Ravencoin, a Proof-of Work blockchain that was launched in 2018, is designed to facilitate token issuance and act as an alternative to Ethereum and Bitcoin. Ravencoin tokens can be used to represent real-world assets or NFTs.
Ravencoin is a blockchain which allows anyone to issue tokens to its network for any reason, as long as that token's main purpose is to transfer assets between entities. The coding infrastructure of Ravencoin is based on a fork of Bitcoin, and the project offers token issuers an alternative to smart-contract-centric blockchains like Ethereum. Although the project is similar to Bitcoin in design, its total supply and block rewards and Ravencoin's proprietary mining algorithm are optimized for efficient token transfer and decentralization. Ravencoin highlights its decentralization-friendly consensus mechanism and security model as its main advantage over other platforms.
Ravencoin, a subsidiary overstock.com of Medici Ventures and its RVN token were launched in 2018. They sought to offer more equitable and democratic access than other structures. Ravencoin didn't conduct a premine or presale of its coins. No RVN was reserved for developers, advisors or Medici Ventures personnel or other early participants. The Ravencoin Foundation was established in 2020 by the project with the goal of being independent from Medici Ventures. Ravencoin's crypto protocol can be modified and adapted by anyone.
X16R: The Unique Ravencoin Mining Algorithm
Ravencoin's design is similar to Bitcoin's but its developers made key modifications to the protocol to allow the creation and transaction of tokens on the network. Ravencoin uses a Proof of Work (PoW), consensus mechanism to protect the network. It uses X16R as its hashing algorithm, which allows for decentralized mining that is more efficient than Bitcoin's SHA256 algorithm. Specifically, X16R is resistant to mining via application-specific integrated circuit chips (ASICs), which are expensive and specialized computers that many believe makes mining more profitable for large-scale operations than it is for hobbyists. Similar ASIC-resistant algorithms have been used by other cryptocurrencies, such as Litecoin. This is because ASICs can cause a greater degree of centralization among miners and a weaker network.
Ravencoin is an "Asset Aware” Bitcoin Fork
Tokens can be issued on Bitcoin's original blockchain, as shown by projects like Counterparty, Mastercoin and the Colored Coins Protocol. However, Bitcoin nodes have been designed to recognize that tokens exist. Every transaction that aims to transfer a token to the Bitcoin blockchain must send enough bitcoin to the protocol in order for it to be recognized as valid. This is despite the fact that the transaction's purpose is to send the token. The token can also be destroyed if the user accidentally spends bitcoin in the transaction mentioned above. Ravencoin aims to resolve these issues without the need to introduce smart contracts or change to a non-PoW consensus system.
There are many other distinguishing factors that separate the Ravencoin consensus mechanism from Bitcoin. The Ravencoin block reward, at 5,000 RVN (as of 2021), is higher than Bitcoin's 6.25 BTC (as per 2021); it takes 1 minute to block, while Bitcoin takes 10 minutes. Additionally, its total RVN supply is 21 billion, as opposed to Bitcoin's 21,000,000. Ravencoin developers modified the code to make it easier to issue and transfer tokens and assets on Ravencoin's blockchain. Ravencoin's basic structure is a peer to peer asset transfer blockchain. However, the consensus mechanism has been optimized for efficiency and allows users to mint and trade digital assets.
Ravencoin use cases
Ravencoin tokens can be used to represent real assets like gold, stock shares, virtual goods, rewards and many other asset types. Chainstone Labs, a digital securities firm, issued 12.4 millions digital shares on Ravencoin's blockchain in 2018. An RVN wallet platform called MangoFarmAssets allows users to create non-fungible tokens on Ravencoin. A tokenized version RVN can also be created on Binance Smart Chain, (BSC). It can be used to borrow, lend, and trade in Decentralized Finance (DeFi) applications.
Ravencoin's unique infrastructure, a Bitcoin-based network, that allows the launch and trading of tokens is attractive to enterprises and industries who need it.
Comments