By Matjaz Skorjanc of NiceHash
This week has introduced one more loopy episode within the cryptocurrency sphere. Investors, crypto customers, and miners have little question felt a little alarmed.
On Tuesday, information broke that the complete cryptocurrency market (almost each coin) together with Bitcoin (CRYPTO: BTC), and Ethereum (CRYPTO: ETH) plummeted in worth resulting from mania of El Salvador starting to just accept Bitcoin as authorized tender. Although on Friday, as I write this, we at the moment are seeing indicators of restoration throughout the market.
It is tough to maintain monitor I do know. Fluctuating regulation throughout completely different international locations is creating confusion. It’s a laborious market to regulate.
However, for individuals who embarking on their crypto funding quest, let’s take a step away from the likes of Bitcoin and Ethereum and talk about the potential of what I really feel could possibly be a key Alt Coin for the longer term – Ravencoin (CRYPTO: RVN).
The Ravencoin blockchain
Ravencoin was found in 2018 and is a Bitcoin code fork that enables anybody the power to difficulty digital belongings and tokens. It’s quicker and simpler to make use of than the Bitcoin blockchain that its community is predicated on.
Ravencoin is a Proof-of-Work (PoW) blockchain designed with one particular perform – to permit customers to difficulty tokens simply and shortly. In this manner, it’s a viable various to different blockchains that create belongings, resembling Ethereum.
Tokens issued on RVN (Ravencoin) can be utilized in some ways and for various functions. These embody actual-time asset switch transactions and NFT (non-fungible tokens).
Is Ravencoin the identical because the Bitcoin blockchain?
Broadly talking, the Ravencoin community is comparable in id to different platforms like BTC. However, the Ravencoin protocol signifies that its market cap of whole provide, block rewards and mining algorithm is optimised particularly for decentralised mining and effectivity when transferring belongings.
How does Ravencoin create belongings?
Ravencoin (RVN) is a blockchain designed to effectively deal with the creation of a token. Tokens issued on this peer-to-peer blockchain community are created for a lot of causes. The solely stipulation is that the aim of the Ravencoin token is to switch belongings from one particular person to a different.
The program makes use of a coding construction that has a BTC basis. That is, the coding infrastructure of RVN (Ravencoin) was found and based mostly on a BTC fork. Therefore, Ravencoin RVN offers token issuers an alternative choice to blockchains that depend upon good contracts, resembling Ethereum.
The benefit of Ravencoin over different safe community platforms is that its consensus mechanism and the safety mannequin for computer systems is designed for extra decentralized mining.
Again, that is supreme for crypto safety. We proceed to see crypto jacking assaults damaging our business i.e. cyber criminals utilizing malicious software program (malware) to hack into centralized mining pc energy and assets to mine cryptocurrencies or steal cryptocurrency wallets.
Who backs Ravencoin?
Ravencoin (RVN) is backed by a subsidiary of Overstock.com known as Medici Ventures. The blockchain challenge launched in 2018 together with its RVN token/cash.
There was no pre-sale or ICO meant to supply extra democratic entry to the challenge than we’ve seen with different key platforms.
As there was no pre-sale or pre-mine of its cash, no tokens have been put apart for advisors, members of workers, Medici Ventures folks, builders, any board member, or different people concerned within the challenge or service early on.
The Ravencoin Foundation
Two years after launch, in 2020, the Ravencoin Foundation was created. This is meant to make sure the challenge turns into impartial from Medici Ventures.
The Ravencoin crypto is open supply, which signifies that virtually anybody can be a part of with the power to contribute to the builders’ code (one other good signal of decentralization).
A novel mining algorithm
While its design is much like Bitcoin (BTC), Ravencoin builders made a number of vital alterations to the protocol. These adjustments permit the creation, switch of cash and transactions launched on the community.
In the identical approach as BTC, Ravencoin makes use of a Proof of Work (PoW) mechanism for community securities and safety in opposition to malware.
However, its use of hashing algorithms is completely different. The hashing algorithm utilized by Ravencoin known as KawPoW, which changed the sooner X16R.
What is completely different about Ravencoin’s hashing algorithm?
KawPoW is designed to permit extra decentralized mining of tokens than the algorithm utilized by BTC, which known as SHA-256.
In particular phrases, KawPoW resists mining by means of the usage of ASICs (utility particular built-in circuit chips).
This specialist pc {hardware} is just obtainable at a excessive worth and is usually seen as creating industrial-scale mining extra worthwhile than that performed by particular person miners. It is commonly seen as a means of higher management and safety. In the identical sentence, it might provide a barrier to entry for some low-value miners.
Ravencoin isn’t the one crypto that has launched hashing algorithms to try to fight the usage of ASICs. Other crypto firms, resembling Litecoin, use comparable algorithms for a similar causes.
Industrial mining utilizing ASICs can result in centralized miners, which impacts the complete community’s safety and vulnerability to malware assaults on computer systems.
