WAVES Open-blockchain financial platform. Blockchain for the people.
WAVES is a decentralized platform that uses custom blockchain tokens to represent value. Tokens can be issued by any platform user, and can be transferred, swapped, and traded on an integrated decentralized exchange. Tokens may represent a share in a crowdfunding project, financial instrument, or any other item with inherent value. Traditional centralized crowdfunding and trading platforms rely on a third party to maintain the platform, thus sacrificing transparency and becoming prone to failures due to over-centralization. Blockchain technology allows the elimination of any centralized point of failure, storing all the platform data on all system nodes in a distributed fashion. It makes fully decentralized trading, crowdfunding and value transfer possible.
WAVES also makes it possible for traditional financial institutions to issue and support blockchain tokens representing national currencies and financial instruments. This connects WAVES to the world of traditional finance, allowing KYC/AML-compliant business practices supported by decentralized technology. It offers traditional institutions access to blockchain technology with low maintenance costs, providing transparency and access to new markets.
Our new website is currently under construction, please keep tuned for news and announcements on our social media channels!
Follow this link for instructions on how to withdraw your ICO tokens and find links to our Alpha Lite client releases below:
- #header-wPop-backup: Standardized paddings. (8ca5e60)
- #seed-whitespace-popup: Applied bolded and uppercase txt to the choices of the new dialog description. (63883ed)
- #seed-whitespace-popup: Fixed some bugs and finished standardized style. (6d9eb06)
- buttons, popup texts: Fixed some differences between buttons across GUI, fixed padding in some notices. (88908bc)
- html: Fixed duplicate transaction table identifiers (3a45a62)
- #mBB-token: Created new tab for Custom Tokens, added custom scrollbar ++ (19d138d)
- account: notification when seed has trailing whitespace characters (37b5548)
- address: address generation is done on lite client (4cc44a6)
- wallet: transaction fee validation change (3d2f4d2)
- Performance Improvements
- SVG: Improved several SVG files size and performance. (13e1a0a)
App tokens revolution. CATS are coming!
There’s some hype rising around appcoins recently, and I’d like to give our perspective on the subject. Waves is all about custom tokens, this is what we’re focusing on, and that’s we want develop as a major use-case. On the other hand it should be developed in the right direction, otherwise it can just fizzle out, regulators will be all over it, scammers could use the approach for their nefarious purposes etc.
So let’s define first what appcoin, or apptokens, or custom application specific token is. Let’s use “Custom Application Tokens” name, or just CATs. I must say that I don’t really like appcoins, it is focused on monetary aspect mostly and has already had its portion of bad press a while ago.
Apptoken or CAT is a cryptographically secured transferable blockchain token used as an integral part of application functionality, having a certain intrinsic value established at open market.
Let’s break the definition down a little.
Cryptographically secured means that classical public key cryptography is used to maintain the ledger, that is a token holder controls her tokens as long as her private key is not compromised (since the token is transferable)
Token is actually an entry in a public ledger. Its interpretation goes beyond the ledger itself, and has to be determined externally, through applications that use the ledger. It is integrated in the application functionality, which can be done in different ways.
Intrinsic value is attached to the token through application integration. As long as the application provides some value the related token has some value too.
The actual token value is subject to price discovery at open market, that emerges naturally for blockchain systems. Their decentralized nature is conducive to emergence of trading platforms on top of them, also blockchain systems can have internal trading functionality.
That all might be pretty abstract so let’s provide a quick example, showing how versatile this approach can be. Let’s say we start a social network and want to raise money for its development. We can launch an internal currency for our network, issuing a token on a public blokchain. Having it on a public blockchain might me be crucial, since its provides transparency and creates trust. Internal currency can be transferred within the network, certain services can be paid for with ut, and we make a commitment to provide a network-wide banner advertisement for, say, 100 tokens. If our network is successful it grows in size, we have a bigger user base and the ads, bought by advertisers, are shown to more people. It means that our token value has to rise too, since advertisers get more bang for their buck.
Through issuing this coin we provide a valuable service for our social network users (value transfer), raise funds for development and even provide an investment vehicle. We’re able to raise funds directly from the crowd and social network users, who can see the value in the network since they use it. We don’t have to go to VC’s, we cut the middlemen and appeal directly to our users.
It’s a very basic example but hopefully you can get the general idea. The nature of the tokens may vary, what unites all the different approaches is token integration into some external application and intrinsic value being determined through a certain price discovery mechanism.
Of course the first example of CAT’s is Bitcoin native token and native tokens of thousands of cryptocurrencies that came after Bitcoin. In this case application is blockchain itself, native token is instrumental for existence of open blockchain systems. Such tokens can be called native CAT’s.
