Ravencoin (RVN): A P2P Blockchain With Decentralized Mining

Ravencoin launched in 2018 as a proof of work (PoW) blockchain designed to do one thing extremely well: Serve as an alternative to Ethereum and other token-capable chains by facilitating the efficient issuance of tokens for asset transfer. RVN tokens issued by Ravencoin can represent real world assets or NFTs — and be used for almost any purpose. 

The project’s design is similar to Bitcoin in a number of ways, but its proprietary mining algorithm, block rewards, total supply and several other characteristics are optimized for efficient token transfer and greater decentralization.

What Is Ravencoin?

Ravencoin is a peer-to-peer (P2P) blockchain cryptocurrency network optimized for transferring assets from one token holder to another. Deliberately limited to this specific application, the project aims to solve the problems associated with asset exchange.

For its part, Ravencoin isn’t on a quest to reinvent the wheel. After all, there are already plenty of token standards for the Ethereum blockchain, such as ERC-20, ERC-223 and ERC-721, just to name a few. However, according to the Ravencoin team, there’s currently a lack of specialization in regard to the transfer and exchange of assets.

Arguably the most pronounced problem identified by the folks at Ravencoin is the need for a base currency, such as ETH, to cover transaction costs. If a network’s fees are high, asset transfer unnecessarily involves added steps, hassles and costs. Ravencoin strives to create a network specifically optimized to seamlessly transfer all digital assets and real world goods.

With a UTXO coding infrastructure based on a Bitcoin fork, the project provides token issuers with an alternative to Ethereum and other smart-contract–focused blockchains. Beyond this, Ravencoin points to its security model and decentralization-friendly consensus mechanism as primary highlights and advantages over other crypto platforms.

History of Ravencoin

The Ravencoin project was first introduced on the blogging platform Medium in November 2017. In the initial post, the team behind the new digital currency project drew a connection to the popular Game of Thrones TV show. Shortly after, Ravencoin was born.

Backed by Overstock.com and created via a fork in the Bitcoin code, Ravencoin launched just two months later, in early January 2018. Its launch date, not so coincidentally, just happened to be on the ninth anniversary of Bitcoin’s launch in 2009.

Built as an open-source project and decentralized development community in the spirit of The  Cypherpunks, Ravencoin didn’t have an initial coin offering (ICO). They also didn’t pre-mine, have a pre-sale or implement any master nodes.

Instead, similar to Bitcoin’s launch, the Ravencoin team kept its token supply completely democratized, without setting aside any tokens for investors via private or public token sale. In fact, in an effort to provide more equitable and democratic access, no RVN tokens were allocated for the developers, Medici Ventures (a subsidiary of Overstock.com), or any other early project participants. The crypto protocol is completely open-source, so virtually anyone can contribute to its code.

How Does Ravencoin Work?

The Ravencoin blockchain was developed to simplify the transfer of unique assets from one person to another. While transferring digital assets via the Bitcoin blockchain can be done, Bitcoin’s existing nodes are unaware of embedded assets in the code. This also means Bitcoin must be involved with every asset transaction.

Ethereum also allows asset transfers. However, with Ethereum, there’s no way to differentiate between assets with the same unique name.

With Ravencoin, you won’t run into these problems. Not only can you exchange assets without the need for Bitcoin or another base currency, but you can benefit from a Bitcoin-like platform that project developers describe as being “fully asset aware.”

While the code for the Ravencoin blockchain was copied from that of Bitcoin, its proprietary network and asset are unique, with their own unique protocol rules. Several other parameters and details were modified in order to incentivize communication between network users, and the issuing of RVN tokens.

To ensure its network remains in sync, Ravencoin utilizes KAWPOW, a variation of the popularly used PoW consensus mechanism. In an effort to make mining Ravencoin tokens on its network easier, secure the network, validate transfers, and mint and distribute RVN, KAWPOW is used by each of the networked computers running Ravencoin software.

We’ll discuss KAWPOW further in just a minute. For now, however, just know that since Ravencoin tokens (RVN) are needed to create new assets, they play a vital role in operating and maintaining the Ravencoin network.

To create new crypto assets, token issuers must provide their token with a unique name, and burn a specific amount of RVN. Upon creation, special token characteristics — such as the number of tokens issued and its fungibility — can also be defined.

Therefore, by burning and buying RVN, users are able to issue unique custom tokens with specific features and predefined monetary policies. Token issuers can freely distribute RVN rewards (to token holders and miners) as a “thank you” for contributing to decentralization by beefing up the blockchain with new data.

Features of Ravencoin Blockchain

Ravencoin’s mission is to help facilitate decentralization through greater specialization in asset exchange. To this end, it employs a number of unique features that differentiate it from other digital assets and asset transfer platforms primarily driven by smart contracts.

