What is WAX?
WAX is an acronym for Worldwide Asset eXchange, which is an easy-to-use decentralized platform that allows anybody to partake in a fully-functioning virtual marketplace. WAX was principally designed to serve the 400+ million online video game players who want to trade in-game items that can be collected through different games. Its token, named WAXP, is not only the primary unit of currency for its exchange but can also be used to purchase digital collectibles (NFTS) and in-game items in a number of participating games. Its requirements to join are minimal and users do not need a set minimum amount of capital to safely trade using its platform.
History of WAX
WAX was originally developed by the founders of OPSkins, which is one of the world’s leading online marketplaces for video game assets. OPSkins already had a lot of experience in building the open-sourced components that compose the WAX platform, as their software was the basis for several small exchanges that specialized in the sale of goods from individual games. WAX saw the potential benefits in combining all such services into one, fairly-run, decentralized exchange, where overhead for exchange management was minimalized and it could be easily accessed by any participant. WAX concluded its token sale in December 2017, and less than a month later it briefly surpassed a market capitalization of $1.2 billion, making it one of the fastest, greatest rising Ethereum tokens to ever be traded.
How WAX Works
WAX is not just another online exchange for digital collectibles and in-game items but features a large array of trading options, such as bidding, reserve bidding and price naming. Users can not only trade items on its exchange using the WAX token, but also build their own custom exchanges which operate on its platform. For transaction processing within its own network, WAX uses a Delegated Proof of Stake (DPOS) consensus algorithm that organizes nodes into “Guilds” which focus on a single game. WAX tokens are used not only as the primary means of exchange on its trading platform but also to pay for system resources that enable transactions, in a manner similar to that of EOS.
As a decentralized, blockchain-based exchange for the sale of NFTs and online gaming goods, WAX has a lot to offer which most other cryptocurrencies platforms do not. A few of WAX’s many advantages include:
- Highly integrated. Not only is WAX easy to use, traders can create their own virtual store which services thousands of items in the virtual goods ecosystem, currently being sold across thousands of digital marketplaces.
- Wide audience. With more than 400 million active gamers around the globe, contributing to a virtual economy totaling in the billions for online-based digital goods, the potential audience for WAX’s services is huge and growing at a fast pace.
- NFT-ready. The simplicity of the WAX interface makes it easy to onboard new crypto users who are perhaps more interested in collecting and trading NFTs than learning the dynamics of cryptocurrency and the blockchain.
- Extensive partnerships. In addition to servicing most businesses created using software developed by OPSkins, WAX has existing partnerships with Topps, Capcom, the Kyber Network, Robot Cache, Bancor and Jaxx, among others.