Waves Platform - Crypto Academy S5W7 - Homework Post for @imagen by @blessingkasabe
Introduction
Leased Proof-of-Stake (LPoS) is a modern version of the Proof of Stake algorithm mechanism used on the waves blockchain network. LPoS allow users to lease out tokens to full nodes in order to earn rewards obtained from payouts. This consensus mechanism permits users to lease out tokens to miners so that mining nodes share the rewards with the leaser.
The leased proof of stake consensus mechanism allows users to make a profit in mining cryptocurrencies without even participating in the mining process. The Leased Proof of Stake doesn't require a node to keep a particular amount of tokens before a block is mined unlike in the case of the Proof of Stake consensus mechanism.
How the Leased Proof of Stake Consensus Mechanism Works
Transaction in the waves blockchain network can be validated by full nodes only whereby the validators are being chosen from the owners of full nodes with respect to their stake. For one to be qualified in participating in the mining process, the full node owner must be assisted by a lite user in order to select a validator through leasing of WAVES tokens.
There are two types of transactions in Leased Proof of Stake (LPoS) and they are:
Leased transactions:- This type of transaction is those that activate the leasing tokens process. Here, the holder of the token initiates the lease transaction, states the token amount of the lease, and also states the node address of the lease.
Leased Cancel transactions:-This type of transaction is what cancels a leased process that is already in process or is about to be processed.
Characteristics of Leased Proof of Stake
The following includes some of the characteristics or features of the leased proof of stake.
Fixed Token:- The token of leased proof of stake is fixed and also leasable. The tokens of proof of stake are leased and locked such that there are not transferrable nor tradable unless the leasing process is halted.
Transaction fee is used in rewarding users:- The transaction fees in leased proof of stake are used in rewarding miners for the blocks processed on the blockchain network.
Decentralized:- The Leased Proof of Stake is decentralized. This means that no third party is involved in its dealings. The rewards in leased proof of stake are linearly shared to miners according to the amount staked.
Advantages of Leased Proof of Stake
The following includes some of the advantages of leased proof of stake;
Higher and faster processing Speed:- The leased proof of stake has a higher and faster processing system in that it doesn't consume much time in validating transactions because of the use of a few nodes in the validation process.
Low energy-consuming:- Another important advantage of the leased proof of stake is its less energy consumption. In leased proof of stake system, a single node can be used in processing transactions, unlike the other consensus whereby high computational power is required before which tends to consume high energy.
Make profits with just a few Tokens:- The leased proof of stake enhances users to earn rewards by just leasing the little tokens that possessed to full node owners for rewards. Rewards from full nodes owners are shared and some percentage is given to the token holder.
Differences Between the Leased Proof of Stake and the Proof of Stake (PoS)
| Leased Proof of Stake | Proof of Stake |
|---|---|
| In the leased proof of stake system, the production of the next block depends on the number of tokens leased, the higher the amount the more it becomes easier to produce the next block by the full node owner. | With Proof of Stake, every node has a specific amount of coin it holds that is required to produce the next block in the blockchain. |
| In the leased proof of stake consensus mechanism, users can transfer or lease out WAVES tokens to other users via their wallets. | In the Proof of Stake consensus mechanism, there are some constraints in transferring WAVES tokens so as to avoid attacks in the blockchain. |
| Users are able to lease out their tokens to miners and they have the right to choose whether to accept the leased tokens or not | In the Proof of Stake consensus, validators are selected with respect to the number of tokens staked and this is somehow unfair. |
I would like to sign up and begin with the exploration of the waves platform. The following steps indicate how I signed up for the wave platform.
Step 1:-
First of all, we would visit the website of the waves platform waves.exchange.com.
Step 2:-
From the homepage interface, click on Sign Up to continue
Step 3:-
From the three options provided, I would select Email and use my email account to sign up.
Step 4:-
I would then enter my email account and my password after which I would then enter my password again to confirm it. I would then tick and agree to the terms and conditions of the website. After which I would then click on Create Account to continue.
Step 5:-
I would then drag and match the slide at the exact position to complete the puzzle provided.
Step 6:-
I would then enter the verification code sent to my email to verify my account. After the verification is done, I then clicked on Log In to log into my account.
Step 7:-
I then click on Continue to log in after confirming all my details entered and then verify myself with the puzzle code.
My account has been successfully logged in as shown below.
Functionalities or Options in waves.exchange Platform:-
Now we would start with our exploration of the waves. exchange platform. There are four functionalities or options available excluding the wallet option. I would be exploring these four functionalities including the wallet option of which I would be starting with.
The Wallet Option
This option provides users the access to make deposits of tokens as well as withdraw tokens. It also provides users access to create tokens. It also displays the balance of tokens of a user. It again displays all the available tokes on the waves exchange platform.
The Buy Crypto Option:-
The Buy Crypto option is one of the functionalities of the wave exchange platform that permits users to buy USDN with either a credit card or Debit card. With this option, users can purchase many other cryptocurrency assets including stablecoins, BTCm WAVES EGG, etc using the Debit or Credit card.
The Trading Option:-
This option provides users the access to exchange one token for another through swapping. It also provides spot and Defo swapping. The trading option displays the chart of crypto assets and also provides easy access for users to make a quick buy or sell trade on the platform.
The Pools Options:-
This option allows the holders of WAVES tokens to stake and earn rewards on the wave.exchange platform. It also permits users to vote for governance on the platform. It also provides users the access to participate in IDO and Early Birds programs.
