Coin Review - RavenCoin

What is it?

Much like Bitcoin, Ravencoin is a digital peer-to-peer open sourced network that allows users to trade assets, pay/receive dividends and send shareholder communications.

Founded one year ago, Ravencoin used the Bitcoin code repository as its foundations to leverage all of the positive community efforts that developed the such a strong and formidable code. Aligned with its mission, Ravencoin developers built one key functionality on top of Bitcoin which allows users to tokenise and trade real-world assets. 

What problem is it solving?

Currently, assets either are not digitised and stored on sheets of paper (land deeds, contracts etc) or they are digitised and traded on a centralised platform (e.g. shares on the ASX, commodities on the private equity through a third party such as Computershare or Link Market Services). Both systems work fine, but through tokenising assets efficiencies can be gained including:

  • Near-instant transfer of assets, which in the current system takes t+(2 days) for asx stocks or t+(4-6 weeks) for privately held shares

  • Simpler divisibility of assets (cafes, property, gas stations, collectables, etc can all be tokenised and traded)

  • Automation of dividend payout, voting and shareholder communications

Ravencoin was developed to bring together the strongest parts of Bitcoin (chain security and finality) and Ethereum (smart contracts). By doing so, Ravencoin have developed a secure, community driven project where assets users can tokenise assets in as little as 5 minutes by following a simple questionnaire to define asset parameters (walkthrough here).

 What are RVN Tokens?
Ravencoin's native currency is the Ravencoin (RVN). RVN has three predominant uses on the platform:

  1. To create and issue assets on the Ravencoin network, users will have to burn 500 RVN. Burning tokens is crypto terminology where tokens are sent to an address where they can never be recovered (i.e. reducing the total circulating supply). 

  2. Dividends to asset holders will be paid in RVN - when dividends are due to be paid, the asset owner will need to purchase RVN tokens to pay shareholders.

  3. Transaction fees - To transfer any of the created assets on the Ravencoin network required a small amount of RVN to process the transaction.

Why do we like it?

  • In a year when ICO's and marketing were rampant, Ravencoin was a refreshing outlier having been built by the community, for the community. It had no ICO, pre-mine (coins mined by the team before anyone else has the opportunity to mine), no marketing, community driven.  

  • It was founded on the Bitcoin github codebase which means it has a lot of the features that have made Bitcoin so strong (security, finality).

  • Simplicity of asset issuance - by following a simple guide many traditionalists and baby boomers would not have issues creating an asset (something that cannot be said of trying to build an Ethereum smart contract!).

  • ASIC resistant mining algorithm is more inclusive for the community and leads to a fairer and larger network distribution - Bitcoin's mining is dominated by enterprises who spend millions of dollars on hardware to mine (purchasing ASICs which as over 200,000 times faster than the best graphic cards, giving individuals minimal opportunity to mine). 

  • Having the Bitcoin foundation allows it to benefit from Bitcoin second level solutions like Lightening and RSK.

  • Automated token-holder communication, voting and dividend distribution - just ask any publicly traded stock owners how long it takes to get the registry of all addresses or bank accounts of stockholders and send out communications or payments (or for voting how many of them actually fill in the forms and mail them back...).

  • 7,000 assets created in the first week of mainnet launch.

Why do we not like it?

  • As the goal was to make asset tokenisation and trading as simple as possible, Ravencoin have not included any regulatory specific optionality (and do not plan to). This means any assets that are governed by regulatory bodies (i.e. every publicly traded stock) would most likely not even consider Ravencoin.

  • Ravencoin would still need an additional authenticity process to ensure assets are legitimate and stored where the token creator says they are (e.g. if I were to tokenise a bar of gold, how would you know I had that bar? What if I had it today when I sold you the token but lost/sold it subsequently?

  • Currently Ravencoin has a large inflation rate as the circulating supply is low (relative to total eventual supply one all coins are mined) and the mining reward is high.

Disclaimer: Magnet Capital does not accept any liability for any financial decisions made on the basis of the information provided. The above opinion does not constitute financial advice and should not be taken as such. Magnet Capital urges you to obtain professional advice before considering any investment decisions

Egor Sidelska