Soon after Bitcoin emergence people realized that blockchains are nothing else but a distributed ledger, and, as such, it can store entries related to more than one token. So custom tokens emerged (NXT, Bitshares, Ethereum, Waves….). Their usage might be quite versatile, and is basically determined by an external application that uses them. They are just CAT’s, and the scope of their usage is limited by imagination only.
Besides their usage in applications what attracts most people to custom tokens is their usage for fundraising. Cryptocurrency ecosystem has created so-called ICO (initial coin offering) scheme. Native tokens of a new coin are sold to investors, proceeds are used for development, and investors hope to make profit if the new cryptocurrency is successful. ICO’s are booming since it is pretty well defined scheme to raise funds for a blockchain related projects. Custom tokens will allow to expand ICO’s approach to cryptocurrency projects to a wider class of projects. Your application has to use a custom blockchain token as a part of its functionality, and there should exist a certain mechanism connecting the application success to the token value.
The benefits for fund-raising are obvious, by addressing your user base you get not only money but also feedback, testers, and promoters. Crowdsale-type fundraising might be much easier to execute than usual VC-based investment, and, on top of that, each dollar raised through it is more valuable, since you get added value from your community. This is a fledging market which can turn the whole venture investment business around.
Of course there are many obvious obstacles along the way. Custom tokens can be used basically for everything, but if you use them for fundraising you can’t use them for all types of projects.
Let’s list certain approaches that should NOT be used.
You can’t promise to pay dividend to the token buyers. It’s a securities offering. If you really need to do it go to Securities and Exchange commission and file for IPO.
Tokens can’t represent equity in your company without approval from corresponding regulatory bodies. You can attach certain voting rights to them (meaning for example your users can decide on the development direction), but you can’t connect them to equity without proper legal backing.
You can’t issue tokens and promise to buy them back with a premium later. It clearly constitutes a security offering; read up on Howey test.
CAT’s are essentially a digital product with flexible value; you don’t break any laws if you sell them. They should be used in a working application, or at least in a mature prototype. They are NOT securities without proper registration with corresponding agencies, attempts to use them as securities are basically doomed and can be detrimental for the whole ecosystem.
Please use CAT’s responsibly and they will become established as a major fundraising vehicle and can make tons of new projects a reality. We might experience a paradigm shift in business practices, it’s all still quite fragile so special care should be taken so we don’t get off the right track.
I’m confident that in near future many new applications for new tokens will appear. Think about the way CAT’s can be used in YOUR application, you might come across some new and terrific idea.
Why CATs are the immediate future of crypto adoption
TL;DR — The immediate future of blockchain adoption lies in the most basic form of cryptocurrency applications: ‘AppCoins’ or CATs, custom application-specific tokens.
Mass adoption for blockchain-based money and a handful of other applications is just around the corner, albeit with many more on the way in the medium term. The first forms of widespread crypto will be almost as simple as it gets. Whilst technically nothing out of the ordinary, these ‘appcoins’ or ‘apptokens’ will give rise to distinctive new forms of economic activity, and pave the way for more complex use cases.
Last month I wrote an article titled Blockchain’s Third Wave is going to be fun. Without rehashing it in detail, the basic tenet was that blockchain tech has matured significantly over the last couple of years — and, as importantly, so have the entrepreneurs and communities growing up around this suite of new platforms. Bitcoin started as a geek project (Wave Zero) and was established as the blockchain protocol from around 2011 (Wave One). 2014–15 were blockchain’s proving ground, a harsh but highly productive Cambrian explosion of innovation (Wave Two). We’re now entering Wave Three, which will see meaningful application and mainstream adoption. After the frantic creativity of the last couple of years, what’s interesting about this coming phase is that it’s far less about technology than it is about synergy and business relationships.
Custom application tokens (CATs)
Whilst the crypto world is still a Petri dish of innovation and evolution (and yes, you can grow some pretty unpleasant things in Petri dishes, as well as discovering Penicillin), there’s just a small number of projects that I think currently have a shot at real adoption. Many more are coming, of course, but right now they are comparatively few and far between. The big ideas are starting to break through into the mainstream, but it’s still early days.
There is some really cool stuff you can do with blockchains, though the use cases and full implications aren’t entirely clear just yet. Smart contracts, for example, are an amazing idea, but we’ve learned the hard way that Ethereum might not be quite ready for mass adoption. Realistically, it might be another five years before we start seeing those applications in our daily lives — whether we recognise they’re there or not. It’s a question of baby steps, and right now the applications are using just about the most basic functionality there is: the ability to transfer tokens on a peer-to-peer basis, outside of any centralised control. Companies are after nothing more than what bitcoin has been doing for almost eight years.
