What is Ravencoin?
The Ravencoin blockchain is open-source software designed to allow anyone to issue tokens and transfer digital assets from one party to another. It was created on a fork of Bitcoin’s codebase, which means the developers copied and adapted the Bitcoin code to add additional features in pursuit of a slightly different goal.
The protocol is designed to incentivize a network of computers to operate the platform, which allows users to create and transfer new blockchain assets that can even represent real-world commodities, securities, collectibles, or even things such as airline miles or other loyalty rewards.
How Does Ravencoin Work?
The architecture underpinning Ravencoin is broadly similar to the Bitcoin blockchain, though several key differences enable the creation and transfer of tokens generated on the network.
While the code may have been copied from a fork of the Bitcoin blockchain, Ravencoin establishes its own unique network, assets, and protocols. To lower barriers to entry for mining on its network, Ravencoin uses a variation of the Proof of Work consensus mechanism called KAWPOW. In much the same way as Proof of Work functions for Bitcoin, KAWPOW secures the Ravencoin protocol, validates transactions, and distributes newly mined RVN across a network of computers running the Ravencoin software.
Who Are the Founders of Ravencoin?
In 2018, a trio of co-founders – Bruce Fenton, Joel Weight, and Tron Black – launched the Ravencoin crypto project. In contrast to most of the crypto crowd, all three were already old hands in business and software development before they embarked on this project.
Fenton was already a familiar face in crypto circles, having been a board member and executive director of the Bitcoin Foundation. Prior to his foray into the world of blockchains, he had an impressive career in investment banking, stretching back to the nineties, when he was vice president of Morgan Stanley.
Weight is a chief technology officer at Overstock.com, the parent company of Medici Ventures, which launched the Ravencoin blockchain. He had previously been the chief operating officer and chief technology officer at Medici Ventures and is a software developer with a resume that takes his career back to the dot-com bubble.
As is the case with the other co-founders, Black has also had a long and fruitful career leading several software development companies as CEO. Since 2013 he has worked on a number of crypto ventures, including as co-founder of CoinCPA and Verified Wallet, and senior software developer at t0.com. He was the principal software developer at Medici Ventures when Ravencoin was developed and launched and is currently the president of the Ravencoin Foundation.
In 2020, the Ravencoin Foundation was established as a non-profit that seeks to assist and protect the Ravencoin project.
What Makes Ravencoin Unique?
Ravencoin features four key departures from the Bitcoin code it was based on:
The ability for users to issue personalized assets on the Ravencoin blockchain with a block reward of 5,000 RVN;
Block time reduction to one minute;
A capped total supply of 21 billion RVN – 1,000 times more than BTC;
A KAWPOW hashing algorithm that is intended to mitigate the centralization of mining caused by ASIC hardware.
Recently added functionality includes the ability of token owners to broadcast messages to all other token holders using IPFS and JSON to display the messages within users’ wallets. A token voting system also enables token owners to ask token holders a question, hold a poll, and collect their votes.
In keeping with the project’s commitment to decentralization, Ravencoin chose not to conduct a pre-mine or pre-sale of its RVN coin and no amounts were set aside for the developers, for the Medici Ventures team, or for any other participants in the project.
What Gives Ravencoin Value?
The RVN coin derives its value from being crucial to running the Ravencoin network as it must be used to create new assets. Like other Proof of Work mechanisms, Ravencoin rewards miners who add new data to the blockchain once this work has been verified by the network.
By owning RVN, users can issue custom tokens with their own unique features and monetary policies. Potential growth in the popularity of Ravencoin as a medium for the creation and exchange of digital assets could lead to it becoming a store of value in the long term.
How Many Ravencoin (RVN) Coins Are There in Circulation?
Of the capped total supply of 21 billion coins, there are 15,922,027,360 currently in circulation.
Estimates vary but all point to the total supply of 21 billion RVN being minted sometime around 2080.
Other Technical Data
The block reward, currently 5,000 RVN, will halve every 2.1 million blocks (approximately every four years, depending on the block time) until it is no longer able to be halved. This means that 50% of the total market cap will have been mined by 2022, 75% by 2026, and mining will continue thereafter at a reduced rate until all 21 billion RVN have been mined. Miners will still be incentivized to continue their work throughout this time because, as is the case with BTC and other similar blockchains, they will still receive transaction fees as a reward.
How is the Ravencoin Network Secured?
