infrastructure provides highly functional, yet simple and intuitive tools allowing anyone to create their own tokens on the platform. Both individuals and organizations can tokenize any digital asset without intricate coding knowledge. All that is required to create a token is at least one WAVES token.
As we've seen all too often for our liking, security and reliability is a major concern when it comes to cryptocurrency exchanges. Although cryptocurrencies are decentralized, the exchanges are centralized entities with a single point of failure. Most of them operate without even the most basic oversight and are at risk of frequent security failures.
Waves has a built-in decentralized exchange, DEX, in which user assets never leave their wallet, ensuring that users retain control over their funds at all times. DEX uses a matcher which stores orders and executes trades. Orders are transferred through an encrypted channel and not visible to other participants until execution. The commission per order on DEX is a fixed fee of 0.003 WAVES.
Waves uses a proof-of-stake consensus protocol. Mining power is determined by WAVES tokens held by a user, thereby chances of mining a block and receiving the fee as a reward.
Rewards across the entire network are distributed proportionately, and depends on network activity and fees generated. In addition to receiving transaction fees as a reward, miners also receive 60 MRT/block for first 70 blocks per day and 30 MRT/block thereafter.
MRT(Miners Reward Token) is a bonus token for each block mined. It is intended as a means for new token issuers on Waves to reward nodes for processing transactions. MRT can be traded on DEX for other tokens/currencies.
Waves holders can also profit on their balance without downloading the entire blockchain through LPoS(Leased proof-of-stake). LPoS allows an account holder to lease his WAVES to a full node and receive a share of the rewards. The percentage of share is determined individually by each node.
Leased WAVES remain in full control of the account holder and can be sold or exchanged at any time.
Waves Brain Wallet
Android, iOS and Chrome extension wallets for Waves can be downloaded from Google play, itunes and Chrome web store respectively.
Waves Lite Client web wallet can be downloaded from https://waveswallet.io/
Desktop wallet can be downloaded from Github – github.com/wavesplatform/WavesGUI/releases
Waves uses a Brain wallet, which has no .dat file which stores private keys. A 15-word seed generated during creation of a new wallet functions as the only way to recover an account. DO NOT lose the seed.
During account creation, users are asked to create a password for their wallet. The password is used to encrypt the seed to ensure that the seed never gets broadcast to the network unprotected.
Custom seed creation is possible using the ‘Import Account' option. Entering a custom wallet seed using this option creates a new wallet using that seed. However, it is strongly recommended that users make use of the proposed seed instead of creating a custom seed.
Immediate features in the pipeline are non-turing smart contracts, hardware wallets, shapeshift, decentralized voting and messaging. Later plans include atomic swaps and turing complete smart contracts.
Waves Platform update
On December 13, Waves announced that it is set to launch ‘the most powerful and user-friendly blockchain platform in existence', Waves Client 1.0, following 18 months in incubation.
The new client features a completely redesigned interface, intended to enhance the user experience to a point where it compares favorably with the best online banking and trading platforms.
Every feature of the original wallet has been redesigned to ensure it is as straightforward to use as any other traditional online financial application, including the token launcher and leasing tab.
“Our frontend developers have succeeded in creating an information-rich UI that is nevertheless uncluttered and unthreatening, rendering it perfect for newcomers and crypto experts alike,” boasted Waves founder and CEO, Alexander Ivanov.