{"id":40939,"date":"2018-04-09T09:00:55","date_gmt":"2018-04-09T16:00:55","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=40939"},"modified":"2020-04-01T15:09:09","modified_gmt":"2020-04-01T14:09:09","slug":"wax","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/wax\/","title":{"rendered":"Introduction to WAX – A Decentralized Exchange Platform for Digital Assets"},"content":{"rendered":"

Hundreds of millions of gamers trade weapon skins (camouflages) for real currency. In fact, the gaming skin trading industry is worth approximately 50 billion dollars. Dozens of sites have popped up in recent years, specializing in the exchange of digital assets \u2013 more specifically, weapon skins. However, these centralized online exchanges charge high fees, not to mention their vulnerability to cyber attack.<\/p>\n

\"WAX\"
Worldwide Asset eXchange (WAX) is a decentralized exchange platform designed to facilitate the trustless exchange of digital assets in video\u00a0games.<\/figcaption><\/figure>\n

Designed to aid both marketplaces and customers in the realm of in-game digital asset exchange, WAX<\/a> is taking on a huge industry \u2013 however, the token has a head start. The development team working on the exchange platform is the same development team behind OPSkins, the largest digital exchange platform in the world.<\/p>\n

OPSkins sells more than 2 million items on a weekly basis, and they are incentivizing their users to adopt the platform. WAX is taking on a multi-billion dollar industry with a potential user base of over 400 million.<\/p>\n

The Significance of Weapon Skins<\/h2>\n

In short, weapon skins are good looking designs or images that can be applied to guns in-game. Ranging in value from a mere five cents to thousands of dollars, they do not affect in-game performance \u2013 no special abilities, powerups, or advantages are given to any player with a skin.<\/p>\n

Since they are entirely cosmetic, holding no gameplay function whatsoever, what makes them so valuable?<\/h3>\n

Before you try to figure out why someone would spend $500 on something with no real functionality, it is important to understand the games in which these skins are traded. Counter-Strike: Global Offensive (CS:GO) is a prime example.<\/p>\n

CS:GO\u00a0is a competitive E-Sports shooter. Traditionally, two teams composed of five players fight head-to-head, either attacking or defending an objective. The first team to win 16 out of 30 rounds wins the match.<\/p>\n

\"\"
The gun on top is called the AWP. The bottom version is the exact same gun, with the Dragon Lore skin equipped \u2013 it is worth over $2,000.<\/figcaption><\/figure>\n

In a competitive title such as CS:GO, it would be unfair to implement powerups and abilities, especially if they are paid for. Many gamers detest pay-to-win games that give an unfair advantage to those with the deepest pockets.<\/p>\n

The developers of CS:GO\u00a0designed the game (and weapons) to be balanced. The team with the most skill and the best coordination will win. Additionally, there is no form of progression in the game. You cannot level up your character or unlock new weapons as you can in Call of Duty \u2013 owning\u00a0good looking skins is the only way to distinguish yourself from other players in-game.<\/p>\n

When you pull out a gun like the AWP Dragon Lore, worth more than $2,000, everybody notices. Players love showing off their cool and expensive skins. It's a way for gamers to demonstrate their personality.<\/h3>\n

A Honda Civic and a Lamborghini both go from point A to point B, but they are far from the same car. Heads turn when a Lamborghini goes by. The same could be said about weapon skins \u2013 a default skin and a Dragon Lore both do the same thing, but one does it in style.<\/p>\n

A Global Market for Digital Assets<\/h2>\n

Virtual asset trading is splintered across dozens of marketplaces, each with different business models tailored to their region of the world.<\/p>\n

OPSkins is using blockchain technology to create a global digital asset exchange, accessible to anyone in the world, that provides an inventory of everything for sale in real time. Instead of fragmented marketplaces across the globe, WAX is uniting the economy by creating a single market designed specifically for the exchange of digital assets.<\/p>\n

As stated in the token's\u00a0whitepaper<\/a>:<\/p>\n

The vast majority of gamers who buy and sell
\nvirtual assets today are likely to have their items stolen or pay exorbitant fees through cross-border transactions unless they go to a centralized trading platform. This market friction is the key factor limiting the growth of this $50+ billion market.<\/p><\/blockquote>\n

WAX has its own token used for payment on the network, allowing for seamless exchanges amongst international parties. Before the creation of WAX, this was a huge problem. Now, buyers and sellers don't have to worry about paying\u00a0high currency conversion and cross-border payment processing fees.<\/p>\n

Furthermore, blockchain technology renders the WAX exchange completely immutable \u2013 your transactions are 100% safe from cyber thieves.<\/p>\n

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WAX uses the blockchain to keep your digital assets safe from theft \u2013 unlike centralized exchanges, WAX is completely immutable<\/figcaption><\/figure>\n

The OPSkins team is well equipped to launch this new cryptocurrency. OPSkins will fully support WAX, integrating it into their existing platform. In addition, OPSkins is not new to the crypto space \u2013 they've been accepting Bitcoin payments for over two years, and they developed their own Bitcoin payment processing platform.<\/p>\n

Unique Digital Marketplaces<\/h2>\n

Skin trading is a 50 billion dollar industry, and OPSkins is opening up the market to anyone and everyone. Through the power of the blockchain, anybody can start their own OPSkins-like digital store. The API is simple \u2013 with just a few clicks, you can open a marketplace.<\/p>\n

After each transaction, WAX autonomously completes the settlement process. Comparatively to other platforms such as Amazon and eBay, WAX is paving the way for a new breed of digital power sellers.<\/p>\n

If a potential buyer visits a digital marketplace and ultimately makes a purchase, the marketplace owner will receive a portion of the transaction fees.<\/p>\n

Delegated Proof-of-Stake<\/h2>\n

The WAX platform runs on a Delegated Proof-of-Stake algorithm, originally created by BitShares<\/a>. Representatives are selected by users to secure the network. After users pledge (stake) their WAX tokens, they are granted a vote. Votes are weighted based on the amount of WAX tokens the voter owns.<\/p>\n

Guilds<\/h3>\n

Once elected, representatives are known as Guilds. They become the confirming nodes on the network. Each Guild is elected to represent a different game or server \u2013 WAX is starting with 64 Guild members, but more will be created per request of the community.<\/p>\n

When a proposal for a new Guild\u00a0receives enough votes, eight more Guild positions will open up. The system prioritizes demand for new games and servers without growing too quickly.\u00a0\u00a0If users begin to lose faith in a Guild, they can retract their vote and opt for another Guild or proposal.<\/p>\n

Guilds have additional responsibilities aside from confirming the network. They must submit a proposal that states the game they will represent, the percentage of fees they will share to pledged users and how they plan on monitoring Transfer Agents.<\/p>\n

Transfer Agents<\/h3>\n

Transfer Agents collect digital assets from sellers and deliver them to buyers. Guilds are responsible for assigning Transfer Agents who facilitate exchanges. In exchange for their services, they earn a portion of transaction fees. Anyone can become a Transfer Agent, as long as they stake WAX tokens first as collateral.<\/p>\n

They are expected to:<\/p>\n