What is the Ravencoin protocol?

The Ravencoin protocol focuses primarily on issuing tokens through its blockchain. Driven by community rather than competition, this platform could offer a great alternative in the world of tokenisation

Want to make your own security token and trade worldwide with it? The Ravencoin protocol could well be the answer. Inspired by the truth-carrying ravens of Westeros in Game of Thrones, Ravencoin claims to “carry statements of truth about who owns what assets”.

A platform dedicated to tokens  

The Ravencoin protocol, based on a fork of the Bitcoin code, gives users ultimate freedom when it comes to tokens. Issuers can determine all the characteristics of their tokens, from quantity limits and security types to collectible statuses. Its community can issue, track, and transfer their tokenised assets. These assets can include:

  • Project shares such as royalties
  • Virtual goods such as in-game items
  • Physical and digital assets such as land deeds or gold
  • Credit such as gift cards or airline miles

Ravencoin is free and open source. All token transfers take place on the peer-to-peer blockchain, instantly and worldwide.

A fairer world for mining

The Ravencoin cryptocurrency (RVN) is issued fairly. The project directly addresses the historical centralisation of mining that occurs on Bitcoin’s blockchain. This centralisation is thought to be the result of Application Specific Integrated Circuit (ASIC) hardware used by miners to increase efficiency and competition.

To keep mining decentralised and the reward mechanism fair, Ravencoin randomises the order of 16 different hashing algorithms. This specially developed x16r algorithm keeps the playing field level between users and makes ASIC miners incredibly hard to develop. Instead, RVN is mined publicly and transparently using the Proof-of-Work mechanism. In the event that an ASIC miner is developed, Ravencoin will completely change the hash algorithms.

This emphasis on decentralisation has always been part of the Raven ethos as the platform launched without an ICO. It is a project driven by community rather than competition. Coins are available to everyone – with nothing being held for developers or founders of the project.

Ravencoin vs Bitcoin

Although based on a fork of Bitcoin, Ravencoin looks to resolve some of the shortcomings of the original cryptocurrency. Ravencoin prioritises security, user control, privacy, and censorship resistance. This is achieved, in part, by standing apart from Bitcoin.

Everything from its mining algorithm through to its future roadmap brings something to the table that isn’t being offered by Bitcoin. Some key differences offered by Ravencoin include:

  • A block reward of 5,000 RVN in comparison to 50 BTC
  • A total coin supply of 21 billion rather than 21 million
  • Future additions of rewards, messaging, and voting

The future of Ravencoin

Although the platform only launched in January 2018, there is a clear roadmap in place for the future. This includes solving Anti-Money Laundering and Know-Your-Customer issues. Ravencoin also experienced a huge value hike in March 2019, giving support to the view that the future of cryptocurrency success could lie in tokenisation.

To find out more about tokens and their role in the future of cryptocurrency, download our definitive guide. In it, you’ll discover what tokens are, several use cases for them, and the importance of tokenomics.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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