Non-fungible tokens were one of the things that caught public attention this year. Ravencoin is a platform that was created specifically with unique assets in mind and gained some traction too. What will you find in this Ravencoin beginner’s guide? The ChangeHero team will cover the features of the protocol, and how Ravencoin differs from Bitcoin and Ethereum. It goes without saying that we’ll cover the currency RVN and how to get it, too.
What is Ravencoin?
Ravencoin is an open-source blockchain project that specializes in the creation and peer-to-peer transfer of assets. It enables users to create and trade any real-world or digital assets on a network.
The protocol is based on a fork of the Bitcoin code. The changes it makes are focused on allowing tokens to be issued on the Ravencoin blockchain. These tokens can have whatever properties the issuer of the token decides. This includes quantity, name and nature: securities or collectibles.
How did Ravencoin start?
What is Ravencoin’s main idea? The inspiration for the name came from the Game of Thrones series, as cited in the whitepaper: “In the fictional world of Westeros, ravens are used as messengers who carry statements of truth. Ravencoin is a use-case focused blockchain designed to carry statements of truth about who owns what assets”.
The core developers launched Ravencoin on 3 Jan 2018, on the ninth anniversary of Bitcoin. Perhaps, the closest to a public face and leader of development figure is Tron Black, a contributor and author of many specifications to the protocol.
The project has some prominent backers. For example, Bruce Fenton, former Board Member of The Bitcoin Foundation, is an advisor to the team. Overstock, an American Internet retailer, has made a multi-million dollar investment into the project through a subsidiary.
How does Ravencoin work?
As we have mentioned, Ravencoin’s design principle is to allow simple digital asset issuance and transfer without the need of smart contracts. AlthoughBitcoin and Ethereum have similar abilities, these networks have shortcomings that Ravencoin is trying to solve. In Ethereum, there is no native recognition of tokens. And in Bitcoin, asset information needs to be embedded in a transaction by third parties. The Bitcoin protocol itself is not aware of these assets, which comes with the risk of assets getting lost.
In Ravencoin, asset tracking is hard-coded into the protocol. The tradeoff is that each asset has to have a unique name, much like web addresses having unique names. This can be both a hurdle and a useful feature. Asset names have to follow certain rules and the more assets are issued, the more problematic it might become. However, it prevents the kind of situation when assets have the same name but differ in contract address, which can confuse users.
As a fork of the Bitcoin Core protocol, Ravencoin is based on a UTXO model. Instead of accounts, it uses unspent outputs to help track the origins and movements of funds. Ravencoin works in a similar fashion to Bitcoin in a lot of ways. This is because its creators deemed the original protocol to be the most secure way of transferring assets. On top of the Bitcoin core code, they introduced changes to make it suitable for asset creation,transfer, and management. Ravencoin allows the asset issuer to (securely) message asset token holders, pay out dividends to asset token holders, and in the future issue votes to asset token holders.
- Block reward of 5,000 RVN (means higher supply and issuance rate than in Bitcoin).
- Block time of 1 minute.
- Total coin supply of 21 billion.
- Ravencoin mining algorithm KAWPOW (ProgPoW modified for Ravencoin) allows for more decentralized mining by being ASIC-resistant. The idea behind choosing a GPU-intensive mining algo is to make profitable mining available for everyone, which helps decentralizing the network ;
- Addition of Asset & Sub-asset issuance and transfer, unique assets, dividends/rewards, (secure) messaging, IPFS metadata, restricted assets (which help with KYC requirements), and an additional planned feature is voting.
What is RVN?
Ravencoin arrived at the market in January 2018, at the start of the bear market. Despite that, it managed to do well at times. For example, in 2018 when RVN listings were being announced. In summer 2019 fintech company tZero introduced RVN to its supported currencies. This news helped RVN reach its current ATH: $0.080258. From then on, the price has been on the decline.
In winter 2020, RVN followed a brief bull market like most of the cryptocurrencies did. After getting rejected once at $0.04, it didn’t get a chance to recover because of a market crash in March. The growth was not too fast, and the news about a protocol exploit also damaged the trend.
How much is Ravencoin worth today? At the time of writing, RVN is $0.014325. Its circulating supply is approximately 7,643,165,000 RVN and the market capitalization is $109,489,787 USD (rank 99).
What is Ravencoin used for?
RVN is the utility token of the Ravencoin platform. It is necessary for creating and sending the assets across the network. For example, creating an asset requires burning 500 RVN. Making an asset unique inquires an additional fee of 5 RVN. In design, issuers of tokens can also pay the rewards to asset holders in RVN.
Ravencoin vs. Bitcoin and Ethereum
So what is Ravencoin’s difference from Bitcoin and Ethereum?
Ravencoin changes the issuance schedule and block time of Bitcoin. Ravencoin mining algorithm, KAWPOW, is also different, and supposed to be more decentralized and democratic.
Solutions like colored coins or Rootstock for asset issuance have been developed for the Bitcoin protocol. However, these solutions work only as a second layer to the base protocol.