KAWPOW

Similar to Bitcoin’s PoW consensus mechanism, KAWPOW is used by networked computers running Ravencoin software to secure and sync the network, validate transactions and facilitate the distribution of newly minted RVN.

Procured from a combination of ProgPoW and Ethash, KAWPOW features certain modifications that improve Ravencoin’s distribution mechanism. Most importantly, however, the algorithm lowers the barrier of entry for those interested in mining on the Ravencoin network.

By resisting the use of application-specific integrated circuits (ASICs) and facilitating the use of consumer-grade GPUs for mining the network’s token, virtually anyone is invited to mine — with no need for both expansive and expensive hardware.

In promoting decentralization, KAWPOW even takes things a step further by leaving network validation in the hands of the community, rather than a select group. In doing so, the network’s protocol is more impartial and unbiased than those of smart contracts and other blockchain networks.

Full Asset Aware Protocol Level System

Ravencoin set out to establish a crypto solution similar to Bitcoin, but one that was fully asset-aware. This led to the development of its Full Asset Aware Protocol Level System.

This asset-aware system provides users with three major advantages:

• It protects assets from accidentally being destroyed.

• It provides security for underlying assets by maintaining market value, and by functioning only through wide distribution and a strong mining community.

• It allows a single client to issue, transfer and track tokens.

Only a system that is fully asset aware can seamlessly achieve these three things.

Rewards

Ravencoin also facilitates the payment of rewards — and even dividends — in its native token. Whenever an issuer wants, RVN rewards can be issued to a single token holder or automatically divided and sent to asset holders.

For example, an overworked executive with a passion for tacos and the open road could create a token representing their new “taco truck” business. Let’s say they create 20,000 TACO tokens at $0.10 per token. Given this scenario, $2,000 could be raised to help fund the business. With a single command, the token issuer can send reward or dividend payments in RVN.

This is just one example of the flexibility — built into Ravencoin — which blockchains operating via smart contracts typically lack.

Unique Tokens

As noted, token issuers can distribute RVN to their token holders as a way of incentivizing certain actions, issuing dividends or rewarding community involvement. In addition to defining whom to reward, a token issuer can also give their token special characteristics which define its fungibility, the number of tokens issued, how many decimal places to fraction it to, and so on.

In other words, the first person to create and name the token is the owner of the project, and can define its unique characteristics, including its name.

To issue new tokens and create new digital assets, a predetermined amount of RVN must be burned, and a unique name must be given to each token. No two tokens can have the same name. Therefore, if a token is issued with the name “Stripe,” for example, no other token can be issued with the same name.

Messaging Stakeholders

One problem common among tokens/digital assets is the lack of available communication between token issuers and token holders. In addition to its strong mining community, comprehensive distribution system and high level of asset security, Ravencoin also solves this ongoing communication problem.

Despite being a Bitcoin code fork, the Ravencoin network is optimized to provide messaging capabilities and voting features. This means asset issuers/token creators can message stake/token holders whenever it’s time to vote on proposals.

Game developers, activist organizations, nonprofits, corporations and virtually any other entities can issue tokens for certain users and message them directly. Unlike email and other messaging systems, the messaging is only enabled for token holders, which makes the token transferable.

As owners of transferable tokens, RVN token holders can assign their vote to other network users. They can also sell their stake of the token and community whenever they decide.

Voting

With today’s existing financial systems, communicating with shareholders — let alone holding a vote — is tremendously difficult. A Nasdaq-listed company, for example, would have to spend a fortune just acquiring the mailing addresses of all of its shareholders. When it does, information on voting procedures and a proxy voting form must be sent out via snail mail. It’s borderline ridiculous.

To say Ravencoin has simplified the process would be a gross understatement. With Ravencoin, RVN tokens are created and distributed to represent votes. These vote tokens can be assigned to individual holders. Then, these token holders can cast votes simply by sending tokens to certain addresses on Ravencoin’s network, after which the votes are tallied.

Privacy

Financial systems function much better when physical or digital assets are fungible and able to trade in a fluid, frictionless manner. It’s often overlooked, but privacy is fundamental in achieving this functionality.

Like any quality project, Ravencoin seeks to strengthen token holder privacy as much as possible, while technological improvements — such as messaging and rewards — continue being made. The mission is to preserve privacy, in much the same way that cryptocurrencies based on smart contracts and UTXO keep public addresses separate from user identities.

Mining Algorithm

The biggest difference with Ravencoin is in its X16R mining algorithm. Despite essentially being built on Bitcoin code and using a similar consensus mechanism for network security, RVN uses the X16R rather than Bitcoin’s SHA-256 mining algorithm to maintain a higher level of network decentralization.

The RVN team is fully committed to this and has developed X16R to be ASIC-resistant. This means the algorithm is designed to prevent mining by industrial-scale operations with expensive, specialized computer hardware. Instead, it’s designed to promote mining by hobbyists and your everyday Joe. This is what network decentralization looks like, and the RVN mining algorithm is designed to make this a working reality.

