Assets on blockchain – Ravencoin – I det här inlägget skriver min vän Alexander Eriksson en sammanfattning av vad Raven Coin är för något och hur det kan användas. Inlägget är på Engelska och går även att läsa på Medium via den här länken!
What really got me into assets on blockchains at first, was through articles written by Bruce Fenton. Bruce is a cool guy, he has experience from Wall Street, and has like many other “Wall Streeters” decided to move into the decentralized world of cryptocurrencies. He uploaded an informative introduction series of security tokens and how the system of handling securities in the U.S. works today. (Hint, it’s pretty messy to say the least)
Before starting, I want to define assets in this post;
Assets can be whatever anyone wants to create a token (representation) for. E.g. coins/tokens, securities, in-game assets, loyalty points…
As with any other usecase specific blockchain, there are blockchains focusing on asset issuing as well. Some asset issuing blockchains, such as Smartlands and Polymath, have a narrow stance and focus entirely on issuing security tokens. Polymath allows you to have a dashboard where you can search through different providers, such as advisors, KYC/AML, marketing, and legal. Smartlands have a different approach where they require projects who wants to issue their security tokens to send an application to them. These forms include a general application form, a business plan, and two years of financial statements. Then Smartlands will make a decision and act as guidance through the tokenization process.
Both Polymath and Smartlands aim to make it as easy as possible for projects to create security tokens by providing a one stop shop, with tools for the tokenization process. To make this possible, they have traditional management teams with CEOs, and operational staff on board.
Then you have Ravencoin. Ravencoin is a “general” asset issuing protocol. Not only security tokens can be created on top of the protocol, but rather any asset the issuer sees fit. The project is community driven (much alike Bitcoin), and have no official positions, such as CEOs or operational staff. Instead, the community develop the project together. Unlike Polymath and Smartlands, Ravencoin cannot act as a “centralized” one stop shop, as it is 100% decentralized. It is up to each and every asset issuer to create value out of the token (asset) they create on the Ravencoin blockchain.
“Since there is no central authority over the project, people can build what they want.” — Bruce Fenton 2018
Ravencoin’s features and functions
The core function of Ravencoin is to transfer assets on a secure, decentralized, blockchain. As it is a code fork of the Bitcoin protocol, it has similar features, with some tweaks made.
- Ravencoin is utilizing Proof of Work mining with an algorithm called x16R.
- The total supply is set at 21 000 000 000 RVN (Ravencoin’s native coin). However, the total supply will never reach 21 000 000 000 RVN as creating assets force the creator to burn (send to an unknown address) 500 RVN.
- Block reward for miners is 5000 RVN. This will be divided by two every 2 100 000th block (on average every four years).
- Average block time is one minute.
Allows for unique assets
Assets on blockchain with Ravencoin – By burning 500 RVN, you can create your own asset in form of a token. Asset names are unique, and issuers of assets can decide if they want to make their unique assets reissuable (similar to issue additional stock) or not. It is extremely simple to create your own assets, but it might be harder to get the name you want as all names are unique. As the Asset layer went live in the beginning of November, around 7000 assets were created, all with unique names. Popular names such as “APPLE” and “SAMSUNG” are already taken. As of writing, around 15 000 unique assets have been created.
You can search for unique assets in the Asset Explorer:
Messaging, voting, and dividends
Improvements and core functionalities are constantly being added. Messaging, voting, and dividend features are in the pipeline and is planned to be released with new software upgrades shortly. These features will allow asset issuers to communicate and interact with their asset holders (e.g. shareholders) in a much more efficient way.
Currently, a NASDAQ company needs to pay around $30 000 to a “quasi-monopoly” company to hold a vote. By doing that, a list of shareholders will be collected through different brokerages. The information provided to the NASDAQ company consists of names and addresses (not e-mail addresses). When they know who their shareholders are, and their respective addresses, they need to print the message out on paper and send it by snail mail.
Sometimes it’s hard to believe we are in 2018. The system is currently very fragmented, and we are dependent on “pen and paper”, and intermediaries, in this “digital” era.
An example of how a company can utilize Ravencoin’s protocol:
A company called “Company ABC” creates an asset called “SUPERIOR.TECHNOLOGY” and issue a total supply of 1 000 000 tokens. These tokens are divisible into smaller units, such as “1.00” (this number is arbitrarily chosen by the asset issuer), so the smallest tradable unit is therefore 0.01 SUPERIOR.TECHNOLOGY tokens. Company ABC sends out SUPERIOR.TECHNOLOGY tokens to their shareholders (might be through fundraising events or just as a replacement of their current shares). SUPERIOR.TECHNOLOGY tokens are now a representation of the company.
(if necessary, KYC/AML checks can be made outside protocol level by e.g. connect a KYC/AML profile to a specific token address)
If Company ABC wants to hold a voting event, they can easily send a message to their shareholders through the messaging function provided by Ravencoin.
We want to get your input on this specific topic…
You will receive a specific voting event token (sub asset) called “VOTE.SPECIFIC.TOPIC” at 3pm UTC, 23rd of february. Please vote by sending the sub asset VOTE.SPECIFIC.TOPIC to one of the following addresses:
Vote yes by sending VOTE.SPECIFIC.TOPIC token to this address:
Vote no by sending VOTE.SPECIFIC.TOPIC token to this address:
Deadline to send in your vote is 3pm UTC, 3rd of march 2023.
Thanks for your invaluable input, Company ABC”
By creating a sub asset called “VOTE.SPECIFIC.TOPIC” and send it out to each SUPERIOR.TECHNOLOGY token holder, company ABC can almost at no cost (except from creating the specific sub asset) involve their shareholders in voting events. Ravencoin brings a solution to the table which saves NASDAQ companies $30 000 + administrative costs around simple voting events.
As showed above, voting is just one of the functions that Ravencoin will provide. Other events worth informing shareholders about can easily be sent out without creating sub assets, including dividends.
Assets on blockchain – The current, fragmented system architecture, that intermediaries build profitable business models on is challenged. Enabled by superior technology, Ravencoin is providing a solution which questions current standards.
If assets on blockchains are adopted, Ravencoin is primed to be a game changing protocol. Instead of paying intermediaries for services that are no longer needed, they can allocate their hard earned $30 000 on productive investments (re-investing) or pay dividends/rewards to shareholders.
However, as with every other cryptocurrency, mainstream usage has to be reached before we can draw any major conclusions.