One of the major use cases for Ethereum is issuance of assets, too. Unlike Ethereum’s smart contracts, Ravencoin’s assets are unique in name (and not only contract address). In Ethereum, every time an asset is interacted with, a smart contract has to be called. In Ravencoin, operations with assets are hard-coded into the base layer.
Is Ravencoin controversial?
Last July, Ravencoin news reported a shortcoming in code made an attack on the network possible. As a result, the total supply of RVN has increased by 1.5%. As we already mentioned, it had an impact on the price. However, the reputation of the project also took a hit.
Despite being ASIC-resistant, the X16R algorithm was not immune to ASIC penetration. In late 2019, the community decided to implement a new hashing algorithm. But it also was changed again five months later to a current one (KAWPOW).
In a community driven project such cases are inevitable because in real life not all members operate in good faith. Risks like these are natural for open-source projects, and Ravencoin is still very young. The community believes that these battle tests will make Ravencoin stronger in the long run.
Partnerships and future plans
What is Ravencoin’s future? Ravencoin is a work in progress: developers are still rolling out features like voting and more advanced GUIs that make it easier to work with all the new functions..
Ravencoin community promotes the project as a community effort. This idea falls in line with the grassroots ethos of the project. Some of the partners that expressed interest in Ravencoin are American painter Rick DeMont and Tinaga Resorts Corporation. The former uses the Ravencoin protocol to issue certificates of authenticity for his works. The latter chose the project for their Securized Token Offering to raise money for building the resort.
Social Media posts
So grateful to be visiting the Medici Ventures, @Overstock @Ravencoin & @tZERO facilities, the lightning rod of innovation here in Utah
.#brockthevote #vote2020 #campaign2020 #blockchain #crypto pic.twitter.com/uMrIb17MGc
— Brock Pierce (@brockpierce) October 14, 2020
Not every coin can boast having an endorsement of a presidential candidate! During this year’s campaign, Brock Pierce proved himself as a proponent of technology and innovation.
Ravencoin is still an experimental project, but the survival after the three years, getting through unexpected events, has proven its strength as a ‘public blockchain.’ Use cases will be good nutrients for the growth. It is passing its adolescence days. Kaw!$rvn #ravencoin
— Bradarling (@digitalwolfgang) December 6, 2020
As user Bradarling put it well, Ravencoin is still in its early days. The success of the ecosystem depends on the use cases, and this network seems to offer plenty of them.
Once it starts moving watch out!
— CaptainCrypto (@CaptainCrypto33) November 30, 2020
User Captain Crypto here to remind you about long-term strategy. And dips are for buying!
How do you get Ravencoin?
Now that we have reviewed all the fundamental features of the project, let’s get some practical advice in this Ravencoin Beginner’s Guide.
Of course, Ravencoin is available for trading on some exchanges. A friendly reminder that trading on an exchange comes with the hassle of creating an account and depositing funds into an exchange’s custody.
What is the alternative? Use ChangeHero! It’s extremely easy and you can trade it against any currency supported by the service. ChangeHero is a non-custodial instant cryptocurrency exchange, so here you won’t have to worry about losing access to your funds or setting up an account.
How to store Ravencoin?
You will need a wallet if you don’t have one. Ravencoin has developed a wallet specifically for RVN. However, if you want to hold and manage multiple assets in one place, we recommend Exodus. It is available on desktop and mobile devices (iOS and Android). In Exodus wallets, you can seamlessly exchange cryptocurrencies thanks to an integration of ChangeHero.
How to exchange RVN?
A Ravencoin Beginner’s guide would be incomplete without instructions. How to get RVN using ChangeHero? In five simple steps:
- Choose the currencies on the home page, amounts and the type of exchange. Provide your RVN wallet address in the next step and check the amounts;
- Send in a single transaction the sum of cryptocurrency you will be exchanging. For Fixed Rate transactions you have 15 minutes before it expires;
- From here on, you won’t need to do anything. At this step we are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives;
- As soon as the exchange has been processed, your RVN is on the way to your wallet. Congratulations! We’ll be happy to hear your feedback.
Our support specialists are available 24/7 in the chat on our website or through the email: [email protected].
- What is Ravencoin? It is a protocol, forked from Bitcoin, that was created specifically for asset issuance and management;
- RVN is a native utility currency of the protocol, which can be used for rewards, fees and burned to create assets;
- Ravencoin is a community-driven project, which defines its strengths and weaknesses alike;
- Ravencoin mining seems to be popular with enthusiasts. The mining difficulty is lenient and the hardware needed for it is affordable.
Ravencoin is putting an emphasis on asset issuance, and in the reality where every token can be tokenized, it has all the chances to succeed. Now we are curious about what is Ravencoin’s future, too!
If you enjoyed our Ravencoin beginner’s guide, make sure to check out our blog for coverage of other crypto projects and subscribe to our social media for updates: Twitter, Facebook, Reddit and Telegram.