The Investement Option:-
The investment option grants users the access to invest in different investment opportunities and they include the following; Waves Staking, Neutrono Governance, Neutrono trading, Lambo investment, Algorithm trading, and Neutrono pools.
The Different Investment modalities that one offers to users:-
The following includes the different modalities investment that I can offer to my users;
LP Staking
Liquidity Pools
Lambo Investment
Algorithm trading
Waves Staking
I have chosen the above investment modalities because I have a firm belief that my users can earn more profits and income when they invest in those platforms.
I made my purchase of the WAVES token using my verified Binance account and the following steps were taken.
Step 1:-
First of all, I open and log in to my verified Binance account. From the homepage I then clicked on Trade.
Step 2:-
I would be using USDT to purchase so I would search WAVES and then select the WAVES/USDT pair to trade
Step 3:-
I then use the Market Price order to make this purchase so that I can buy it faster. I then enter the amount of USDT as 10.43 USDT to buy the WAVES token.
I then click on Buy WAVES to make my purchase.
The trade was executed immediately after I clicked on Buy WAVES. We can see the purchase I made in my Spot account below as shown in the screenshot.
To transfer the WAVES asset from my Binance account to the waves.exchange official platform the following steps are to be considered.
Step 1:-
First of all, I would log in to my waves account from the official website and copy the wallet address just below my account profile as shown below.
Step 2:-
I would then log in to my verified Binance account and click on WAVES asset and then select and click on Withdraw.
Step 3:-
I would then paste the wallet address copied into the Waves address space option provided. I would also enter the number of waves to transfer and then click on Withdraw to confirm.
Step 4:-
I would then check the details of the transactions and then click on confirm to execute the transaction. It can be seen that a fee of 0.002 WAVES would be charged for the transaction. You would have to confirm and verify your exchange account using the 2 steps verification process whereby you would be required to enter the codes that would be sent to your email and phone number you used to register the Binance account before the transaction would be fully executed. Enter each code in the spaces provided to confirm your transaction.
- We can see that it has been successfully been transferred to the official waves.exchnage platform and it's worth $10.49 now.
The WX token is the native token of the waves.exchange ecosystem. It is very important to the waves.exchange platform because it serves as the native governance token used on the platform. Since 2017, the WX token has been in existence and is currently available in the crypto market.
The WX token has been successfully been implemented on other cryptocurrency exchanges, gateways, and also some investment tools.
The WX token was launched in November 2021, to achieve a stable and strong decentralized waves platform. The launching of the WX token was also to solve issues regarding liquidity, market making, and many others. WX token has 8 non-reissuable decimal.
Functions of WX token in the Waves Ecosystem:-
The following include some of the functions of the WX token in the Waves ecosystem;
The WX token can be used for investments by investing in liquidity pools products and many others within the waves ecosystem.
The WX token is used in trading other tokens that are verified on the waves platform.
Also, the WX token is used in paying trading fees at a low and cheap rate in the waves ecosystem.
The WX token can be used in staking in LP tokens within the waves platform.
The Value and Market Capitalization of the WX token at the time of writing this article:
Form coinmarketcap.com website, at the time of doing this assignment the value of WX token is at $1.69 and a market capitalization of $11,186,884. It is also ranked at 4516 with a 24h trading volume of $75,250. From the analysis done on the coinmarketcap.com website, the price of the WX token has depreciated by 4.88%. A screenshot of the values above is shown below.
The Waves Ducks Project
The Waves Ducks is a decentralized project that is developed onto the waves blockchain network. It is an NFT (Non-Fungible Token) that allows users to play games and earn on the platform. The native token of Waves Ducks is the EGG token and it is this token that is used in awarding users for playing the NFT waves ducks game on the platform. This token (EGG) can also be used in purchasing more NFT ducks in the game and also be used in purchasing other available collectibles on the platform.
What the Project is About
The waves ducks as we said is a decentralized application that operates on the waves blockchain network provides a very low transaction fee of 0.005 WAVES when performing any transaction on the platform. The waves ducks project allows users to possess assets on their own and that is why it uses NFTs in rewarding gamers on the platform.
The waves ducks project is created in a manner in which it permits users to develop and create their own ducks empire on the blockchain network. The waves ducks project is more focused to building more collectible digital ducks images on the platform in NFTs. The ducks can be shared among other users on the platform. Also the ducks collected by users can be breeded to earn more valuable items on the platform.
How is waves ducks accessed?
In order to access the waves ducks, you have to first of all, create your own waves.exchnage account and I have already done that in the previous question. After creating your waves.exchange account, you then click on the link below to access the wavesducks platform.
Once you have your account ready, click on the line to open the waves ducks platform wavesducks.com.
Click on Start Playing and then log in your account.
Enter your email address and password and then click on log in to access the waves ducks platform.
My account have been logged in successfully and it's shown below in the screenshot.
Little Exploration of the Waves Ducks Platform
Conclusion
To conclude, I would like to summarize what have been done in this article so far, we first discussed the concept of leased proof of stake consensus mechanism after which we looked at the differences of the LPoS and PoS and also someadvantages of LPoS.
In addition, we created waves.exchange account and logged in and explored the platform to the fullest. We also showed the functionalities of waves.exchange platform and I also indicated the investment modalities that I would offer to my users. Furthermore, I made a purchase of 10 USD from my Binance verified account. We also looked at the WX token and its functions in the waves ecosystem. We also looked at the value and market capitalization of WX token.
Finally, we discussed the waves ducks project, what it's about and also how to access it by showing screenshot.
I would like to say a very big thank you to professor @imagen for this wonderful lecture. I have really understood the concept of "Waves Platform".
Thank You.