BTC fork that’s asset conscious
Tokens may be issued on BTC’s unique blockchain, however this could result in issues. BTC nodes are designed to acknowledge the issuance of cash/tokens. Therefore, each transaction that intends to switch a crypto token on the BTC blockchain should additionally ship sufficient BTC to be acknowledged by the protocol to make it legitimate.
If the consumer finds that they’ve unintentionally spent this BTC throughout this transaction, the token is destroyed.
Ravencoin works otherwise to unravel this drawback with out resorting to the introduction of good contracts or a non-PoW mannequin.
Features that separate the BTC and Ravencoin consensus embody the worth of the block reward. At the time of writing, Ravencoin’s reward is 5,000, whereas BTC’s is 6.25. Data does change because the cash fluctuate in worth. Block time can also be completely different, with BTC taking ten minutes in opposition to Ravencoin’s one minute.
The whole asset provide is completely different, with RVN’s market cap set at 21 billion versus BTC’s market cap set at 21 million.
As we’ve already touched on, Ravencoin builders additionally modified the code knowledge utilized in BTC’s protocol to permit issuing of cash and the switch of belongings on the community to be simple and accessible.
Examples of RVN crypto use in the actual world
Ravencoin points cash/tokens that symbolize extra belongings from the actual world, together with digital items, shares of inventory, rewards, gold and plenty of others from one get together to a completely different one.
In 2018, for instance, Chainstone Labs (a digital securities organisation) issued greater than 12 million digital shares on the Ravencoin blockchain.
Ravencoin may also be used to create NFTs utilizing MangoFarmAsunits, which is an RVN pockets platform.
Furthermore, the Binance Smart Chain (BSC) gives a tokenized RVN model. This can be utilized for buying and selling, lending and borrowing in DeFi (decentralized finance) apps (additionally obtainable on desktop computer systems).
Unique infrastructure
Ravencoin makes use of a distinctive infrastructure as a community based mostly on Bitcoin that gives customers options that allow them to commerce and launch tokens.
As there aren’t any good contracts concerned, Ravencoin is a good choice for a firm or business that should launch a digital token to make use of largely for asset switch.
The newest crypto information means that it’s turning into increasingly more in style with those that need to difficulty tokens.
Well positioned within the business.
We assume that Ravencoin is without doubt one of the cash nicely positioned to draw the eye of many miners following Ethereum’s transfer to Proof-of-Stake (PoS) in January 2022. If you might be a miner, I would definitely preserve your eye on the information surrounding Ethereum’s POS to maintain monitor of updates that would impression your mining operations break-even.
The challenge is a one-use case particular blockchain with a single function asset switch through blockchain. This consists of many various belongings, together with property deeds, for instance.
Users can create and switch possession on their blockchain simply and shortly. With Ethereum basically altering the way it works, we will count on RVN to change into extra in style with miners. It gives a good aspect of management for customers we’re discovering.
Ethereum – what’s occurring for informational functions?
As talked about above, Ethereum is within the means of transferring to PoS. This signifies that there will probably be no extra mining of cash utilizing the Ethereum blockchain.
NiceHash has about 27% of the complete Ethereum hashrate. Miners will due to this fact transfer to different cash when the swap to PoS is full and can naturally select probably the most worthwhile cash when this occurs. These embody Ravencoin and Ergo, for instance.
Ravencoin worth predictions
A fork of Bitcoin, Ravencoin can facilitate a lot quicker transactions.
As it’s function-constructed to switch belongings, the entire course of is less complicated and extra accessible for tens of millions of customers.
As the challenge grows, extra folks will use the coin within the creation of belongings. This will, in flip, improve the Ravencoin worth and the curiosity locally for mining it (we’re actually seeing this amongst NiceHash customers – internationally, not simply in Slovenia).
A latest Ethereum fork, which is without doubt one of the phases crucial for transferring in direction of PoS, despatched the Ravencoin worth up by about 60%.
As the challenge continues to be comparatively new, having solely launched in 2018, it has monumental potential to develop additional. Given the market volatility, particularly this week’s information of El Salvador accepting BTC as cash, NiceHash are only one Slovenian firm making sense of the loopy sphere of cryptocurrency – however we count on the Ravencoin worth to proceed to rise incrementally as Ethereum strikes additional in direction of its closed mining sentence turning into PoS.
Although we’re having promising dialog with NiceHash customers and miners, to discover the challenge’s future and discover out extra, we’ve invited the lead developer Tron Black to our Talkshow program in September 2021.
About Matjaz Skorjanc and NiceHash
Matjaz Skorjanc is co-founder and Mining Manager of Slovenian firm NiceHash, the world’s main cryptocurrency mining providers supplier and cryptocurrency coin market. Škorjanc based NiceHash in 2014 after recognizing a hole within the crypto mining marketplace for a consumer-pleasant free alternate for patrons to bid in opposition to one another overtly.
Based in Slovenia, each Škorjanc and NiceHash are vocal advocates for decentralization and the potential of crypto. NiceHash believes in a blockchain and decentralization, the place everybody has equal entry to a new monetary customary of cash. Matjaz Škorjanc is a Slovenian skilled in blockchain tech, working methods, mining software program and networks.
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