No Room for Copiers: Waves Crypto is on Track to Altcoin Dominance

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Crypto investors know that new coins cost a dime a dozen. You can find hundreds of parts offering the same services over and over again. You will find thousands more that do absolutely nothing. But there is a rarer breed of cryptocurrency that offers a unique product. These are the high-end cryptos: Ethereum (CCC: ETH-USD), Internet Computer (CCC: ICP-USD), Cardano (CCC: ADA-USD). Crypto Waves (CCC: WAVES-USD) is one of them.

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Waves is a blockchain ecosystem built with one goal: to see if existing blockchain technologies can be used differently and better. It seeks to offer everything there is to offer with the blockchain. It features decentralized exchange, smart contract language, non-fungible token exchange (NFT) and more.

More importantly, its products herald an upcoming change in the way people use technology. And as Waves CEO Sasha Ivanov told InvestorPlace, some of the latest innovations in its blockchain network will be at the forefront of this paradigm shift.

Waves Crypto: an ecosystem designed for fun

Ivanov created the Waves protocol in 2016, making it sort of a “legacy chain”. According to Ivanov, Waves is a generalized chain – it adapts to many types of decentralized applications (DApps). One of its first DApps was the decentralized exchange of Waves, or DEX, launched in 2017.

Ivanov praises the Waves blockchain for being completely different from Ethereum and other competitors. Blockchains built on Ethereum use EVM, or Ethereum Virtual Machine, for testing, security, and other functionality. EVM is a layer between the code in a network and the actual machine executing the code, providing structure to the entire network.

However, Ivanov and his team completely knocked him down. “We do everything our way,” he says. “We don’t have GEV. It’s always been like that because it’s always been my idea: to do something completely different. “

Crypto Waves has been able to find its own success by not looking to Ethereum for a commodity. Instead, it uses its own smart contract language, Ride, to structure its contracts and DApps. It has its own decentralized exchange, which the developers are currently preparing to turn into a one-of-a-kind hybrid exchange.

Waves’ New Products Seek to Fill Gaps in Blockchain Needs

Speaking about the new exchange, Ivanov is excited about the prospect of his blockchain pushing back a new envelope. “It’s never been done before, so I’m pretty shy,” he says. “People will see a traditional order book, like Binance’s, but they will be able to add liquidity and, through their own liquidity pool, launch their own tokens.”

The resulting product aims to be an all-in-one way for developers to build and launch their own DeFi products and tokens, all within the Waves ecosystem. It’s ambitious, but it shows where blockchain technology as a whole is heading in the next few years. It is intended to build on the already impressive exploits of the alternative blockchain. In fact, the network’s Neutrino stablecoin (CCC: USDN-USD) has exceeded $ 1 billion in total value locked on the exchange, an indicator of DEX’s rapid success.

Likewise, increasing scalability is less of a problem for the Waves development team than a puzzle for their own enjoyment. “My goal is not to try to reproduce [a] partitioning approach or Layer 2 approaches, but to try to come up with something completely new. It would be really fun, ”he says. Partitioning and Layer 2 solutions are both existing ways to increase the number of transactions per second on a blockchain network; sharding divides the chain into independent shards, and Layer 2 solutions use side chains to reduce transaction bottlenecks on a chain.

This is not something the Waves encryption network needs to pursue just yet with the appropriate scalability of the protocol, but as products continue to roll out, it is something to look forward to. And the few things he lacks, says Ivanov, will happen soon. “We’ll have a full DeFi ecosystem by mid-summer,” he says. As of now, he’s on the right track with this timeline; Waves is rolling out liquidity pools on its exchange very soon, according to a recent tweet from Ivanov.

An inbound shift towards larger blockchain ecosystems

It is through this lens of curious innovation that we see a shifting interest. Users love extended products like Waves because they strive to offer all the products they would need. Other blockchains see this and work the same way.

Internet Computer is another successful example; the blockchain ecosystem offers web-speed transactions and a DApp framework similar to Waves. Ethereum is also working to expand its website, while looking for ways to improve scalability by moving to a proof-of-stake protocol.

The waves are not threatened by these other ramifying ecosystems. This is part of the charm of the different blockchains; everyone is invested in their own community. “We can’t really compete with Binance Smart Chain,” says Ivanov. “They have too much money. But we can certainly fill our own niche.

“A lot of people like Waves because it’s different from Ethereum. And Ethereum’s EVM approach is replicated on Binance’s smart chain. It has its drawbacks, and I think people are looking for something new. We got this, we got a lot of traction with it [our Waves] applications. “

NFTs Seek to Address Blockchain and Real-World Needs

Innovation for the Waves encryption network doesn’t stop with scalability or DApps. In fact, he’s stepping into the realm of non-fungible tokens (NFTs)… and betting that this digital asset class has an incredibly useful future.

“Two years ago, I would have said that all NFTs are scams,” Ivanov laughs. “But, I might be a little wiser now.”

However, Ivanov is skeptical of whether NFTs are truly revolutionary for art. “I’m not sure it’s going to revolutionize [the art market]. It’s just a natural upgrade, it happens and people are using it.

Regardless, its Waves crypto ecosystem implements its own NFT Duck Hunt game, in which users collect unique Duck NFTs which they can breed to become increasingly rare. Top players can find the game to be very lucrative, with the rarer NFTs selling for thousands of dollars. The incentive is already proving successful, locking in hundreds of thousands of dollars in gambling-related tokens.

This game is just the start.

Art can still be replicated, as we have seen in more critical responses to the rise of DTV. That’s why Ivanov sees NFTs entering a more non-fungible space, focusing on things like insurance contracts, deeds, and other important and real documents. In essence, what is considered new in the present could be a way to digitally organize and certify important documents in the future, revealing their true utility.

DAOs bring governance back to blockchain

Likewise, community engagement and governance are likely to see an increase, according to Ivanov. Not much has been done with the space since the Ethereum DAO hack, but blockchain developers are starting to gravitate towards the function again.

For those who are not familiar, decentralized autonomous organizations allow functions such as building trust in crypto communities, as well as expanding and hardening protocols. Essentially, DAOs facilitate functions that benefit from group decision making.

“It would be interesting to try and start a new wave of DAO use,” says Ivanov. “People can raise money to create totally new apps, but we lack a framework for that. I think a new approach to chain governance is going to be very important soon. “

Waves has already taken its first step in CAD with Waves Enterprise. The platform contains on-chain voting frameworks for various functions, such as its decentralized treasury and cash management departments. It is joined by other increasingly popular DAO networks like MakerDAO (CCC: MKR-USD) and network governance functions like Venus (CCC: XVS-USD).

Practical blockchains will lead to crucial crypto evolutions

Sasha Ivanov’s keen sense of progress gives us a glimpse of where the crypto world is going in the years to come. What seems like a fun project turns into robust systems with which one can build websites and smart contracts. Soon, if what Ivanov believes is true, we will see the technological bridge with real world applications.

And it is through this bridge that the cryptos will move.

The asset class is currently teeming with cryptos that exist just to rise in value. But as blockchains like Waves and Ethereum continue to push for convenient decentralized utilities, investors will lean more into cryptos with better “fundamentals.” It’s only a matter of time, and that’s why you should keep Waves crypto on your radar.

At the time of publication, Brenden Rearick had (directly or indirectly) no position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com publishing guidelines.

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