Waves is a multi-purpose blockchain platform that offers an all-encompassing gateway for Web3 technologies such as decentralized applications (dApps) and smart contracts. Founded in 2016 by Sasha Ivanov, a technology entrepreneur, Waves is renowned for its variety of products and services including its own programming language (Ride), native crypto exchange (which offers a variety of staking options), and more.
Not only this, Waves entails a developer-friendly infrastructure with an array of innovative tools. The Waves blockchain is designed for daily use as it enables the users to create and launch custom crypto tokens without the need for extensive smart contract programming. But, how does this well-oiled machine work? Let’s find out.
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Connecting your Waves Address to ZenLedger For Your Crypto Tax Forms
- To import your Waves transactions into ZenLedger for your crypto tax forms, all we need is your public address.
- Select the proper blockchain or wallet from the dropdown list.
- Paste your address into the address field in ZenLedger.
- Select if the wallet is based in the USA or not.
- Then hit the ADD COIN button
Technicalities of Waves Crypto Explained
There are several nuts and bolts in this machine that, combined, make Waves blockchain a really competitive and formidable Web3 infrastructure that encourages interoperability and total decentralization in the blockchain landscape. So, let’s start with the one thing that powers it all, the WAVES token.
What is WAVES cryptocurrency?
The WAVES cryptocurrency is the native currency that drives the Waves crypto ecosystem. The WAVES token provides security to the Waves blockchain and powers the Waves decentralized exchange or Waves DEX.
In turn, the Waves DEX runs and maintains the Neutrino protocol, a multi-asset, crypto-collateralized toolkit that allows the tokenization of real-world off-chain assets. The protocol removes any friction associated with decentralized finance (DeFi).
Coming back to the WAVES token, its holders get governing rights over Waves DEX and up to some extent, over Waves blockchain as well. Moreover, the WAVES token is awarded to the block generators via block rewards and transaction fees. Incentivizing the generators encourages participation, honesty, and network growth. If a block generator holds more WAVES tokens, they have a higher chance of adding new blocks to the blockchain.
Ride is a programming language developed by Wave to reduce any potential errors that lead to serious faults. Alongside Waves’ other technologies, Ride allows developers to seamlessly interoperate with other blockchain-based applications leveraging the Integrated Development Environment (IDE).
Ride is a non-Turing complete language designed to develop smart contracts. Even Bitcoin, the first-ever blockchain, was built using a non-Turing complete language, Script. The language’s inefficiency to support smart contracts led to the development of Ethereum, which uses a Turing-complete language that supports smart contract creation.
Ride was designed to apply scripts to assets and accounts on the Waves blockchain. The applications developed using Ride within the Waves crypto ecosystem are highly secure and predictable.
The Waves network runs on the Leased Proof-of-Stake (LPoS), which is a new consensus mechanism that facilitates network participation from all WAVES token holders. Token holders can select whether they want to run a full Waves node or lease their tokens toward full nodes to earn a reward.
This protocol determines which node can produce the next block in the blockchain. Waves-NG is based on the first idea that was proposed for Bitcoin but was later rejected. This protocol divides Waves blockchain into two types of blocks: “Micro blocks,” and “Key blocks.” A randomly chosen PoS miner creates a Key block and then other nodes use a public key in the block to create Micro blocks that contain transactions.
Gravity is a decentralized, blockchain-agnostic cross-chain oracle network powered by Waves. Gravity works with WAVES token economics meaning Gravity users can easily access data from multiple blockchains.
On this network, developers can access real-world data and existing oracles from various blockchains or better yet create their own data sets and oracles, without the need to create a new token. This enables simple and frictionless cross-chain data transfers and makes Gravity an underlying technology for “interchain DeFi,” allowing developers to create a multitude of decentralized finance products.
How to Buy WAVES?
Waves is an excellent way to diversify your crypto portfolio as it competes with Ethereum but stands apart as a distinct player in the cryptosphere. Here is how you can buy WAVES, step-by-step:
Step 1: Open an Online Account
To buy WAVES or any other cryptocurrency, you need a crypto exchange account. You can buy WAVES from exchanges such as Coinbase, eToro, Gemini, and more. First, you’ll need to provide some personal information such as:
- Full legal name
- Phone number
- Copy of government-issued ID
- Banking information add funds to your account
Once you open an account, you need to add sufficient funds from either your credit/debit card to buy WAVES. But first, you need a wallet.
Step 2: Buy a Wallet
A crypto wallet lets you store your tokens in a safe place and gives you more control over them. There are two types of wallets you can choose from – a software wallet and a hardware wallet.
A software wallet is a mobile or desktop application that is free to use but it must be connected to the internet for you to access your tokens. These wallets are affordable but offer less protection. A hardware wallet, on the other hand, stores your crypto tokens on a physical device making them significantly more secure. If you plan to hold your tokens for a long time, a hardware wallet is the right choice.
Step 3: Buy WAVES
After setting up your crypto exchange account, adding funds to it, and buying a wallet, it’s time to buy the WAVES token. Once you’ve bought the token, store it safely in your chosen wallet.
The Waves blockchain is a versatile ecosystem offering a gateway to Web3 development. The network offers a myriad of DeFi products that enable the adoption of blockchain. Also, with Ride, Waves provides freedom to developers to develop secure decentralized applications and along with the WAVES token, the network is all set to compete with large smart-contract enabled blockchains.