What Is Ravencoin: Easy Guide For Beginners And Enthusiasts
The main point of Ravencoin is to make asset transfers from one party to another on the blockchain easier and more efficient. Ravencoin uses the specific ASIC resistance algorithm called x16r. The platform is ASIC resistance because it always changes the order of the hashing algorithms.
The whitepaper states that Ravencoin is a ‘’blockchain platform optimized for transferring assets such as tokens from one holder to another.’’ Ravencoin is a fork of the Bitcoin code with some major changes including the reduced block time reward, 21 billion issued coins and the messaging capability.
What Is The Major Problem?
Currently, the major problem is that there is no open source and a decentralized blockchain that is designed mostly for the asset transfer. While Bitcoin and Ethereum are now capable of transferring asstets, they are not designed to do so and this is why they have many shortcomings. The disadvantage of using Bitcoin is that the network doesn’t natively know if the assets are embedded which could later lead to the users accidentally destroying the asset. If someone tries to send Bitocin with the embedded asset to an exchange, the asset will later be destroyed. All asset transfers therefore require small amounts of Bitcoin which could be very expensive.
The Ethereum tokens such as ERC20 and ERC721 support smart contracts and asset transfers. However, these can also be very confusing as there can be multiple ERC-20 tokens with the same name which could lead to some serious mistakes as the unique identity of the asset is very important to make sure that both of the parties receive the correct asset.
Ravencoin As Solution
According to the whitepaper, the solution ‘’is to create a bitcoin-like system that is fully asset aware.’’ This will prevent everyone from accidentally destroying the asset thus removing the issue of needing to send Bitcoin with every transaction. The unique assets can be created by the Ravencoin protocol users without having to be mined. The tokens are later easily transferable and can serve whatever purpose the creator of the token wants them to serve. These work just like tokens with a limited supply that represent the asset and can be easily transferred to a ravencoin address.
In addition, the messaging and voting features of Ravencoin are included in the network which will enable the token issuers to send one way messages to the stakeholders. By using this messaging system all of the token holders can be notified when to vote. The vote tokens can be created and distributed to each token holder so each holder can later cast votes by sending tokens to specific protocol addresses.
The RVN token is burned in order to create further unique asset tokens. The issuer determines how big the number of tokens issued is going to get and the number of decimal places. The issuer also determines how the users will be allowed to issue more of the same token in the future. Currently, 500 RVN tokens are needed to issue an asset. There are 1.2 billion circulating RVN with a maximum supply of 21 billion tokens.
The most notable members of the entire Ravencoin crew include Bruce Fenton, Troy Black and Patrick Byrne. Fenton is a board member on the Bitcoin foundation and he is also the CIO of Atlantic Financial Inc. Black is among the leading developers of the project and he is also currently working for Medici Ventures which is a subsidiary of Overstock.com. Patrick Byrne is the CEO of Overstock.com and he is a strong supporter of the Ravencoin project. His company invested millions of dollars into the Ravencoin project.
Pros and Cons
One of the negative sides of the crypto project is the dilution of the tokens. Just like Bitocin, the RVN token has a big inflation rate that has to be eliminated. The newly mined tokens will make up for the larger percent of the total circulating token supply so the investors will need to see some major growth in the short-term to simply break even. The significant price increase won’t happen soon enough during a bear market which could mean a lot more pressure for the token in the short term.
The traders like Ravencoin because it is a truly open-source and decentralized project that makes the asset transfer much more effective than the current systems in existence. The project’s sole focus on becoming the best platform for asset transfer makes it much more likely to succeed. Patrick Byrne and his involvement is a major encouraging element for Ravencoin because the crypto project has a strong support and it is well funded. Ravencoin has a strong community which is also very supportive and grows in numbers continuously. RVN is still with a small crypto market cap by we are very excited to see its future performance.
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