This is my first Steemit post, but certainly won't be the last. Please enjoy installment #1 of my "Layman's Pros & Cons" series.

The purpose of this series isn't to be too specific about the technical details behind any coins or tokens, but rather to offer a brief description of some key points in a simplified manner for the casual investor. We will be focusing on WAVES for this edition.

What is WAVES?

WAVES is a platform that focuses on token creation and asset transfer through a decentralized exchange. They raised ~$16,000,000 during a June 2016 ICO. Since that time, the value of the platform has grown substantially and currently sits at a market cap of approximately $550,000,000. Anyone can create their own token using WAVES and it has featured numerous successful ICOs. The team is predominantly based out of Russia and led by CEO/Founder Sasha Ivanov, who was previously involved with NXT.

Pros

1. WAVES has crowdfunding capabilities

WAVES has successfully launched numerous ICOs on their platform and more are scheduled for the near future. We've seen the rise of Ethereum and the value of investing in platforms that can successfully launch and support other coins/tokens is clearly significant. While Ethereum undeniably has a global reach, WAVES is uniquely positioned in the Russian market where there is a ton of untapped opportunity. Much like NEO is referred to as the "Chinese Ethereum," I'd argue WAVES can be considered the Russian equivalent. Additionally, WAVES focuses on the simplicity of token creation and is uniquely positioned to help existing businesses access the cryptocurrency marketplace in this regard. Though crowdfunding is a prominent feature of WAVES at present, it is important to note that this is not the sole purpose of the platform. Unique implementations of smart contracts are in the works and a decentralized exchange is a prominent feature.

2. WAVES has a functioning decentralized exchange

Decentralized exchanges are going to play a prominent role as cryptocurrency moves forward. Given the general distaste for "trusted third parties" by those in the space, it doesn't make much sense that everyone consistently puts their faith in centralized exchanges like Coinbase, Bittrex, Poloniex, and so on. Decentralized exchanges are cheaper, more private, and more secure. A push from state actors to further regulate the space (read: the USA's SEC) is coming and with it should come a movement to decentralized exchanges. WAVES is ahead of the game here.

3. WAVES has strong strategic partnerships

I honestly first invested in WAVES because I read an article about the platform partnering with a prominent Russian bank. Since that point in time I've seen news about them partnering with international consulting firm Deloitte (for ICO advisory services), Russia's Central Securities Depository (they manage nearly as much money than Goldman Sachs), Russian Burger King (they created a token called the Whoppercoin), and a partnership with a prominent billionaire politician to create an ICO incubator to encourage Russian blockchain innovations. These were honestly just the first few pieces of news that came to mind---there's much more out there (particularly if you can read Russian).

4. You can lease your WAVES and get returns

Through the WAVES platform, you have the ability to lease your WAVES and get a regular return on your investment. This is a bit hard to explain without getting too technical, but you essentially lend your waves to a node to help secure the network. This is called Leased Point of Stake (LPoS). In return, you get paid out (typically weekly) in WAVES and other platform-based tokens (which you can trade for WAVES or other currencies/coins on the decentralized exchange). One great feature of the WAVES LPoS system is that you can cancel your leasing contract at any time---a certain time frame isn't required. The returns here won't be incredibly significant unless you own a shitload of WAVES, but It's always nice to make a little extra off of your initial investment.

5. The WAVES token has a finite supply

Only 100,000,000 WAVES tokens will be issued and they are all already in circulation. If you're in the crypto game for the long haul, surely you understand the basic tenets of supply and demand. Given that the WAVES token is necessary to accomplish basically any task on the platform (ex: token creation, LPoS, or use of the decentralized exchange), such a finite supply of WAVES is going to lead to a substantial rise in the value of each token as adoption increases.

Cons

1. The WAVES clients aren't intuitive or visually appealing

The user interfaces for WAVES are a bit difficult to navigate and they aren't particularly sexy. I've predominantly utilized the Lite Client and it definitely took me some time to get used to (and I had to ask my fair share of questions in Slack when first exploring some of the features). I do think this negative aspect will improve over time as the platform matures. Given the complexity and detail of the underlying tech, my assumption is that aesthetics and ease of use have simply not been made priorities at this point in time. Word is that an updated UI will be released shortly. Currently, this is definitely a barrier to entry for the average individual trying to get into cryptocurrency and utilize the WAVES platform, but a barrier that will most likely be progressively eliminated over time.

2. The crowdfunding space is crowded

One prominent function of WAVES is as a crowdfunding platform and one can argue it has numerous prominent competitors in that arena. Ethereum is the largest one, but NEO and several other nascent platforms (Qtum, Ubiq among others) also crowd the space. Obviously ICOs are extremely popular right now and the pie is currently big enough for everyone to enjoy a slice. It is important to note, however, that WAVES focuses less on crowdfunding of tech-based ventures, but more so emphasizes the ease of creating crypto tokens through its platform for everyday (small and large scale) businesses. Furthermore, WAVES is not totally dependent on its ability to crowdfund. The presence of a working decentralized exchange and a focus on the emerging Russian marketplace is comforting in this regard, as none of the other aforementioned platforms present those benefits.

3. There are some security concerns

Presently you cannot store your waves on the most prominent hardware wallets (Trezor, Ledger Nano S). Additionally, and certainly more concerning to me, the WAVES clients don't currently implement Two Factor Authentication. These are major concerns and they have been expressed repeatedly in the WAVES Slack channel to the platform developers. The WAVES team is fully aware of the security issues and are probably working on implementation of 2FA as we speak.

4. WAVES is not on many exchanges

WAVES is only traded in significant volume on YoBit and Bittrex. It is not currently available to trade on major exchanges like Poloniex and Kraken. Additionally, of course, you can trade WAVES on the platform's own decentralized exchange. This makes WAVES somewhat inaccessible. It is worth noting, however, that I almost put this heading in the Pros section because there are rumors that WAVES will soon be listed on the up-and-coming cryptocurrency exchange Binance. Presumably other exchanges will trade in WAVES in due time as well. One could make the argument that the lack of available markets is currently keeping the price of WAVES down and that it will rise with increased exposure and trading volume.

Conclusion

The pluses and minuses noted above paint a fairly clear picture of how I view WAVES presently. The platform is currently operational and has numerous unique characteristics that make it a strong player in the cryptocurrency space. It is truly one of the few platforms that offers token creation geared toward bridging the gap between existing (often institutional) businesses and the cryptocurrency space. WAVES has a ton of opportunity to grow and I believe that many of the current negative points will be resolved and transition to positives over time.

If you made it this far, thank you for reading my first Steemit post! I'd appreciate any and all comments and criticism, as I plan on making these posts regularly. This was the first edition of many for "A Layman's Pros & Cons."