Take the Incent project, which I’ve been involved in for two years. It’s a custom asset on the Waves blockchain: about the simplest form of token there is. If you’re creating an apptoken, you can go about it in different ways. You can create your own blockchain, probably by cloning bitcoin. That gives you complete control over network parameters but leaves you with the job of actually creating the protocol, as well as securing and maintaining the network — not something most businesses will want to get their hands dirty with. You can create tokens on bitcoin using a protocol like Omni, which is a little like cleaning your ears with a biro lid — people do it, but it’s not what it’s designed for and some tend to view it with a degree of distaste. Alternatively, you can use a 2.0 platform that is expressly designed for the purpose, makes it really easy and ensures that you have all the flexibility you need to create a token that will do the job you need it to. Waves makes launching custom tokens really easy.
Appcoins, Apptokens, Custom Application Tokens (CATs) — whatever you decide to call them, this is where the immediate future is for crypto adoption. It’s a simple application for crypto with obvious benefits in particular situations.
AppCoins or CATs are already starting to see mainstream adoption, and it’s not hard to see why. In the vast majority of cases, complexity is the enemy. It’s not the unique properties of a specific blockchain that are needed. It’s the properties common to all crypto: fast, low-cost, peer-to-peer transfers without third party involvement or intervention. And critically, being able to access those features with a minimum of effort.
Take the growing interest in money transfer on the blockchain. This has been pioneered by companies like Tether, though there is a vast ($600 billion) remittance market waiting to be revolutionised. Fiat transfers are a major strand of what Waves will offer; ‘gateway’ companies will hold funds in audited, insured accounts, and will issue tokens representing dollars and other national currencies. These will move freely around the world on the blockchain, with practically zero friction.
Technically, these tokens are nothing special. They are Waves CATs, and have no intrinsically noteworthy properties above any other cryptocurrency. What matters for businesses is that they can be created and used quickly, easily and cheaply — something at which Waves excels. Moving money around on the blockchain could bring enormous efficiency savings for big companies like Amazon, eBay and Google, let alone smaller businesses that struggle with the time-consuming and expensive problem of shifting funds from one country to another.
This approach will be used by far more than banks and financial institutions to offer the ability to move fiat currencies around frictionlessly and borderlessly. There are as many applications as there are industries and sectors. Gaming companies frequently struggle with the problems of moving large amounts of money into and out of in-game economies; a native token for this solves many problems. Crowdfunding suffers from issues including high costs for cross-border transfers and an inability to exit a stake easily, something a custom tokens would solve instantly. CATs offer much for the music industry. Tokens representing a subscription in a magazine; a credit that can be redeemed for goods or services; in-app payment methods. Not a single one of these has to be any more complicated than the most vanilla crypto token.
Keep it simple, stupid (KISS)
Thus it is the very simplest of crypto solutions that is poised to hit the mainstream. We can over-complicate things here in crypto land. The world isn’t ready for smart contracts, zero-knowledge proofs, sidechains or most of the other cool stuff we’re routinely conversant with. For now, CATs — the most basic functionality — is all that’s required for mass adoption.
As Jon Evans writes in a recent TechCrunch article, ‘What interests me most about cryptocurrencies is neither the “crypto” nor the “currency” part. What interests me is that they are decentralized, permissionless services, which rely on — and thus can be curtailed by — no central controller. People say the Internet is about disintermediation, but in fact an astonishing amount of our online activity is conducted via the five Stacks: Amazon, Apple, Facebook, Google, and Microsoft. The notion of disintermediating them some — now that’s interesting and disruptive.’
WAVES Weekly Update:
We are fully prepared technically for full nodes launch in the coming days, and are discussing the release with our partners, so that they are also ready. The last few days have been a busy time, with different conferences and a hackathon. Although we are aware that our community is keen to see full nodes launched, we took the decision to delay it from the weekend in order to give the process our full attention — since this is something that should only be done once! Like you, we look forward to using a fully decentralised, stable and secure network in the coming days. Updates will be posted on Slack to begin with.
Conferences and Events
Digital October, where Waves has its new offices, is providing plenty of opportunities and there have been several major events for Waves this week. 8 November was the Blockchain School, at which Sasha delivered the Crowdfunding on the Blockchain seminar. Two days later was the Blockchain & Bitcoin Conference Russia, where he gave the seminar Blockchain tokens in business and finance. You can see Sasha in discussion in this (Russian language) video, taken whilst recording material for a radio interview, in which he talks about the use cases for blockchain at the current time.
