Waves-NG Algorithm | cryptocurrencies, blockchains & live prices

Waves-NG is the consensus protocol used by the Waves blockchain, based on Bitcoin-NG (Next Generation), a protocol originally proposed by Emin Gun Sirer and Ittay Eyal. Waves-NG separates block production into two types: key blocks and micro blocks. A miner who is elected as the leader for a round produces a key block (which is empty of transactions but establishes the miner's authority) followed by a continuous stream of micro blocks containing actual transactions. This leader continues producing micro blocks until the next key block is mined by the next elected leader. The leader election uses a Leased Proof of Stake (LPoS) mechanism where WAVES token holders can lease their tokens to full nodes to increase their block generation probability.

Waves-NG achieves significantly higher throughput than traditional one-block-at-a-time protocols because the elected leader can continuously produce micro blocks between key blocks, utilizing the full network bandwidth for transaction processing. Block generation happens approximately every 60 seconds for key blocks, but micro blocks are produced every few seconds, providing fast initial confirmation. The Leased Proof of Stake mechanism allows token holders to participate in consensus without running full nodes — they lease their balance to a node operator who generates blocks and shares rewards. The protocol provides probabilistic finality, with transaction certainty increasing as more key blocks are produced after the transaction's inclusion.

Waves-NG has been running on the Waves blockchain since its implementation, evolving the original Bitcoin-NG concept with proof-of-stake economics. Waves was founded by Alexander Ivanov (Sasha Ivanov) in 2016 and originally focused on token creation and decentralized exchange functionality. The blockchain supports smart contracts through the Ride programming language and has hosted various DeFi applications. Waves has undergone several protocol upgrades over the years, and the Waves-NG protocol represents its approach to balancing throughput with decentralization. The Leased Proof of Stake model is distinctive in allowing liquid participation in consensus — leased tokens remain in the owner's account and can be un-leased at any time.