Because of its safety, speed and efficiency, Waves has become the go-to blockchain platform for storing, trading, managing and issuing digital assets. Crypto startups such as BehaviourExchange use it to issue its tokens and to guarantee a safe and smooth ICO.
How Waves work
While cryptocurrencies such as Bitcoin and Ethereum can be traded on external exchanges, and Ethereum allows users to create new tokens on the platform using a smart contract, Waves includes this functionality in its core software and wallet. Users can create, transfer and exchange blockchain tokens on a peer-to-peer basis, paying transaction fees in the native WAVES token.
Waves increases effective bandwidth and speed of block creation, which is especially significant for businesses using the platform since it allows for conducting micro transactions — without any delays that are typical with traditional blockchain systems. Furthermore, it allows the platform to withstand high loads, such as distribution of tokens following crowdsales and airdrops of bonus tokens. The speed of processing trading transactions on Waves decentralized exchange (DEX) is increased as well.
Traditional blockchain model vs. Waves
The financial journalist Roger Aitken wrote about the difference between the traditional blockchain model and the NG model which Waves is based on in a highly informative article for Forbes. He explains that in a traditional blockchain model, blocks are discovered at roughly similar intervals and the most recent transactions are processed once a miner has earned the right to submit them to the network. As such, this places fundamental limits on the capacity of the blockchain. In the NG model, however, the next miner is selected in advance. The miner creates a “key block”, which is then immediately filled with microblocks containing transactions, which requires no further proof-of-work.
Whilst maintaining the open structure of the protocol, Waves enables transactions to be confirmed as fast as the network will allow. Waves’ proof-of-stake approach is said to further improve speed, and thereby increasing capacity by a factor of a hundred or more, it is claimed.
Alexander Ivanov, CEO and founder of Waves, commenting in relation to the development said: “As a platform of mass adoption, it is critical that we should be able to support a high throughput of transactions, whilst maintaining robust security. NG lays the foundations for our next phase of growth and a step-change in the size of the ecosystem we can support.”
BehaviourExchange to use Wave for upcoming ICO
BehaviourExchange will launch its BEX tokens on the Waves platform, providing two major benefits for token contributors: Waves is the fastest decentralized blockchain platform and its transaction fees are low. The current Waves transaction fee is 0.001 WAVES, which at the time of writing amounted to 0.01 USD. With numerous useful applets, such as browser faucets and web faucets, the platform will enable BehaviourExchange to quickly meet the roadmap goals after the token sale. You can find out more in the BehaviourExchange whitepaper.