Waves 101

Answers to the most frequently asked questions about blockchain and our protocols

What is Web 3.0?

Web 3.0 is a concept of the form the Internet will take in the future, powered by decentralized technologies — particularly blockchain. It is a vision of online services based on a decentralized and trustless model, maintained by users and code rather than by large centralized entities.

What is this ‘trustless’ model?

This term is well-known within the blockchain world. It indicates that transactions are made without trusted intermediaries such as Uber or Airbnb. Control over the conditions and execution of an agreement are enforced by code, not companies.

What is blockchain?

Imagine a ledger of accounts that is duplicated on thousands of computers. All the copies are fully synchronized, and every record is approved by each computer and remains unchanged forever. Everyone can check the validity of any record. Broadly speaking, that’s what a blockchain is.

What are a SEED phrase, private and public keys?

While anyone can read information from the blockchain, to write to the blockchain you need to own the correct private key.

A private key gives you access to your account and signs transactions from that account. In practice, a private key is a random sequence of letters and numbers that is inconvenient for users to remember. That’s why we hold the private key in the form of a SEED phrase.

A SEED phrase is a set of 15 words that acts as a private key. You receive the SEED phrase when you create an account. You will need this SEED each time you import or recover an account to a device. A public key is generated from the private key (and thus there is no need to remember it). A public key is used to check the validity of signatures.

An address is your account identifier. Share it to receive tokens in your wallet.

Remember: if you lose your SEED phrase, there is no way to recover it. Your SEED phrase and the private key associated with it should be kept secret. If someone discovers them, they can steal all of your funds

What are dApps?

A decentralized application or dApp is an application whose backend code runs on a blockchain. Simply stated, it is blockchain-based online service. There is therefore no centralized database to hack or be compromised. dApps combine all the advantages of online services with complete control of your data. Everyone can build and use dApps.

How can you participate in Waves Ecosystem?

There are several ways to use the protocol:

  • Maintain the network via mining WAVES
  • Lease your WAVES to mining pools to support the network
  • Build dApps and other solutions for Web 3.0 development
  • Use dApps built by third-party developers

How can you mine WAVES?

You can run a full node and start to mine WAVES straight away. You decide how and where to set up your node — here are links to instructions. Each node that holds at least 1,000 WAVES (either itself or in leases) is eligible to get a chance to add the next block to the blockchain and get some WAVES to their balance.

What is leasing and how do you lease WAVES?

If you don’t have enough WAVES tokens to run your own node, you can lease WAVES to a different node and get a part of their block award paid a percentage of the rewards they collect. Alternatively, you can set up a node and seek leases from other WAVES holders to reach the required amount.

How can I learn to build decentralized solutions on Waves?

We regularly conduct workshops and hackathons worldwide. You can find out more in our social media channels.

We also run free educational courses for anyone interested in acquiring hands-on knowledge of Web 3.0 technologies. Feel free to join Web 3.0 course on Coursera.

Finally, you can learn via the tutorials on our developer portal.

How to get WAVES?

See full list of available markets here

Does Waves have SDK?

Yes, Waves SDK is a diverse collection of tools, products and components. You can create your blockchain-empowered applications and smart contracts from scratch, using structured and comprehensive client libraries and toolkits.

Which wallets are there?

There are 3 dapps for storing and managing for your crypto assets: Waves.Exchange, WavesFX, Sign.

What is Ride?

Ride is Waves’ functional purpose-designed smart contract language for dApp development, designed for applying scripts to assets and accounts on the Waves blockchain, as well as creating sophisticated programmable logic for the decentralised environment. More questions about Ride were answered at Q& A session with RIDE Developer Ilya Smagin.

How many project have been implemented already? What are the projects?

There are hundreds of projects of different types: fundraising, dApps, infrastructure solutions, end-user products, etc.

There are extensive community resources dedicated to Waves Platform dApps. One of them is dApp Ocean.

What is Waves Smart Account?

Waves uses account-based model, there are no inputs and outputs of transactions like in some other blockchain networks. All assets and data associates with an account and bound to its' public key. The main idea is that before the transaction is submitted to be included in the next block, the account checks if the transaction meets certain requirements, defined in a script. The script is attached to the account so the account can validate every transaction before confirming it.

What are Waves Smart Assets?

Issuing a token on Waves Protocol is simple as filling out a form and clicking a button. The token will be available for trades on Waves based decentralized exchanges immediately. But in some cases it is needed to apply custom logic to the script — lock trades, allow only white-listed accounts to hold, etc. Smart Assets allow you to do it by attaching a script to a token. The script is written using Ride language.

What is Waves-NG and how does it increase the network’s speed?

Waves-NG enhances decentralisation and security, making the Waves blockchain the most technologically advanced and user-friendly to date.

What is Neutrino protocol all about?

It is a cryptocurrency protocol for issuing stablecoins and synthetic assets. In other words, it is a specification that lays out the principles of implementation of a token tied to an asset, such as the US dollar. The core aim of the protocol is to release a token which is backed by so-called collateralization, where a native token of a public blockchain platform, such as Waves, is used as a reserve currency locked on the smart contract.

How is USDN collateralized by WAVES tokens?

The backing of the USDN token is stored on the smart contract of Neutrino and can be replenished (“issuing USDN”) or exchanged back (“redeeming WAVES”) for Waves tokens at a price corresponding to the 1 USDN: 1 US Dollar ratio.

How much can I earn on staking USDN?

The interest rate for staking USDN is floating. The amount of earnings depends on when the staking started, on the amount of staked USDNs out of the total USDN supply, and on the changes in Waves market capitalization. On average, the annual yield is within the range of 8–15%.

What is Gravity? What is the main goal of Gravity protocol?

Gravity is a blockchain-agnostic protocol that handles communication of blockchain networks with each other (interchain) and with the outside world (through data oracles). It is focused around interchain communication, establishing a solid foundation for the creation of gateways and cross-chain applications and providing a solution to blockchain scalability challenges through the mechanism of sidechains.

Is Gravity an open source protocol?

Yes. Development of Gravity is managed as part of open source development flow by Gravity developers.