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What is Ravencoin (RVN)? Our Ultimate Guide
If you’ve been in the crypto space for very long, then you know that there are new tokens, coins, and opportunities for investment each and every day. This is a space in which developers can create something they’ve only dreamed about while gaining the support of the crypto community.
There is no shortage of investment options in the cryptocurrency market, however, only a handful will turn into worthwhile opportunities over the long haul.
One of the newer coins to take up residence in the crypto market is Ravencoin. In a little over a year, this coin has gathered a significant support system and following with others in the community. In roughly 14 months, Ravencoin has exceeded all expectations set in front of it, making it one of the more exciting coins out there.
But you don’t have to take our word for it. Our review will tell you all about Ravencoin. Who it is, what it does, and more.
What is Ravencoin?
Ravencoin is an open-source platform that launched on January 3rd or 2018. The platform enables the tokenization of assets which then allows them to be transferred on the blockchain. Other blockchains like Ethereum and Bitcoin do possess the ability to perform asset transfer capabilities, however, that is not their primary purpose.
Raven’s tokens – RVN – help create nonfungible and fungible digital assets. They can also be used for non-asset based tokens like the VOTE token. This token powers the consensus method behind Ravencoin. In this manner, Ravencoin behaves like Ethereum as it focuses on performing one task very well.
What’s in a Name?
Using message carriers and homing pigeons ranges all the way back to well-known civilizations like the Romans and the Persians. However, what many people don’t know is that these types of messaging methods were used all the way up to the first World War. This type of bird was used due to its instinctual behavior to return to its nest.
The problem is that pigeons don’t exactly call to mind a picture of excitement or appeal – they’re the rats of the bird world. As a result, the Ravencoin team sought a more exciting option and found the carrier ravens used in George R.R. Martin’s Game of Thrones series. With these ravens, a secure and fast messaging system was developed. This is what Ravencoin is based on.
Ravencoin is a fork of Bitcoin, which means that it has an architecture that is similar to the original cryptocurrency. However, Ravencoin has updated the network to handle Bitcoin’s problems with scalability. As a result, users see quicker block times, a bigger supply of coins, and higher rewards for mining Ravencoin. In 2013, Block established CoinCPA, which provides cryptocurrencies with an accounting system.
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Who is Ravencoin?
Led by Tron Black and Bruce Fenton, Ravencoin is an open-sourced fork of Bitcoin. Black is both a programmer and businessman who focuses on technologies driven by blockchain. He has also founded several other successful crypto businesses.
Fenton, on the other hand, began his journey with Morgan Stanley Dean Witter. As a stockbroker, he started Atlantic Financial Inc., which is a company of which he is not Managing Director. He also founded Chainstone Labs, a company that focuses on tokenization of security, decentralized asset management, and blockchain technologies. Fenton also served on the Bitcoin Foundation as an executive director.
What Problem Does Ravencoin Solve?
Ravencoin aims to solve the problem of a lack of open-sourced blockchain which specifically targets the transfer of assets. Even though popular cryptocurrencies like Ethereum and Bitcoin have the ability to transfer assets, they aren’t designed specifically for that purpose. As a result, they have some significant drawbacks.
One of the problems inherent to the Bitcoin blockchain is that it doesn’t automatically determine if an asset is embedded. This means that it can inadvertently destroy a user’s asset. For instance, if you decide to send Bitcoin to an exchange with the asset embedded, the asset would then be destroyed.
In addition, the assets must be embedded into Bitcoin as opposed to their native token. As a result, you’ll have to use small bits of bitcoin, which could turn out to be a very expensive venture depending on the cost of Bitcoin at the time.
On the other hand, ERC721, ERC223, and ERC20 Ethereum tokens all support asset transfers and smart contracts. The problem with using Ethereum for asset transfers is that you may encounter confusion as there could potentially be multiple tokens at the same time with the same name.
As a result, you might encounter some potential mistakes when attempting to uniquely identify the asset to ensure that each party received the right asset. Additionally, neither Bitcoin nor Ethereum provides a way for the issuer of the token to communicate easily with those holding their tokens.
Based on Ravencoin’s whitepaper, the coin aims to provide a solution through a bitcoin-like platform that is completely asset compatible. This helps to keep someone from mistakenly destroying an asset when sending it while also removing the need to include Bitcoin with each transaction.
