Today, there are thousands of cryptocurrencies available in the market, although most have little to no value. In this article, however, we will be talking about one of the crypto coins that presents itself as the next best thing to bitcoin, and that is a cryptocurrency project called Ravencoin.
What is Ravencoin? How does it work? What are its use cases? All these questions and many more will be answered in this article.
What is Ravencoin?
Ravencoin is an open-source, peer-to-peer network created as a fork of Bitcoin. It was launched on January 3, 2018, to efficiently handle the transfer of assets from one party to another. Since Ravencoin was forked from bitcoin, it shares certain similarities with bitcoin, although there are some key differences in both coins.
Ravencoin is backed by Medici Ventures, a subsidiary of Overstock.com, and it seeks to provide fairer and more decentralized access than some other projects have to offer. The Ravencoin whitepaper was published by three seasoned businessmen and developers, Bruce Fenton, Tron Black, and Joel Weight.
How Does It Work?
Ravencoin was first introduced in November 2017 as an experimental currency. In a blog post by Ravencoin’s founders on Medium, they made references to the popular TV drama series, Game of Thrones, saying:
“In the fictional world of Westeros, ravens are used as messengers who carry statements of truth. Ravencoin is a use case specific blockchain designed to carry statements of truth about who owns what assets.”
Ravencoin’s main objective is to allow users to process near-instant transactions seamlessly. Its main feature is its ability to be mined by a regular computer. Like Bitcoin, Ravencoin uses the Proof-of-Work (PoW) consensus mechanism to secure its network. However, its hashing algorithm is different from Bitcoin’s SHA-256 algorithm.
The project was designed to create a mining ecosystem that did not allow specialized crypto-mining hardware, including application-specific integrated circuit (ASIC) and field-programmable gate array (FPGA), to have the edge over average computers.
Ravencoin’s objective is to use an ASIC-resistant algorithm to help it stay more decentralized. It has undergone two mining algorithm changes since its creation. When the project was first launched, it utilized the X16R algorithm. However, ASIC miners found a way around that algorithm, leading Ravencoin’s developers to fork from the X16R algorithm to X16Rv2 on October 1st, 2019.
Ravencoin’s second algorithm change was in January 2020, from X16Rv2 to the current KAWPOW algorithm to prevent ASIC and FPGA miners from mining Ravencoin. The KAWPOW algorithm is geared toward overcoming the problem of centralization of mining by utilizing over-the-counter graphic processing unit (GPU) memory and compute capabilities to allow most consumer-grade GPU hardware to mine Ravencoin.
Ravencoin allows anyone to issue tokens on its network for various reasons as long as the main purpose of that token is to be used as a means of transfer.
The RVN Coin
Ravencoin (RVN) is the project’s native cryptocurrency. It has a maximum supply cap of 21 billion coins, as opposed to bitcoin’s 21 million supply. Unlike bitcoin, Ravencoin has a block reward of 5,000 RVN, and currently, over 9.6 billion RVN has been mined. Its block time is also reduced to one minute.
One other similarity Ravencoin shares with Bitcoin is halving. Its first halving is set to occur in January 2022, at block 2,100,000. Subsequently, the reward per block will drop from 5,000 to 2,500 RVN.
To ensure fairness, Ravencoin was launched without an initial coin offering (ICO), pre-mine, or master node, that will provide any form of incentives to the project developers and funders. By employing this method, everyone on the network, both project founders, developers, and investors, was able to start mining at the same time, and they all had an equal opportunity to earn RVN when it was launched.
RVN is supported by its wallet and can be traded on several other third-party wallets like Trust Wallet, Atomic Wallet, and top crypto exchanges, including Crypto.com, Binance, OKEx, and many more. RVN is currently trading at $0.12
RVN Use Cases
Ravencoin has a couple of notable use cases.
Ravencoin can be used to issue tokens that represent real-world assets such as gold, shares of stock, virtual goods, and many other assets.
To create a new crypto asset, users must burn a certain amount of RVN coins and provide a unique name for their token. Subsequently, they can define the special characteristics their token has, such as the number of tokens issued, its fungibility, and more.
Ravencoin grants token creators on its network the ability to message anyone who holds their tokens, and this allows specific holders to be notified when they might need to vote on new proposals.
Ravencoin may not be the most innovative cryptocurrency, but it is certainly one that many investors will be interested in researching further and using to diversify their portfolio. What are your thoughts on Ravencoin?