Launched in 2018, the Ravencoin project is a blockchain platform that makes it easier to issue crypto tokens. In other words, an alternative to Ethereum and other similar blockchains, but with its unique differences. The tokens issued on Ravencoin can have almost any use, including NFTs (non-replaceable tokens) and coins linked to tangible assets.
The project is similar in architecture to Bitcoin. Still, it is optimized to increase decentralization and efficiency by modifying the mining algorithm, the reward for mining blocks, and the total issuance amount.
Features of Ravencoin
The crypto project was launched with the support of Medici Ventures. In 2020, the Ravencoin Foundation was created to separate and become independent from Medici Ventures. At the launch, an ICO was held without pre-sale, aiming for a democratic and fair distribution of tokens. No RVN coin was reserved for the project's developers, consultants or other early adopters. Of course, the protocol is open source, so anyone can use it and contribute to the cryptocurrency ecosystem.
Notably, Ravencoin is suitable for mining video cards. If we take Bitcoin as an example, in recent years, it requires such a large amount of energy to produce that it has led to the centralisation of mining in a few regions where the cost of electricity is low. This is one of the reasons to criticize bitcoin: the situation negates decentralization, the main advantage of the cryptocurrency.
The Ravencoin blockchain tries to solve this problem in the following way:
- Generates computational tasks that conventional hardware can solve.
- Applies unique algorithms that prevent the need for specialized hardware to mine coins.
Ravencoin uses a mining algorithm known as KAWPOW. It is designed so that, theoretically, almost anyone with a computer with a sound enough video card can mine Ravencoin, thus creating a truly decentralized system and lowering the entry threshold for a broad audience.
Initially, the network used the X16R algorithm. But over time, it lost its resistance to ASIC (mining with special high-power integrated circuits). So in May 2020, Ravencoin introduced a new hashing algorithm and an update known as KAWPOW.
KAWPOW is a Proof-of-Work algorithm and is a slightly improved X16R. It is the third algorithm developed by Ravencoin to counter ASIC mining. The coin can be mined using video cards and processors.
RVN token and its role in the system
To use the basic functionality of the network and create a new cryptographic token, the user must burn (i.e. destroy) a certain number of RVN coins and come up with a unique name for his token.
Also, during the creation process, the issuer can set custom characteristics for the new asset, such as:
- the total volume of supply;
- the possibility of division and the number of decimal places.
Among other things, each issuer can distribute rewards to its token holders in RVN. For example, incentivising the community to perform specific actions or paying dividends.
Although it is not a top blockchain, Ravencoin is widely used in the crypto space. This platform is used primarily to issue tokens representing real-world assets such as gold and stocks (such tokens are called tokenized assets). In early 2018, Chainstone Labs issued over 12 million digital shares on the Ravencoin blockchain.
The downside of the platform is that it focuses specifically on token issuance and much less on smart contracts or other additional utilities.
A version of the RVN coin is also available on the BNB Chain blockchain. It can be used for lending and trading in decentralized finance (DeFi) applications in the BNB Chain ecosystem.