With Ravecoin’s protocol, users can uniquely name their assets and tokens without having to worry about mining. These types of tokens can easily be transferred and can serve any purpose the user or the token creator needs them to serve. Essentially, these are tokens with a set supply that represent a specific asset. Using a Ravencoin address, these assets can then be easily transferred from one user to another.
Users can have these tokens represent anything they want. This could include books, artwork, securities and stocks, land titles, and much, much more. Additionally, voting and messaging features are part of the Ravencoin platform. This gives the token issuers a way to send messages to those holding their tokens.
With Ravencoin’s messenger system, holders can also receive alerts that they need to vote. Issuers can then create vote tokens and distribute them to everyone who is holding a token. Then holders can vote by moving their tokens to a given protocol address.
Ravencoin did not have an ICO and no founders hold the majority of RVN coins. This is a Proof-of-Work project, which means anyone can mine Ravencoin with their CPU. It has the backing of two reputable persons in the crypto community and gives credit to Bitcoin. The RVN community is respectful of the work that Bitcoin developers have done and as a result has earned them the help of a few Bitcoin developers.
In addition to some of the unique aspects we’ve talked about already, Ravencoin offers several features that come in handy for certain token platform use cases. Here’s a look at what you can expect when using Ravencoin’s platform:
- Native Wallet and Client: The wallet that is native to Ravencoin has the ability to manage, create, and transfer assets. Also, the Ravencoin client is asset-aware, which means its assets have uniquely defined names instead of only a contract address. You don’t have to worry about downloading a specific wallet for your RVN tokens. You also don’t need a specific browser for developers to execute or upload any smart contracts. It’s quite simply a core feature of the Ravencoin blockchain. As a matter of fact, smart contracts are not performed on Ravencoin’s network at all. This is different than how Ethereum handles things, which means there’s no need to impose fees for gas.
- Messaging: Those holding RVN can receive messages from the coin issuer, which gives them the ability to communicate with holders. Issuers can also initiate elections and interact with investors. The messaging system does have an opt-out option and can be used to create specific assets which open communications channels within the platform.
- Dividends: Those who issue Ravencoin can also send dividends of RVN directly to token holders. This ability is a critical function which provides additional security to the platform. It also gives token issuers an easier method to reward investors.
- Voting: With the messaging system, token issuers can notify stakeholders of a vote and let them know when it’s time to vote. Token holders are then issued Vote tokens which are used to represent how they want to vote.
- Smart Contracts: Ravencoin differentiates itself from Ethereum by not including the ability to perform smart contracts directly on its blockchain. This is a huge difference which directly impacts the potential to scale. Instead, Ravencoin includes a second layer option, which supports smart contracts via RSK. This allows the platform to focus on transaction completing instead of compiling and executing code.
- Multiple Asset Types: Ravencoin supports two distinct asset types. A quick description of each is listed here:
- Unique Assets: Token issuers can create a single unique token. This means only one of them will ever exist. A unique asset token comes in handy if you want to show ownership of only one unique asset.
- Sub-Assets: Token issuers can also release sub-assets after they release an asset. These sub-assets exist beneath a sub-category. However, there is an additional fee associated with a sub-asset.
- Burn Mechanism: Ravencoin tokens are issued by using a burn mechanism which receives payment only with RVN. As a result, you cannot create an asset without using RVN. If you want to create an asset, it will run you 500 RVN, while creating sub-assets typically cost another 100 Ravencoin. These are then sent to a burner address which is then removed from circulation forever.
- External Metadata References: This isn’t a huge deal from a technical perspective, however, the RVN protocol allows you to reference documents outside of the network. This is ideal for those working on agreements between people that point to things like securities which reside outside the platform. As security tokens begin to take hold in the crypto community (which we’ll talk about soon), it makes sense to have a way for investors to ask for and receive contracts or other assets that exist in the real world.
- Lightning Network: The Lightning Network is all the rage nowadays and will support Ravencoin. This means you’ll be able to perform very fast transactions and transfers using the Lightning Network solution.
Ravencoin and STOs
As we mentioned, security tokens are making a big impact in the world of cryptocurrency. As a result, many coins and platforms are turning their focus to supporting and managing Security Token Offerings.
Recently, TokenizeEU chose Ravencoin over Ethereum for its security token offerings. It pointed to many of the features inherent to the Ravecoin platform that make it a great option for their services. Based in Europe, Tokenize EU is a company that helps companies structure their STOs so that they comply with European Union regulations and requirements.
