Bitcoin introduced us to a new dispensation of money where we no longer rely on government or centralized institutions to mint or manage money. However, mining new coins on Bitcoin and several other cryptocurrencies isn’t as decentralized and simple as it ought to be.
Recently, more people want to be able to do more with crypto platforms. They want to be able to send unique tokens to another user in an easy way. They also want a simple way to convert their valuable assets like gold, silver, and real estate to tradable tokens.
Ravencoin was built to satisfy these demands by providing a simple and efficient way to create assets, issue new tokens and manage them. In this article, you will learn about Ravencoin, how it works and the various use cases of its RVN coin.
What is Ravencoin?
Ravencoin is a Proof-of-Work blockchain that is specially designed to allow users to create and issue tokens. It was launched in 2018 to serve as a better alternative to existing blockchains that support token issuance such as Ethereum.
The tokens distributed on Ravencoin could represent several assets like NFTs, real estate, and gold. This is made possible by the unique technology that Ravencoin uses which is similar to Bitcoin. Although its slightly different from Bitcoin in terms of its total supply, block rewards, and mining algorithm which supports a decentralized token allocation method.
Anyone can create and distribute tokens on Ravencoin for any reason they desire as far as the main utility of the token is to serve as a means of exchange.
Ravencoin’s codebase was built from a fork of Bitcoin, and the project offers token issuers a better alternative to smart-contract based blockchains like Ethereum. Ravencoin’s decentralized consensus mechanism and security model gives it an advantage over other platforms.
Ravencoin is backed by Medici Ventures, a subsidiary of Overstock.com and was launched without an ICO or pre-sale. Since Ravencoin had no pre-mine or pre-sale of its coins, no Ravencoin developer, advisor, Medici Ventures personnel, or other early project participant had access to RVN coins before launch
In 2020, Ravencoin introduced the Ravencoin Foundation to enable it to become independent of Medici Ventures. The Ravencoin crypto protocol is open source, which allows anyone to modify and contribute to the code.
Ravencoin Use Case: Mining Reward
RVN coin is used to reward miners who verify transactions and mine new RVN coins on the blockchain. They are rewarded after the new blocks have been verified by other nodes in the network.
Mining activities allow the Ravencoin network to be run in a decentralized manner and help in producing new coins into circulation. The miners also secure the network against potential attacks by contributing their hashing power to the network.
Before January 2022, miners used to earn 5000 RVN for every valid block added to the blockchain. However, just like Bitcoin Ravencoin’s block rewards are always halved every four years. So, the current block reward for miners is 2500 RVN. Halving will continue to take place until all the 21 Billion RVN coins have been mined.
Mining RVN is quite simple and easy to engage in. Ravencoin makes mining accessible to individuals with little hardware resources. Miners can contribute energy from their personal computers to the network rather than investing in big hardware.
Ravencoin Use Case: Asset Issuance and Transfer
Ravencoin allows users to create new crypto assets by burning some amount of RVN. By owning RVN, users can issue custom tokens with their unique features and monetary attributes.
Once a new token has been created on Ravencoin, the issuer can specify the unique characteristics for the token, such as the total number of tokens to be issued, the number of decimal places it should have, and if it should be fungible or interchangeable.
Large Co-operations could leverage this useful asset creation feature on Ravencoin to tokenize and allocate shares for their shareholders. Since they can define the characteristics of the token, they could create tokens according to the categories of shareholders, such as Class A Shareholder, Class B Shareholder or Lifetime Member
In 2018, Medici Ventures completed a $3.6 million transfer of equity using the Ravencoin blockchain. The transfer was a digital securities token transfer representing a 29% stake in Chainstone Labs. At the moment, more than 23,000 assets have been tokenized and issued on the Ravencoin network.
Ravencoin Use Case: Minting NFTs
RVN coins can be used by artists to mint their new art collection on RVNFT. The platform works like an NFT Art Agent. which markets new artists and their works on RVNFT social media, its mailing list, and other various promotions and marketing channels.
RVNFT helps artists to get their work added to NFT Marketplaces, Virtual NFT Auctions, and Virtual NFT Gallery Events RVNFT also provides NFT design curation and consultation services to artists who need help with visualizing their ideas.
Before an artist can mint a unique NFT on the Ravencoin Network, they must first create a ‘Main Asset’ on the network. The cost of creating this is 500 RVN. However, RVNFT removes the 500 RVN fee which acts like a Barrier for users to mint their own Unique NFTs. This makes it easy for artists to mint NFTs.
Artists who mint several artworks through RVNFT will enjoy some discounted rates when purchasing large quantity NFT and Sub-Asset packages. Packages of 5 or more NFTs will receive a discounted rate of 5 RVN per NFT. Sub-Asset Packages of 3 or more Sub-Assets will receive a discounted rate of 100 RVN per Sub-Asset.
Ravencoin Use Case: Paying for Goods
Theplaza allows both local and international buyers on its shopping site to pay for fashion items with RVN coins. Theplaza has a wide international network of fashion partners that sorts out unique and high-quality Asian clothes and accessories to upload on the site for users.
Individuals can purchase great quality fashion items that reflect the latest trend in Asian fashion. This is because the team members go as far as travelling throughout Asia and the Middle East to source exclusive designs that meet high-quality standards for users to buy conveniently from their site.
All these quality items cost few RVN coins as theplaza focuses on selling fashion items at affordable prices,
Theplaza and Vinsent Wine
Vinsent Wine marketplace is an e-store that helps wine lovers discover and buy new wines using RVN coin. It has a mobile app that enables users to acquire wine futures from boutique wineries and receive early access to fine wines before they are made available to the public
Vinsent makes use of Ravencoin blockchain to ensure that customers get the exact wine they ordered for. Vinsent prides itself in owning a broad selection of wine from renowned wineries such as Dauntless Wine, Conti Caponi, and Château Palmer.
Vinsent seeks to fix some gaps that exist in the wine industry distribution model by reconnecting consumers directly with wineries.
What Makes Ravencoin Unique?
Ravencoin has some unique features that set it apart from the Bitcoin code it was based on. One of these is the ability for users to issue unique assets on the Ravencoin blockchain. This brings about the true vision of decentralization that Bitcoin aims for.
In addition, Ravencoin has a lower block time of one minute compared to Bitcoin’s 10 minute block time. It also has a fixed total supply of 21 billion RVN which is 1,000 times more than BTC’s total supply.
Ravencoin also has a KAWPOW hashing algorithm that is intended to reduce the centralization of mining caused by ASIC hardware. This enables miners to produce new blocks with simpler hardware. This makes it more attractive for more miners to join the Ravencoin network.
Furthermore, Ravencoin’s dedication to decentralization, made it not perform a pre-mine or pre-sale of its RVN coin and no amounts were set aside for the developers or any other members of the team. This makes the RVN coin one of the few coins with a fair launch in the crypto market today.