Bitcoin, popularly called the ‘king of coin,’ is a model for many emerging cryptocurrencies, including Ravencoin. Compared to the original parent currency, Ravencoin uses similar technology with a few modifications as its unique selling point. One of such variations is a special algorithm that allows Ravencoin to be mined on regular computers.
Unlike Ravencoin, mining Bitcoin and other cryptocurrencies are energy-intensive, costly and often requires specialist hardware. Nevertheless, Ravencoin aims to maintain Bitcoin’s first vision – decentralisation, which we will discuss as we progress. Considering the many cryptocurrencies out there, could Ravencoin be the heir to the throne? Let’s find out.
Brief History
Ravencoin was first launched in 2018 and was subsequently funded by Medici Ventures, a blockchain-focused auxiliary of Overstock.com. It was explicitly designed to set up a mining ecosystem where mining did not require Application-Specific Integrated Circuits (ASICs) and could be done on average computer setups.
What is Ravencoin?
Ravencoin is an open-source program forked from Bitcoin. As previously stated, the primary objective of Raven coin is to create an avenue for instant transactions from one user to the other.
Over time, barriers have limited cryptocurrency mining to only experienced miners. When random systems that use AISC mine more for themselves, it overrules a top blockchain principle known as decentralisation. Ravencoin, on the other hand, aims to remain decentralised by using the ever-evolving AISC resistant algorithms to stay ahead.
The lead developer of Ravencoin, Tron Black, stated that ASIC miners found a way to game Ravencoin’s original algorithms, giving them a leg up on computers with regular processing power.
In an attempt to fix the problem, the Ravencoin development team further customised its algorithms. So, even if miners decided to use ASICs, their devices would still behave like regular computer systems. Essentially, this setup evens the playing field and makes mining fair.
How does Ravencoin works?
Ravencoin uses a mining algorithm called KAWPOW, designed to address the problems created by Application-Specific Integrated Circuits (ASICs) miners, ranging from centralisation to monopoly.
According to the X16R algorithm whitepaper, the development team stated that the design of ordinary hashing algorithms used in this system lends itself to the systems used by Application-Specific Integrated Circuits (ASICs) miners.
There have been two algorithms used in the past:
- The first algorithm – X16R, was designed to fix the problem caused by AISC miners by interrupting the hashing algorithm orders. It implemented similar algorithms used in SHA512 and X15 but with the X16R, whereby the ordering of its algorithms was modified based on the previous block’s Hash. With time, it became possible for AISC’s to mine X16R, and the community voted to create new algorithms that would fix the unfair distribution AISC’s made.
To mitigate and balance the potential efficiency upgrades that AISC miners might make to their hardware, the community has conducted two algorithm votes which led to forks. The decision was made to strike a balance between regular consumer-grade hardware and AISC miners hardware.
- KAWPOW is the latest algorithm by the Ravencoin community. It aims to resolve the problem of centralisation caused by the AISC miners by implementing counter Graphics Processing Unit (GPU) memory methods. As a result, it will allow the majority of consumer-grade GPUs to mine Ravencoin fairly. The KAWPOW algorithm is the birth child of ethhash and ProgPOW algorithms with certain modifications intended to maintain fair mining and ensure adequate distribution of Ravencoin to every user.
As of this moment, there has been no talk of a new algorithm fork in the nearest future. However, it could spark the development of new ASIC technology to counter existing systems, but none have been found as of writing this article.
Governance
Ravencoin functions on a ‘No On-chain system of governance’. Therefore, there is no single body or individual that can make discussions on the protocols. Instead, all decisions are voted upon by the community. It makes use of the BIP9 rule of governance when modifications are needed on the system.
Native Coin
The Official coin for Ravencoin is RVN, and tokens can be used to issue assets and make transfers to holders. Also, they can be used for anything according to the holder’s needs, ranging from energy credits, land deeds, virtual goods, security, Airline miles, car ownership, etc. All payments, as well as rewards, can be made through the native coin, RVN.
The RVN coin is the official governance token for the Ravencoin blockchain. According to its white paper, users must destroy many RVNs to make a new cryptocurrency asset. The total number of RVN coins in supply is 21 billion, and as the blockchain grows, more exchanges are making use of this digital currency.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.