Ravencoin uses a consensus mechanism similar to Bitcoin’s Proof of Work protocol to secure its network. The primary difference being that it utilizes a different hashing algorithm called KAWPOW (which replaced X16R and X16RV2 in May 2020). The KAWPOW algorithm is designed to support greater decentralization by being ASIC resistant, thereby opening it up to individuals who don’t have access to the expensive hardware needed to mine most other blockchains.
Reliance on KAWPOW hashing algorithms is combined with a fair distribution of coins, which is intended to make sure that no individual or group will be able to acquire the hash power to attempt a 51% attack or to influence the market through price shocks.
There has, unfortunately, been one known successful hack of Ravencoin. The June 2020 attack involved hackers minting 315 million RVN coins – worth about $5.7 million at the then market price. Luckily, no Ravencoin holders were directly targeted by the hackers and they were able to continue owning and using their holdings as normal.
How to Use Ravencoin
One of the uses of Ravencoin that is most likely to appeal to coin holders is its ability to act as a platform for digital tokens that represent real-world assets. Alternatively, Ravencoin can also be used to apply the security and transaction model of blockchains to new classes of assets.
Asset issuance and transfer: Users can create a new crypto asset by burning (i.e. destroying) a certain amount of RVN coins and giving their new token a unique name. Once the coin is created, the issuer can determine special characteristics for their token, such as the total number of tokens issued, how many decimal places it can be fractioned to, and its fungibility. Co-ops could find this approach useful since they could use it to allocate resources or capital to co-op participants. Since the issuer defines the characteristics of the token, it is possible to envisage them creating multiple categories of token holder, such as Class A Shareholder, Class B Shareholder, Lifetime Member, etc.
Rewards: Using Ravencoin, issuers can reward their token holders in a simple and even manner. In the event that a co-op has decided to issue its own tokens to its participants, it can select the categories that are due to be issued dividends and ensure that this process is automated, fair and secure.
Messaging: Ravencoin also makes it possible for token creators to message their token holders – making it possible to broadcast updates about a company, organization, or community. All Ravencoin tokens are, of course, fully transferable, which enables token holders to delegate their stake in a community or even sell it, should they see a reason to do so.
Ultimately, investors may also see Ravencoin as a potential store of value and could seek to buy RVN for their portfolio should they believe that market sentiment will shift to favoring decentralized blockchains where users can create their own tokens.
How to Choose a Ravencoin Wallet
Ravencoin has its own dedicated desktop wallet for Windows, Mac, and Linux, as well as providing a paper wallet generator on their website, but RVN is compatible with a broad range of third-party wallets. Those wishing to invest in or mine Ravencoin are therefore advised to do their own due diligence when selecting a wallet.
Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of RVN for more experienced users.
Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of RVN or more novice users.
Online wallets or web wallets are also free and easy to use and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your RVN, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.
Kriptomat offers a secure storage solution, allowing you to both store and trade your RVN tokens without hassle. Storing your RVN with Kriptomat provides you with enterprise-grade security and user-friendly functionality.
Buying and selling RVN, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.
Ravencoin Mining
One of the main tenets of the philosophy behind Ravencoin is that mining should be accessible to individuals with minimal hardware investment, rather than centralized in large operations able to make huge investments in hardware and energy.
As a consequence, mining RVN has been made as simple and easy as possible. Indeed, it is as straightforward as creating a wallet, downloading the relevant software, and entering the correct wallet address.
Potential miners should be aware that Ravencoin will experience a halving in January 2022, when the block reward will drop from 5,000 RVN to 2,500 RVN.
Forging Ahead with Decentralization
There is no doubt that Ravencoin provides some much-needed improvements over blockchains such as Bitcoin, particularly in terms of decentralization, token creation, asset transfer, messaging, and voting. These changes have every chance of achieving Medici Ventures’ original goal of providing users with fairer and more democratized access to blockchain structures than was previously possible. The changes also have the potential to provide businesses, organizations, and communities with a simpler and safer way of distributing assets and rewards among their members. Finally, Ravencoin also has the potential to serve as a starting point for any second-layer solutions, experiments, and business ideas or projects that could benefit from a Bitcoin-based code that has been adapted with the additional features added to Ravencoin.
With all of that potential to reach out and affect users beyond the crypto sphere, this is certainly a cryptocurrency to keep on the radar going forward.