The other event is hackathon http://hack4people.ru/ that took place at Digital October over the weekend, November 11–13. Waves team presented decentralized 2FA prototype during the hackathon, the source code is available already on GitHub.
You may have noticed a series of articles and posts about CATs. These are Custom Application Tokens, Waves’ name for appcoins. Based on observation and experience, we believe that these simple tokens are a major use case for blockchain, and very likely the first frontier for mainstream crypto adoption. Waves will be working hard to make it easy for anyone to create, transfer and trade their own CATs, which have applications from fiat gateways and loyalty to crowdfunding, music downloads and digital sales.
Waves Weekly Crypto Roundup
We have another edition of our WWCR film, with Grace Watson. Guests this week include Steven Grove (@sigwo), founder of the Darcrus project, and Sergey Sergienko from the ChronoBank initiative — both of which will be launching tokens on the Waves network.
Press and Articles
Waves Releases Full Nodes and Assets-Waves weekly
This week we celebrate the launch of full nodes and asset creation! We realise this has taken longer than originally planned, and thank the community for their patience. Final bugs were fixed last week but with the large number of conferences and other events taking place in Moscow, we felt it was better to launch this week when we could give it our full attention.
The launch took place in stages, with full node code first being provided to Bittrex, as well as running on our developer nodes. We carefully monitored the network and, once we were satisfied that all was running smoothly, we made the code available to the community. Anyone can now download and run a Waves node.
Full Nodes Resources
You can run a node on a Windows, Linux (Ubuntu/Debian) or Mac machine. The latest releases (currently v0.3.4) can be found at https://github.com/wavesplatform/Waves/releases/.
There is no minimum number of WAVES required to run a full node. However, if you want to generate blocks then you will need a minimum balance of 10,000 WAVES. There are plenty of resources for those who want to run a node (read the installation guide here), but it is expected that mostly it will be more experienced users who will do. In due course we will release balance leasing, which will allow anyone to lease their WAVES to an active node and receive rewards from block generation.
You can always download the latest versions of the Lite client from https://wavesplatform.com. Please be aware that there have been issues with a fake github repository claiming to offer v0.4.4 of the Lite client. The latest version is v0.4.3a.
With a fully decentralised network and the ability to create custom tokens, Waves’ core functionality is in place. In the short term, the next step is to make this functionality more widely available through the Lite client. This is currently in development. At present, businesses are still able to create their own assets via the API, but most users will not want to do it this way and it will be far easier to send and view asset balances when the Lite client supports this.
Custom tokens are also fundamental to one of Waves’ flagship propositions, fiat gateways. Gateways require little in technical terms beyond the ability to create and transfer assets, with much of the work concerning compliance and administration. We expect the first gateways to start this work soon and will keep the community updated about progress.
Further milestones involve the DEX (decentralised exchange), which will allow trustless asset-to-asset trading. This will also make it possible to pay transaction fees in the same token that is being transferred — for example, USD can be used to pay the tx fee when sending USD. We will also incorporate encrypted messaging, which will likely be an off-blockchain solution for greater security and to reduce bloat. Balance leasing will also allow us to move to a leased proof-of-stake (LPoS) model.
Further down the line, functionality such as voting, a decentralised reputation system for assets and even a form of smart contracts will be added.
Waves Weekly Crypto Roundup
The latest episode of the Waves Weekly Crypto Roundup with Grace Watson has been released. This week, we have a new organisation giving us an overview of the bitcoin markets. We also have a new section on crypto startups.
Press and Articles
Testnet Lite client v0.4.4 (2016-11-25)
This release is for TESTNET ONLY. Mainnet version of the Lite client will be released soon!
Completed migration to AngularJS 1.5.9
Introduced npm and bower for dependency management.
Created a core library to be reused in alternative clients (coming soon).
Implemented asset issue functionality by adding two new tabs: Portfolio and Tokens.