On a side note, Litecoin and other cryptocurrencies have also employed similar ASIC-resistant algorithms for the very same reasons, in an effort to limit centralization among miners and enhance network security.

Ravencoin Use Cases

Similar to Ethereum, Ravencoin is specifically designed to distribute tokens via its blockchain and create custom tokens within minutes. Such tokens can be limited in number, issued as securities, designated as collector’s items and given all manner of conceivable properties. According to Ravencoin, “everything can be developed in the form of Ravencoin tokens.”

Here are just a few of Ravencoin’s many possible applications:

• Company shares with RVN dividend distribution

• Securities tokens representing ownership shares

• Tokens representing limited partnerships, co-ops and other profit-sharing arrangements

• Proof of ownership for land deeds, precious metals, etc.

• Gaming items and other collectible digital assets

• Service tokens for using or accessing a service

• Tickets for concerts, sports and other events

Needless to say, RVN has more use cases than just about any other crypto out there today.

RVN Tokenomics

In addition to its updated algorithm and the ability for RVN users to issue tokenized digital assets on its network, Ravencoin’s tokenomics also help differentiate it from Bitcoin. For instance, with RVN, the maximum token supply is set at 21 billion versus 21 million for BTC. Other differences include an initial block reward of up to 5,000 RVN rather than 50 BTC, and a block time of only one minute instead of ten.

Ravencoin Road Map

You can find Ravencoin’s official road map published here. It consists of nine phases, of which all but one are now complete.

Phase One — Ravencoin Launch

Status: Completed January 2018

Phase Two — Assets

Status: Completed November 2018

Phase Three — Rewards

Status: Completed December 2019

Phase Four — Unique Assets

Status: Completed December 2019

Phase Five — Messaging

Status: Completed June 2020

Phase Six — Voting

Status: Completed June 2020

Phase Seven — Compatibility Mode

Status: TBD

Phase Eight — Mobile Wallet Compatible Mnemonic Seed

Status: Now complete

Phase Nine — Restricted Assets

Status: Now complete

RVN Price Prediction

The RVN token was first released in March 2018 and since its initial launch, it has seen its fair share of highs and lows. In February 2021, RVN peaked at $0.2854. While the price trajectory of RVN has somewhat followed the overall crypto market since then, Ravencoin’s price growth is showing signs of promise. Since there’s plenty of growth in both the RVN and market cap metrics, Ravencoin doesn’t need to outpace the top crypto projects in order for RVN’s price to increase. In fact, it could increase significantly without putting a dent in the pricing of other cryptos.

As for future price predictions, various companies such as Gov Capital and PricePrediction are rather bullish for both the short and long term. This is due largely to RVN’s obvious fundamental value. Users appreciate the ability to mine RVN fairly, build custom tokens and transfer digital assets with ease. Considering these favorable factors, the conditions are good for RVN growth.

That said, WalletInvestor’s AI-derived price prediction of RVN suggests less than stellar price growth, with the forecast that RVN’s price will sit close to where it’s currently at in five years' time. 

As the actual price may fluctuate for various reasons, including uncertainty in global markets and regulations, keep in mind that none of the price predictions should be considered investment advice. Individual research is always recommended when making any financial decisions.

Where to Buy RVN

Like other cryptos, you can buy, sell and trade RVN on a number of cryptocurrency exchanges.

Bybit, for example, offers an excellent trading experience. To begin buying RVN on Bybit, you first create and register your account. This involves providing your personal details and undergoing an identity check (KYC).

With your Bybit account now created, you can deposit funds into it via bank transfer. Then, simply click on the RVN ticker to pull up its chart and enter a long position by placing a Buy trade. From here, you can also sell your RVN tokens and exit your position whenever you like.

Is Ravencoin a Good Investment?

From the perspectives of companies such as Gov Capital and PricePrediction, Ravencoin is a sound crypto project with plenty of potential. While other cryptocurrencies try to compete with Ethereum to overtake it as the top smart contract platform, RVN has taken another route by focusing on the transfer of assets and tokenization.

As a relatively young project, RVN hasn’t achieved the successes of Cardano, EOSIO and others in its segment. However, it does have a strong value proposition and is supported by an active community and corporate companies such as Overstock.com.

Yet despite its faster, more secure network, dynamic asset exchange and tokenization capabilities, and strong push toward decentralization, whether Ravencoin will come out on top as a choice investment remains to be seen. Nonetheless, it’s not a longshot to say investors should view RVN’s future in a positive light.

Closing Thoughts

The competition is fierce, yet despite lying low and flying under the radar, Ravencoin has amassed support from both large investors and a steadily growing community excited about having an equal voice in the function and future of the network. With developers consisting of some of the industry’s most respected names, it will be interesting to see just how high this raven will fly. One thing is for sure: Ravencoin has stood up well so far.