Introduction to WAX: A Decentralized Marketplace for Gamers
The Worldwide Asset eXchange (WAX) stands out as a pioneering decentralized marketplace, primarily catering to video game enthusiasts and the trading of virtual collectibles. It is the first protocol that allows gamers to possess their assets genuinely, without being reliant on any service provider or network.
WAX: The Premier NFT Marketplace
WAX is a blockchain platform engineered to facilitate scalable e-commerce transactions. It employs a delegated proof-of-stake (DPoS) consensus mechanism. Through its native WAX token, users can engage in a fully functional virtual marketplace. The platform was initially developed to accommodate over 400 million active gamers in the e-sports arena who sought to trade in-game items. By addressing the existing centralization in the gaming industry, WAX offers a decentralized solution for users to swap, buy, sell, and trade their digital assets. This innovation marks WAX as the first platform of its kind dedicated to video games and virtual collectibles.
Launch and Leadership of WAX
WAX was unveiled in 2017 by industry veterans William Quigley, who now serves as CEO, and Jonathan Yantis, the current COO. Both possess extensive experience in the digital products sector. Yantis was a trailblazer in virtual goods as early as 1997, and Quigley founded WAX after his tenure at OPSkin, the largest marketplace for digital item trading. The platform’s Initial Coin Offering (ICO) in December 2017 achieved a remarkable market cap of $1.2 billion by January 2018.
WAX’s Blockchain Capabilities
The WAX blockchain employs various mechanisms to enhance speed, scalability, and overall system performance. It also supports backward compatibility, allowing it to work with older systems and enabling developers to transfer their decentralized applications (dApps) from EOS to WAX. With a block time of just 500 milliseconds and zero transaction fees, the network incentivizes participants through rewards for selecting block producers and enhancing the protocol.
Operational Mechanism of WAX
The functionality of the Worldwide Asset eXchange is grounded in several core principles. The protocol utilizes microservices layers alongside a DPoS consensus algorithm, where designated block producers, known as WAX Guilds, oversee block production. This consensus method enhances the potential of honest nodes and boosts the efficiency of dApps on the blockchain. Token holders have the ability to elect WAX Guilds, who can produce tokens if they receive community support. Blocks are generated every half-second, although timing is crucial; missed schedules can delay production, causing gaps that may hinder performance. To mitigate this, WAX Guilds do not receive rewards if they produce less than half of their scheduled blocks.
Smart Contracts and RNG in WAX
Smart contracts are vital to the WAX ecosystem, employing a blend of smart contracts and a Random Number Generator (RNG). RNG, which produces random outputs, is utilized by dApp developers to create unpredictability in asset outcomes, such as NFTs or collectibles. WAX’s RNG is designed to overcome common issues with traditional RNGs, ensuring fairness and true randomness. It allows developers to seamlessly integrate this service into their dApps through a secure public-key cryptosystem. This combination of smart contracts and RNG provides a robust infrastructure for processing transactions on the WAX blockchain, with all transactions recorded transparently.
WAX Token: Functions and Benefits
The WAX token serves as the currency within its ecosystem for exchanging and purchasing NFTs. Key functionalities of the WAX token include staking, rewards, and voting. Token holders can stake their WAX tokens using compatible wallets like Sqrl, Scatter, or Lynx, which also permits them to vote. By connecting their wallet to their WAX account, users can cast votes for up to 30 WAX Guilds, with the voting power determined by the amount of WAX tokens staked. Staking also yields rewards, allowing users to earn additional WAX through their participation.
Voting Mechanism in WAX
The WAX protocol incorporates a unique voting system that consists of three types: guild voting, proxy voting, and worker proposal voting. In guild voting, users stake a set number of WAX tokens, thereby assigning an equal number of votes to guild candidates. Proxy voting allows users to appoint a proxy to vote on their behalf using their staked WAX, which can also earn rewards. Worker proposal voting enables users to support proposals from other token holders by staking WAX tokens. A challenge for DPoS blockchains is voter apathy, which can undermine decentralization efforts. WAX’s Staking Rewards system aims to combat this by incentivizing community engagement through rewards.
Vote Strength and Stake Weight Explained
Vote strength is quantified on a scale from 0 to 1, with 1 indicating full strength. Regular voting is necessary to maintain this strength; failure to vote weekly results in a decrease. Vote strength significantly impacts stake weight, which is the product of the number of staked WAX tokens and the vote strength. To prevent double-spending, WAX employs Byzantine Fault Tolerance (BFT), discouraging block producers from signing multiple blocks simultaneously. Any user attempting to sign two blocks is suspended and penalized by WAX token holders, with BFT ensuring the network’s resilience against component failures.
WAX Services
WAX provides several services, including Creator, a tool for free NFT creation; a wallet that does not store private keys; All Access, a single sign-on service; ExpressTrade, a peer-to-peer trading platform; Explorer, a user-friendly interface for visualizing traded items; a native RNG service to tackle common issues; and a marketplace for buying, selling, and trading NFTs.
WAX Marketplaces Overview
Several marketplaces powered by WAX exist, such as WAX All Access, ExpressTrade, and WAX Seller Central. WAXPeer and dCart are among the most popular, offering decentralized platforms for trading various digital items with numerous payment options.
Conclusion: The Future of WAX
Since its inception in 2017 by leading experts in the virtual goods industry, WAX has established itself as the foremost decentralized blockchain protocol for global gaming and e-commerce. The platform is recognized for its speed, security, and user-friendly experience, making it an ideal environment for creating, buying, and trading unique digital items without transaction fees. With its developer-friendly microservices, WAX fosters an ecosystem that empowers developers and e-sport enthusiasts to build on the blockchain with ease and minimal barriers.
