A blockchain for launching tokens
Ravencoin is a peer-to-peer network and cryptocurrency designed to facilitate asset transfers between parties using an application-specific blockchain. The project intentionally limits itself to a very specific use case and tries to differentiate itself from other blockchains. Unlike Ethereum’s goal as a “global computer”, Ravencoin’s goal is to focus on narrowing down to one use and developing it.
Ravencoin is not reinventing the wheel, as there are already multiple token specifications on the Ethereum blockchain (such as ERC20, ERC721, and ERC223, to name a few). However, the Ravencoin team argues that the absence of specialization leads to challenges critical to the transfer of assets.
Ravencoin’s development team has figured out the need to use the base currency (eg Ether) to complete an asset trade. The cost of replacing the asset will increase if the network costs are too high. Therefore, Ravencoin seeks to build a network that can transfer all real and digital assets and is designed specifically for this purpose.
Examples of Ravencoin’s use
Similar to Ethereum, Ravencoin is intended to allow the production of tokens on the Ravencoin blockchain and the development of unique tokens “within minutes.” These tokens can have any imaginable properties. They may be issued in small numbers, bear a special name, or serve as a kind of security or collectible. In fact, Ravencoin announced through Twitter that everything can be built in terms of Ravencoin tokens.
Blockchain technology ensures that tokens cannot be counterfeited and are comparable to legal papers in terms of their ability to verify the legitimacy of assets. A predetermined amount of RVN serves as collateral for the assets. It costs RVN to make a transfer. The transfer of ownership is recorded in an updated ledger.
Ravecoin Mining
The most important modification is the inclusion of X16R mining algorithm, which dynamically switches between 16 distinct algorithms. Keeping the network decentralized is the fundamental goal. By incorporating ASICs into the mining algorithm, we can ensure that the network does not become centralized (as it has done with Bitcoin). This is something that the Ravencoin team has decided to prioritize.
After a single ASIC miner amassed around 50% network control by October 1, 2019, Ravencoin developers were forced to intervene and adjust the mining algorithm to avoid centralization of mining operations. One person mined up to 45 percent of the Ravencoin blocks in July 2019, as shown by a Medium post.
On October 1, 2019, Ravencoin Software 2.5.1 was released, restoring support for GPU-based block mining and network functionality, while restoring the cryptocurrency’s resilience against ASIC mining hardware. This new version of the algorithm is called X16Rv2.
Investment Overstock in RavenCoin
CEO of Overstock, Patrick Byrne, revealed in an interview with Business Insider in February 2018 that his business has invested several million dollars in the obscure cryptocurrency startup, Ravencoin. Widely recognized as Ravencoin’s most vocal advocate, Byrne has been a strong advocate of the cryptocurrency’s potential since its inception.
Medici Ventures, an Overstock affiliate, facilitated Ravencoin’s first major token transfer. Transferring digital tokens through the Ravencoin blockchain, the company paid $3.6 million to acquire a 29% stake in Chainstone Labs. Although the token was not sold to the general public, this deal demonstrates the power of the Ravencoin blockchain.
Ravencoin’s roadmap
As of December 2022, seven of Ravencoin’s nine development stages has been completed. In short, the following improvements will be implemented in the stages that are not yet completed:
- Phase 6: Reconciliation. For the voting process, new tokens will be generated and issued to token holders. Votes cast with these tokens can be registered at RVN addresses. UTXO-based tokens that do not expire can now be used in elections.
- Phase 7: Compatibility Mode. To facilitate incorporation into existing infrastructure (exchanges, wallets, explorers, etc.), newly produced assets may appear identical to RVN, LTC or Bitcoin. This will facilitate rapid integration into the wider crypto community.
Final thoughts
The Ravencoin project has a lot of untapped potential. It is a cryptocurrency that specializes in tokenization and asset transfer, while many others aim to compete with Ethereum as the “largest smart contract platform.”
Due to its relative infancy, Ravencoin faces stiff competition from established projects such as Ethereum, Cardano, EOS, Waves and Bytom. On the other hand, the Ravencoin project has the support of an engaged community as well as Patrick Byrne, CEO of Overstock.
Ravencoin (RVN) and Ethereum are both competing for a piece of the growing asset tokenization market, but it’s still too early to say which one will come out on top.
