What is Ravencoin? Your ultimate guide
What is ravencoin? In this article, we will tell you about the blockchain and the crypto
The ravencoin cryptocurrency, or or RVN coin, has been generating interest recently, leading people to ask questions such as what is ravencoin, how does ravencoin work and is ravencoin worth mining.
What is ravencoin?
Ravencoin is based on an open-source version of the all-powerful Bitcoin blockchain. Basically, this means that the developers behind RVN took the code behind Bitcoin and tweaked it to make it suitable for what they wanted to do.
Ravencoin is based around crypto mining, also known as proof-of-work, rather than staking, or proof-of-stake. In order to mint RVN, people have to use their computers to solve a series of equations which get progressively harder.
The idea behind the crypto was to allow anyone using it to issue their own crypto tokens for whatever reason, so long as that reason was as a means of transfer. RVN’s protocols are, the people behind it claim, intended to help decentralise usage. One of the ways Ravencoin says it supports decentralisation is it does not use nodes or computers that help the processes involving RVN move along. Many crypto networks use nodes and pay rewards to the people who serve as nodes, but Ravencoin does not do this.
Ravencoin and bitcoin
While Ravencoin uses proof-of-work, or crypto mining, in order to generate new coins and to verify transactions, it is not just a carbon copy of the Bitcoin method. As the computations required to mine bitcoin have got progressively harder it requires more computing power. This, in turn, requires bigger and more energy intensive computers, putting bitcoin mining out of the reach of potential users who cannot afford to buy an incredibly powerful computer. RVN’s mining algorithm, called KAWPOW, aims to get around this issue by utilising the graphic processing unit (GPU) memory and computing capabilities of everyday computers which, it is hoped, will allow most people to carry out ravencoin mining.
Although that is the main change from the Bitcoin code algorithm to the RVN one, there are other differences. For instance, there is a fixed amount of rewards for people who mine enough to add a new block to the blockchain of 5,000 RVN. There is also a fixed block time of one minute and a fixed RVN supply of 21 billion. These all help make Ravencoin very much its own thing, rather than an average, everyday fork of Bitcoin.
The burning issue
To create tokens on the Ravencoin blockchain, potential token creators have to take some RVN and burn, or destroy, them. In effect the crypto is designed, at least in part, to be destroyed. What the creators then do is come up with a unique name for their new crypto token. They have to decide how many tokens will be issued, its fungibility and to how many decimal places it can be fractioned into.
Anyone making a token can pay out rewards to that token's users in RVN, meaning that the coin can continue to circulate and have usage other than its own burning.
There is also the issue of communication to look into. Ravencoin allows people who create tokens using its blockchain to contact anyone who holds their tokens. This means that token holders can be kept informed if they need to vote on proposals involving their crypto. Also, because RVN coin is transferable between users of different tokens on the blockchain, holders can delegate across platforms in the chain.
But who are the people behind Ravencoin and how did it come into being?
The story so far
Ravencoin is the brainchild of Joel Weight, Bruce Fenton and Tron Black. Their backgrounds reflect mainstream business to an extent that is absent in a lot of crypto organisation bosses.
Weight, for example, also serves as chief technical officer of online retailer Overstock and has previously been chief operating officer and CTO of the venture capital company Medici Ventures. Black also worked at Medici Ventures and has been CEO of a number of software companies, including Blue Squirrel, Verified Wallet and Wintronix, the last two of which he founded. Finally, Fenton is a US Navy veteran who served as vice-president of the banking giant Morgan Stanley before working as chief investment officer at Atlantic Financial and spending three years on the board of the Bitcoin Foundation.
Ravencoin was set up in 2017 and, in keeping with its use of a modified form of the Bitcoin blockchain, it had a similar start to the crypto giant. When it was released, anyone could buy the coin. There were no coins allocated to people working on the project, neither was there an initial coin offering (ICO) nor any other form of pre sale.
As the company said in a post on the Medium blogging website:
“Ravencoin is free and open source and will be issued and mined transparently with no pre-mine, developer allocation or any other similar set aside. Ravencoin is not designed to be cash. Ravencoin is intended to prioritize user control, privacy and censorship resistance and be jurisdiction agnostic, while allowing simple optional additional features for users based on need.”
Finally, as we have already seen, there is a total supply of 21 billion Ravencoin, of which 9.56 billion are in circulation.
Ravencoin can be burned to create new crypto tokens on the blockchain, but it can also be used to pay out rewards.
There is a fixed total supply of 21 billion ravencoins, of which 9.56 billion are currently in circulation.
In theory it can be. However, it can mean spending a lot of time and effort in doing so for it to become profitable. Also remember that cryptocurrencies such as ravencoin can be very volatile, and that prices can go down as well as up, so mining might not be as profitable as originally hoped.
You can buy ravencoin at a variety of cryptocurrency exchanges. It is not available on Currency.com yet, but we will let you know if and when it is. Before you invest in ravencoin, though, you will need to do your own research and remember to never invest more than you can afford to lose.