The fact that TokenizeEU chose Ravencoin may have raised some eyebrows in the crypto community, however, it puts Ravencoin on the map as a platform that can handle issuing security tokens. Features like Ravecoin’s voting and messaging system, dividend sharing, unique naming system, and asset creation all helped the coin earn TokenizeEU’s business.
There are many other projects available in the crypto market that offer similar features and capabilities to Ravencoin. We’ve mentioned Ethereum several times as a platform that gives users the ability to create tokens. However, tokenization isn’t Ethereum’s primary focus.
Other projects like Enjin Coin and WAX do allow for the tokenization of digital assets, however, they tend to focus on those in the gaming industry. Polymath is in a similar boat as it targets securities.
Perhaps the most similar project you’ll find is Bytom. Both Ravencoin and Bytom have platforms and goals that are nearly identical to one another. There are a few differences though. Bytom allows for ASIC mining and held an ICO, two things which Ravencoin from which Ravencoin abstained.
Should You Buy Ravencoin?
- Tokenizing assets is an exciting and quickly growing space in the crypto world. The ability to manage the transfer of real-world assets will give many markets the ability to take advantage of blockchain technology. However, there are competitors that have been in the market longer than Ravencoin, but the project sets itself apart thanks to the many features it provides its users.
- Ravencoin is completely committed to staying away from ASIC mining. Since RVN is very community-centric, ASIC resistance is very important since it allows new miners to jump into the fray and get mining right away. It also gives them a fair shot by allowing them to use consumer grade hardware.
- An interesting space that Ravencoin has the ability to disrupt is the shares and securities industry. By tokenizing assets, creators can reward holders for having their tokens. Securities and Regulations authorities are starting to take cryptocurrencies seriously, which means it’s only a matter of time before we see securities n a blockchain. Ravencoin is in prime position to gain some of that market.
- Ravencoin is designed specifically for assigning a value to unique assets. By tokenizing assets, RVN provides a way to verify ownership of said asset. Tokenizing assets is a unique proposition. Once an asset is registered, it cannot be owned by another individual or project.
- For investors, Ravencoin is a great opportunity to enter a space that will more than likely experience a significant amount of capital in the near-term. Compared with other, smaller projects in the same space, Ravencoin is undervalued and has a lot of growth opportunities. With its fully decentralized model in place, Ravencoin is sure to be a key player in this sector.
- One large area of concern around Ravencoin is the number of RVN available. The more RVN that enters the market, the lower the value of any already existing tokens in circulation. This is really a problem for those who are looking at long-term investments. However, if the project gains traction and adoption, then the number of coins available may not be as important.
- While Ravencoin is doing what it can to set itself apart, it has serious competitors. Polymath, for instance, is competing heavily in the same space and has received significant funding from investors. Typically, those with the most funds can plow through development at a quicker pace simply due to finances. While this isn’t a huge concern for Ravencoin yet, it is something to keep an eye on for community-driven projects like RVN.
- While there might be a few more concerns around not having core developers listed or lacking an official ICO, these are fairly trivial from an overall perspective. Ravencoin has a solid community and strong fundamentals backing it.
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Ravencoin is a blockchain project specifically created to efficiently move assets in an electronic fashion. While this in and of itself may not be groundbreaking, it’s a use-case that could wind up with heavy adoption. By tokenizing assets, RVN has the ability to create and manage traditional assets. This would include things like land deeds, artwork, gold, and any other real-world item with value.
Additionally, Ravencoin can transfer goods like shares of a company, tickets to sporting events, or even rewards points. Ravencoin’s whitepaper says that the project also has the ability to serve as a foundation for those just starting out in the world of cryptocurrency and blockchain. WIth its Bitcoin-based code and specific Ravencoin features, it’s not a bad place to begin.
Overall, Ravencoin is an intriguing project that is still getting its feet set. It’s only been around a little over a year, but has already achieved plenty of success and garnered several key partnerships in the process. RVN has had its share of good press while developing a strong following and community.
The Ravencoin blockchain has grown quickly over the past fifteen months and will continue to do so as its development progresses. Even though this is a small coin and not very well-known project, Ravencoin has a bright future ahead of it. It has its work cut out for it as it moves forward, however, it’s one we’re keeping a close eye on in the future.
Learn more about RVN’s peer to peer system to create and transfer digital assets in their official whitepaper.