style: Fixed display of the dialog and buttons for asset transfer and confirmation (619a408)
style: Eliminated unnecessary line breaks on the create seed screen (ca4617e)
style: Revised hover effects on Portfolio table (dd056dc)
style: Created new set of CSS rules for the token creation tab (05ffc44)
style: Restyled elements on the Token Issuance area (6eff1fa)
style: Applied non resize-ability to seed field (573d8b0)
style: Fixed styling of the confirmation dialog on SEND WAVES. (6080f2a)
style: Balance amount in SEND WAVES dialog fix. (36f281e)
style: Created new class for all headers (bf255d6)
html: Eliminated .jurl element and adjusted GUI in consequence. (6e69889)
navigation: Slightly changed behavior of navigation icons. (4d24da2)
address: migrated copy address to clipboard feature for tables with transactions (6282cde)
address: remove 1W address prefix (8ab2ddd)
assets: add an asset details dialog (b57c154)
assets: add an asset transfer dialog (8234110)
assets: add asset reissue (9c98c0f)
assets: add controller stub for the asset issuance form (8e6cc03)
assets: add form for asset creation (16abbc6)
assets: asset transactions are displayed in transaction lists (d1ee486)
assets: complete asset transactions generation (a5a1878)
focus: add a directive for setting focus on default fields in forms (709a6fb)
login: new wallet name must be no longer than 16 chars (6bb34c0)
portfolio: add asset's attributes display (fb04bb7)
portfolio: asset listing on portfolio tab (a4fda81)
tooltips: migrate tooltips to a new directive - tooltipster (3b6e8c5)
wallet: prevent from accidentally send a single payment several times (6a8d9d2)
history: couldn't copy addresses in the transaction table (b90d042)
portfolio: reissue button was always enabled (79acf4c)
scrollbars: Attempt to re-establish the previous state on scrollable areas. (5f67d50)
style: remove account's outline which appeared on click (2f81a5f)
style: remove tab icon's border when it has focus (9aed4e6)
wallet: transfer transactions are correctly shown (9d6c6ce)
wallet: wallet dialog fee and amount validation fix (d572c14)
lists: added track by expression to improve list rendering performance (6b6606a)
CoreMediaRadio interview with Waves Founder Sasha Ivanov
WAVES Weekly No. 19
It’s been a quieter week after the recent slew of conferences and events, then last week’s launch of full nodes, but there’s still plenty going on. Our developers and team of community testers have been monitoring the network to ensure that everything is running smoothly, and the first assets have been created using the API. You can gain an overview of what’s going on with the network by taking a look at http://wavesexplorer.com/, which shows recent blocks and peers. You can also download the Lite client from https://wavesplatform.com. Please do not download it from any other source, because there have been issues with a fake github repository.More experienced users may want to run a full node. The latest releases can be found at https://github.com/wavesplatform/Waves/releases/tag/v0.3.4. Any user can run a node, but you will need at least 10,000 WAVES to generate blocks. You can read the installation guide here.
Updated Lite Client on Testnet
The new token functionality is currently being integrated in the Lite client. You can find the latest version at https://github.com/wavesplatform/WavesGUI/releases/tag/v0.4.4 — please do download this and assist with testing if you are able to. You can also find the testnet lite client at http://testnet.waveswallet.io/.
After the last mainnet update, the new Lite client is to be released with asset functionality on mainnet. The next stage will be leasing transactions and Waves’ DEX (decentralised exchange).LPoS (leased proof-of-stake) is designed to allow increased throughput and greater security. Vanilla PoS has some theoretical security issues. PoS — as implemented in Nxt, for example — has never actually been compromised, but some critics claim that this is simply because there was never a great enough incentive to do so. For Waves we want to have a system that is secure from a theoretical point of view. In due course a tech paper will be published for peer review. For greater scalability we will be using our improved authenticated data structures, leading to a more compact blockchain.Two-factor authentication will offer users greater security still, and we also expect to see the first fiat gateways early in 2017. Alongside this Waves will be releasing a dividend plugin to enable issuers to distribute crowdfunding tokens, and a mobile wallet for use on the go, with asset functionality built in. The mobile wallet is currently in testing mode, so this will not take long.In the next few months, we will therefore have a comprehensive production-ready system that will be very attractive to the many businesses that routinely approach us for help with crowdfunding and other proposals.
The release of full nodes and custom token creation means that businesses can start issuing and using their own CATs. Incent, a new kind of loyalty platform, is one such initiative and one of the first enterprise cases for the Waves blockchain. Incent has been running its own crowdfund, which is due to end on 30 November, and has so far collected more than $1 million in BTC and WAVES.With the imminent release of updated Lite client, we are now in a position to support business development and are talking to numerous organisations behind the scenes. It is Waves’ belief that mass crypto adoption will come initially through very straightforward functionality, by making custom tokens accessible to ordinary businesses.We have also been talking to more exchanges about adding Waves. This tends to be a relatively slow process, since decisions are carefully considered and reputable exchanges will always conduct a code audit before making new coins available — especially when they are built on a completely new codebase, like Waves. The community will appreciate that we cannot talk about specific partnerships with businesses or exchanges until these have been agreed. Anyone who has a business project and would like to work with Waves is invited to join our Slack to discuss it further and for technical assistance. Please email [email protected] for an invitation.
Press and Articles