Waves, the 2.0 tokens platform, has released custom token functionality on its testnet ahead of the upcoming public release.
Billed as “blockchain for the people” and the “ultimate tokens platform”, Waves has raised $16m through crowdfunding earlier this year, and going on the testnet means the platform is entering a new crucial stage of its development.
Waves has a vision for an open network that will be used by individuals and businesses of all kinds. Core to this vision is the creation of tokens on the Waves blockchain to any specification, lending them to a wide variety of applications.
Whilst previous 2.0 platforms have allowed asset creation, Waves founder and CEO Sasha Ivanov insists the platform offers greater flexibility and versatility than ever before.
“By enabling not only custom token creation, but asset-to-asset exchange in the core, we will make it easy to trade any token against any other. This is itself is very powerful, but a secondary implication is that it’s possible to pay transaction fees in any currency. That’s critical for the user experience and it brings greater simplicity to commercial applications. If you are sending US dollars, for example, you don’t want to be paying fees in a different currency – it adds unnecessary friction to the process,’ says Ivanov.
Notably, the requirement to pay transaction fees in native currency has been limiting functionality of earlier platforms such as Counterparty, which requires fees to be paid in bitcoin.
The lynchpin of the Waves ecosystem
Waves’ custom tokens will form the foundation of what the platform aims to achieve in the coming months and years.
“Once we have viable token creation, it’s straightforward to build new services on top of that,” continues Ivanov. “Financial companies can launch their own fiat-backed tokens, which can move around the world on the blockchain quickly and at low cost. KYC (Know Your Customer) regulation is applied at the point of entry and exit from the blockchain, according to the company’s jurisdiction.”
Once this stage has been completed, applications like decentralized crowdfunding and remittance services become possible.
“Organizations will be able to raise money in many different currencies – Bitcoin, dollars, euros, and so on – and exchange them with minimal costs for whatever currency they need to pay their bills,” says Ivanov.
Whilst custom tokens are key to Waves’ appeal, the platform’s roadmap ultimately includes far-reaching functionality including decentralized reputation systems and a form of smart contracts.