The protocol that determines which node gets the right to produce the next block is called Waves-NG, and it is a modification of an idea first proposed (but rejected) for Bitcoin (BTC).

Waves-NG breaks up the Waves blockchain into two kinds of blocks – ”key blocks” and “micro blocks.” Key blocks are created by a randomly chosen proof-of-stake miner. A public key in this block is then used by other nodes to create many microblocks which include transactions.