What is Ravencoin?
Ravencoin is a peer-to-peer network for creating and exchanging tokenized assets. The main idea is to develop a convenient and secure cryptocurrency network where users can quickly exchange any asset: gold, fiat currencies, securities, electronic tickets, stocks, etc. The users can pay for the creation of new tokens and their transfer on the network using the internal RVN coin.
Ravencoin is a Bitcoin-based protocol that adds some features specifically focused on allowing tokens to be issued on the Ravencoin blockchain. These tokens can have different properties: it can be limited in quantity, named and be issued as digital assets, or as collectibles.
The Ravencoin project was launched in January 2018. Its creators are a group of developers led by a programmer 'Tron Black' and a member of the Bitcoin Foundation board Bruce Fenton. The developers refused to conduct ICO, presale, or coin pre-mining. Moreover, they did not conduct a marketing campaign and advertising program. Ravencoin (RVN) was created under the influence of the "Game of Thrones": In this popular fantasy, ravens serve as messengers and heralds of truth in the Seven Kingdoms. According to the idea of developers, RVN coin should play the same role in the blockchain industry.
How is Ravencoin used?
Each user on the network can create their own security token within minutes and start to trade it. Newly created tokens in the Ravencoin network can be equivalent to gold bars, silver coins, physical Euros, land deeds, comics, energy credits (electricity, wood, gas, oil, wind). They can also represent various virtual goods, such as tickets to events, (for example, a Baltimore Ravens game with the ability to resell without the worry of duplicates being made), a license to allow the activity, an access token to use a service, and finally in-game currency and items, transferable to other gamers, even outside of the game platform.
The Ravencoin system has three main advantages:
- It allows users to conduct quick transactions
- Has an increased level of a decentralization
- Eliminates the need for a trusted third party
How does Ravencoin work?
Ravencoin is an open-source cryptocurrency, it has its own repository on GitHub for independent developers. In addition, a special messenger allows them to communicate privately with each other. The official website says that RVN is a coin that was designed especially in order to counter the industrial mining. Ravencoin uses one of the randomly selected sixteen hash algorithms for this purpose. Such a system complicates the development of ASIC miners and allows anyone to join the mining process without the need to use ASIC-devices.
The developers implemented the X16R algorithm that has attracted the incredible attention of miners from around the world. The advent of X-algorithms was an important stage in the evolution of cryptocurrencies. The main feature of these algorithms is that they use X (11, 13, 15 оr 17) number of hashing algorithms. Nonetheless, this fact allows big corporations to create ASICs for mining. ASIC (Application-Specific-Integrated-Circuit) is a small computer designed specifically for a limited set of processes. ASIC is a generic term that contains millions of components: microprocessors, ROM, RAM, EEPROM, and other important details.
Later the developers added the so-called Tiger hash function and implemented a new X16RV2 in Ravencoin technology. Theoretically, now the network is completely protected from ASICs, none of them are able to work on X16RV2 algorithm. Besides, the project team is ready to expand the list of hash functions or make other changes to the protocol if a device on integrated circuits for Ravencoin mining will appear on the market.
Ravencoin is always in the TOP 3 cryptocurrencies in terms of mining profitability. Now the reward for the block creation is 5,000 RVN, but it will be halved approximately every 4 years in order to avoid inflation.
RVN mining is not so easy it requires a good understanding of the settings, because any changes in the algorithm may require a complete reconfiguration.