What is Ravencoin & How does it Works?

What is Ravencoin?

Ravencoin is open-source software built specifically to enable users to issue tokens and transfer digital assets. It is based on a fork of Bitcoin code, adapting all the robust features of Bitcoin while making additional improvements to meet the evolving needs of modern users.

Ravencoin has been built with a maximum supply of 21 billion RVN, unlike Bitcoin, which has a maximum supply of 21 million. It follows a unique algorithm called KAWPOW with a 1-minute block time. The Ravencoin blockchain allows users to create and transfer blockchain assets that represent real-world goods, securities, collectibles, loyalty rewards, etc.

Features of Ravencoin

Here are some unique features of Ravencoin that set it apart from other cryptocurrencies.

1. KAWPOW Algorithm

Ravencoin follows the Proof of Work (PoW) consensus mechanism just like Bitcoin. However, it follows a unique KAWPOW algorithm which is designed to be ASIC-resistant. It prevents centralized power and encourages decentralized mining.

2. Easy Tokenization

Ravencoin enables users to create and manage their custom tokens on its blockchain. Hence, users can tokenize their real-world assets like real estate, stocks, artwork, and in-game items and transfer them on the blockchain using Ravencoin as the underlying currency.

3. Quick Messaging

The Ravencoin blockchain platform enables asset holders to send messages directly to token holders, encouraging them to better manage their tokenized assets. Since they can communicate with each other, the users will have greater control over their assets.

4. Decentralization and Security

Ravencoin inherits Bitcoin’s decentralized nature but with more enhancements. For instance, Ravencoin provides a more secure platform for managing and transferring assets without depending on intermediaries.

How does Ravencoin Work?

Launched as a fork of Bitcoin in January 2018, Ravencoin is an open-source project that enables its users to send payments to anyone at any time. The logic behind the Ravencoin blockchain project is to facilitate the instant transfer of assets like tokens from one holder to another.

Though Ravencoin is a fork of Bitcoin, it has a few distinguished features that make it unique. For instance, Ravencoin has a maximum supply of 21 billion and follows a unique algorithm called KAWPOW. Besides, it has a block time of 1 minute and the issuance schedule or original block reward of 5000 RVN.

The KAWPOW algorithm prevents the centralization of crypto mining by utilizing over-the-counter graphic processing unit (GPU) memory and computing capabilities. Thus, users can use GPU to mine Ravencoin rather than buying ASIC miners.

Originally, the KAWPOW algorithm was derived from ProgPOW and ethhash. However, it is enhanced to improve the distribution of Ravencoin to everyone.

Since there seems to be less possibility of future algorithm forks, there may be ASIC miners coming in the future for Ravencoin mining. Apart from the ASIC-resistant KAWPOW hashing algorithm, Ravencoin has some unique advantages.

Ravencoin gives equal opportunity to mine or purchase RVN. It is totally community-driven and open-source, enabling everyone to leverage the Ravencoin blockchain. Moreover, no pre-mine, no ICO, and no coins are held for founders or developers, fostering benefits equally to everyone.

Use Cases of Ravencoin

Ravencoin is ideal for various use cases as it offers easy tokenization of assets. Below are some practical use cases of Ravencoin.

1. Real World Asset Tokenization

Organizations can tokenize real-world physical assets like real estate and commodities and trade them on the Ravencoin network. Thus, they can have digital ownership of their real-world assets.

2. Decentralized Finance (DeFi)

Ravencoin enables users to build decentralized financial systems and other applications. We can expect more DeFi capabilities with Ravencoin in the future.

3. Digital Securities

Ravencoin is ideal for creating and transferring non-fungible tokens (NFTs) and digital collectibles. Additionally, Ravencoin can also be used to issue securities like shares, bonds, and derivatives in a tokenized form.

4. Mining

Ravencoin is more suitable for home miners and small-scale miners as it follows the ASIC-resistant KAWPOW algorithm. In other words, Ravencoin encourages miners to mine Ravencoin without buying specialized hardware like ASICs.

How to Store Ravencoin?

You have many storage options to secure your Ravencoin tokens. Here are some of them.

1. Official Ravencoin Wallets

Official wallets come as the first option to store your RVN tokens.

~ Desktop Wallets

They are the ideal option for storing your Ravencoin. They are the official desktop application and are available for various operating systems, such as Windows, Mac OS, and Linux. Moreover, these wallets provide features like backup seeds and running updates from developers.

~ Mobile Wallets

The official mobile wallets are more suitable for users who prefer quick access to their Ravencoin. These wallets for available for both iOS and Android and offer end-to-end encryption and PIN protection.

2. Hardware Wallets

The second best option is hardware wallets. Here are some hardware wallet options to store your RVN coins.

~ Trezor

A Trezor hardware wallet can be paired with a Chaintek wallet and used to store RVN tokens. It is quick to set up and a highly secure way to store your Ravencoin.

~ Ledger

The two hardware wallets from Ledger, Ledger Nano S and Ledger Nano X are ideal for storing Ravencoin. All you need to do is install the Ravencoin app and use the Electrum-Ravencoin wallet to manage your Ravencoin tokens.

3. Some Other Wallet Options

Here are some practical wallet options to store your RVN tokens.

~ Trust Wallet

It is one of the most secure mobile wallets, enabling users to buy, sell, swap, and store RVN tokens. For additional security, it has a security scanner and encrypted cloud backup.

~ Pocket Raven

It is a web-based wallet that is handy to use. However, it is not as secure as other wallets and is not recommended for large holdings.

~ Paper Wallet

Paper wallets are simple yet the most effective way to store your Ravencoin. Since they are completely offline, they are more secure and free from online hacks.

You can choose any of the above-listed wallets to secure your Ravencoin. However, it is always advisable to follow the best practices to secure your wallet, such as not sharing your seed phrase or private keys with anyone and staying updated about recent cyber hacks.

How to Buy Ravencoin?

Buying Ravencoin(RVN) tokens involves a few simple steps.

Step 1: Choose a Reliable Cryptocurrency Exchange

Select the reliable cryptocurrency exchange that offers Ravencoin trading. For example, Binance, KuCoin, and Uphold are some reputed crypto exchanges that you partner with to buy Ravencoin. However, ensure that these exchanges are available in your area and abide by local regulations.

Step 2: Create Your Account

Once you finalize the crypto exchange, you can provide the required identification documents and create an account. For an additional layer of security, it is highly recommended that you enable two-factor verification.

Step 3: Add Funds

Deposit Fiat currency by transferring funds from a bank account or by using a credit card, debit card, or other payment methods. Then, you may be required to buy a cryptocurrency like ETH, USDT, or BNB initially, which you can use to buy Ravencoin (RVN).

Step 4: Buy Ravencoin

Now, go to the crypto exchange’s spot market. Select Ravencoin (RVN) as the cryptocurrency you want to buy. Enter the desired amount. Confirm the transaction. Finish the purchase.

Step 5: Store Your Ravencoin

That’s it. You can store your Ravencoin in your preferred wallet. Later you can transfer them to a non-custodial wallet for better control and security.