What is Ravencoin and how does it work? Explained. : Price Analyses

What is Ravencoin and how does it work? Explained.

Ravencoin
RVN
$ 0.036542
0.00000439 BTC
Marketcap
$ 168,247,540
Volume (24h)
$ 31,926,966
Circulating Supply
4,622,055,000 RVN
Total Supply
21,000,000,000 RVN

Ravencoin’s real-time price is: $ 0.036542

Ravencoin is a cryptocurrency that was built from the backs of over 430 Bitcoin developers who made 14,000 commits to its codebase.

The coin was fist released announced on October 31st, 2017 and was released for mining on Janurary 3, 2018.

Ravencoin was designed and optimized for transferring assets from one entity to another based on the UTXO model of the Bitcoin protocol. As such, Ravencoin is a fork of Bitcoin’s code.

Some key changes include a block reward time of one minute, a change in the number of coins issued, and a weighted distibution schedule. Additional changes include a shift in its asset creation module and the offering of messaging capabilities. All of Ravencoin’s code is open source and is mined publicly using the Proof of Work (PoW) consensus algorithm.

Ravencoin states that it has no “private, public, founder, or key developer” and that it was designed to “prioritize security, user control, privacy and censorship resistance” as its governing ideals.

Ravencoin Full Asset Aware Protocol Ecosystem

Ravencoin intends to resolve the problems present in both the Bitcoin and Etherem ecosystems.

For bitcoin, assets in the blockchain must be followed as they were originally intended, which means that no changes to the network can feasibly be made.

In the case for Ethereum, a different problem exists. As Ethereum does not recognize native smart contract tokens, this can often be confusing in the case of multiple ERC-20 tokens with identical names. The only difference then between the names is the contract hash, which is not practical when dealing with a large number or amount of different tokens of the same name.

The issuer of a token burns RVN and must provide a unique token name. The issuer determines the quantity issued, the number of decimal places, and whether they will be allowed to issue more of the same token in the future.

In Ravencoin’s own words, its objective is to “create a bitcoin-like system that is fully asset aware.”

This kind of system brings with it three apparent advantages: first, client and RPC commands can protect assets from being destroyed by accident, and secondly it allows native clients to “issue, track, and transfer assets.”

The third benefit is that the model allows users to enhance the security of its underlying assets with a “a strong mining community and wide distribution.”

Assets on the Raven Coin Ecosystem

There are some specific changes that differentiates Ravencoin from Bitcoin and Ethereum.

First, assets are available to all users on the Raven protocol without the need to be mined and serve a unique purpose in the Ravencoin ecosystem.

Unlike Bitcoin or Ethereum, users get to decide what their assets are and how they are used.

These assets (or tokens) can be named whatever the asset creator would like, with its purpose also decided within the same subjective framework.

For example, and in Ravencoin’s own words: “an asset is just a limited quantity of a unique symbol, and transferable to any Ravencoin address.”

In pracice this means that assets are tokens that can be issued by the Raven protocol without the need to be mined. Owners of the said assets can then prescribe certain rules and unique purposes of these assets that are independent of the Ravencoin chain.

Assets exist on the chain under “whatever name, denomination, or purpose selected by the creators of each asset, coin, or token.”

All Ravencoin tokens are transferrable and enjoy the same ease of movement as any other token or cryptocurrency.

Examples of assets

A number of examples were given of assets in the RavenCoin whitepaper, including:

Real-world, custodial assets such as gold or silver bars

Representing a share of a project such as security tokens

Virtual goods like in-game points and currencies

Representing credit such as gift cards or airline points

 

 

Matthew North

I have a passion for trading, behavioral finance, technology, travel, and writing. Contact: matthew@priceanalyses.com.