Blockchain technology has opened up a new world of possibilities, especially for the financial industry. With many sectors moving into the digital space, blockchain has made it possible for the financial industry to adopt digitization.
Asset digitization is one of the promising areas of blockchain. This means to represent a physical asset on the blockchain. Ravencoin is a blockchain project that is focused on enabling the asset transfer from one user to the other.
What is Ravencoin?
Ravencoin is a blockchain that is primarily dedicated to creating and peer-to-peer transferring of assets. It is entirely focused on privacy and specializes in asset transfer. Although it is possible to exchange the assets over different blockchains like Bitcoin and Ethereum, this is not their intended purpose.
The lack of specialization may lead to problems that are specific to transferring of assets. With Ravencoin, you can create and trade any assets, whether these are real-world, like land deeds or gold bars, or digital, like software licenses on a network keeping only that in mind.
How does Ravencoin work?
As Ravencoin is a Bitcoin fork, therefore, it uses Bitcoin’s UTXO model. It is different from Bitcoin because its mining reward began at 5,000 RVN compared to Bitcoin, which started with 50 BTC. The Ravencoin’s block time is one-tenth of Bitcoin in one minute, while there is a supply of 21 billion RVN compared to 21 million Bitcoin. HSA-256 hashing algorithm is implemented by Bitcoin, whereas Ravencoin uses X16R, which prevents ASIC mining.
Unlike most of the projects that are present in the industry, Ravencoin didn’t hold any initial coin offering (ICO). It also started without a pre-mine and also didn’t keep any RVN in the founder’s pool.
Asset creation and transfer process
You are required to burn some RVN and provide a token name to create an asset token. The title should be unique, and after that, you set the number of tokens, the decimal places that they have, and whether you can issue more in the future or not.
RVN rewards can be distributed to the holders of the token. The use-cases of such rewards can range anywhere from customer loyalty points to the dividends of the company.
- Unique tokens
One cannot replicate unique tokens, and they help to prove authenticity. It is beneficial in case you need any proof of ownership. Some of the assets that may use these tokens are fine art collecting, software licensing, and car registration.
- Non-asset tokens
Ravencoin also includes specialized tokens to provide non-asset functionality.
Ravencoin is a project with many potentials, as most companies want to compete with Ethereum as the best smart contract platform. Ravencoin entirely focuses on a niche, transfer of assets, and tokenization. Because it is a young project, therefore, it has not achieved huge successes, but it is in a market segment with massive competition from the crypto giants. It remains to be seen whether Ravencoin will be able to prevail in the growing asset tokenization market in the long run or not.