Waves (WAVES) is a very complex and promising ecosystem. The base layer of the platform is the Waves blockchain where users can create their own custom tokens using plugins, such as, loyalty programs, in-app currency creation or ICO funding. After creating a new token, it can be traded on the Waves decentralized exchange.
For example, the Waves blockchain can transact one custom token against another custom token. In essence, tokenization and trading of any asset is, therefore, possible on the blockchain. An example from the whitepaper is the trading of tokenized national currencies, so with the custom token tied to the USD, I could trade that for the custom token tied to the Japanese Yen on the Waves blockchain.
The Wave Client is the dashboard where you can create tokens, receive tokens and trade on the DEX. This system might be less complicated for ICO-creators as the ERC token is relatively complicated, whereas, the Waves token is a “rideon” token.
“With Waves, a token is like WAVES itself — they are treated the same and are held in your address. Plus of course, the platform supports token creation in the core and from the standard Waves wallet. Then the tokens created can immediately be distributed and traded on the DEX, with no further work. It’s a far more streamlined and useful approach,” said Ilya Smagin, Head of Waves smart contract Dev team.
The broader project raised $22 million by selling these native tokens in 2016. The tokens are also used to run smart contracts and incentivize node operators on the Waves blockchain, a model similar to ethereum. Users can either pay a fraction of a WAVES to transfer tokens or buy a token, or you can spend 1 WAVES to create a new token on the network.
When the actual DEX launched it had 90,000 traders transacting $6M in Bitcoin a day, which dwarfs comparables DEXs. According to Waves’ internal data, on June 23rd alone DEX traders swapped Waves tokens for $1.59 million worth of bitcoin and $251,697 worth of monero, just to name a few. “Our blockchain is quite fast,” he said, claiming Waves can process 500 transactions per second. “We have a very active Brazilian and Turkish community, you can even trade a token Lira on our exchange.”
Recently, the company has partnered with Deloitte to standardize the token process along with some other keyp players in the industry through the creation of the Tokenization Standards Assocation.
The Association has been registered in Switzerland, and although it’s an effort between Waves, Deloitte and ICO Governance Foundation, it also counts on the expertise of leading Swiss law firm Bratschi and liquidity provider Altonomy to put up better standards in place. Speaking about this new effort Waves founder and CEO Alexander Ivanov, who’ll also serve as the Chair of TSA, said:
“Regulation is clearly an emerging phenomenon and concern in the crypto space. If certain jurisdictions have not yet announced their intentions, then it’s only a matter of time. Waves has always been clear that regulation – the right kind of regulation – is a good thing for the crypto space. We have also been clear that we want to be a part of that emerging dialogue. We want a seat at the table to be able to shape the future of regulation in the ICO and blockchain space.”