The Ravencoin name was inspired by the hit TV series, “Game of Thrones.” As found on the Ravencoin website, the founders of RVN explain their project like this:
“In the fictional world of Westeros, ravens are used as the messengers who carry statements of truth. Ravencoin is a use case specific blockchain designed to carry statements of truth about who owns what asset.”
All in all, the Ravencoin protocol aims to make it easier for people to conduct real-world asset transfers of valuables such as gold or land deeds. It’s also going to be used for the transfer of digital assets like software, gaming items, collectibles, etc. Also, it will be used for the secure communication between two parties in an electronic peer-to-peer network. In this guide, we’ll go through everything that concerns the Ravencoin protocol and how it works.
Ravencoin is a free open source platform designed for the specific use case of transferring assets such as token-backed assets from one holder to another.
While it may seem that with the development of the great blockchains such as Bitcoin and Ethereum, transferring assets between different parties is already a solved issue, it is not exactly the case. Neither Bitcoin nor Ethereum was specifically designed for facilitating ownership of additional assets, due to the fact that they simply focused their attention on other features.
In Bitcoin, the original rules governing the blockchain and protocol must be adhered to and so this means that Bitcoin nodes are not able to register that assets are being embedded into tokens.
This means that for every asset transaction made on the Bitcoin network, there must be an accompanying bitcoin transaction fee, even if the transaction is to simply send the asset.
This has a result of unnecessary transaction fees whenever assets are transferred. Additionally, the other major disadvantage is that assets can easily be ‘destroyed’ if they are sent to an exchange or wallet.
In the case of Ethereum, the smart contracts network is not able to natively recognize smart contract tokens and this can cause some confusion due to multiple ERC20 tokens with identical names. The only distinguishing factor between contracts with identical names is the contract hash and this can confuse users or be used with malicious intent to scam others.
With a view to solving the above issues, ravencoin was created. The solution, according to the whitepaper, is to “create a bitcoin-like system that is fully asset aware.” This prevents someone from accidentally destroying the asset and removes the issue of needing to send Bitcoin with every transaction.
Ravencoin is built on a fork of the Bitcoin code. It has been implemented with a smaller block reward of one minute and the addition of asset creation and message capabilities.
Uniquely named assets (tokens) can be created by Raven protocol users without the need for mining. The tokens are easily transferable and can serve whatever purpose the creator of the token wants them to serve. Basically, these are just tokens with a limited supply that represents an asset and can be easily transferred to any Ravencoin address.
The tokens can represent anything unique and scarce such as artwork, rare video game items, stocks and securities, gift cards, concert tickets, gold, land deeds and much more.