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Tron Black, one of Ravencoin's seven leading developers and coauthor of his white paper, has recently sat down for an interview of almost an hour to describe the decentralized project. Directly from his office just south of Salt Lake City, Utah, Tron discussed a little of Ravencoin's history, its functionality and some short-term developments.
As Tron Black became involved with Ravencoin
Bruce Fenton had the idea of Ravencoin, after an important career in the traditional finance sector. Bruce was also one of the first supporters of Bitcoin, who served as executive chairman of the Bitcoin Foundation from 2015-2016. His experience led him to discover the future of the blockchain's potential for the financial securities industry.
Bruce was friends with Patrick Byrne, CEO of Overstock.com, which is actually the way Tron was involved in the project. Tron works for Medici Ventures, a wholly owned subsidiary of Overstock.com. Now, Tron is one of the top seven developers, in addition to the large developer community, thanks to the open source nature of the project.
Cryptocurrency Regulations: Is Ravencoin a Security?
One of the biggest concerns in the wider community of cryptocurrencies is regulatory compliance. The recent activity of the SEC has targeted both ICOs and exchanges for violation of securities laws.
Due to both regulatory concern and the additional benefits of security tokens, which are further illustrated in our security token guide, some ICOs have even been deleted and replaced by security token (STO) offers.
Still, Tron Black is not worried about this regulatory buzz that affects Ravencoin. During the interview, he explained how a New York lawyer wrote a memorandum in which he explains why Ravencoin does not fall into the SEC classification of a title.
The reasoning is simple. Ravencoin had absolutely no fundraisers. Because of open source and the truly decentralized nature of the project (everything is available through GitHub), RVN purchases are not investments in a joint venture. Therefore, no investment agreement is envisaged, nor any profit expectation based on the performance of an entity other than the investor. Given these criteria, Ravencoin does not constitute a security according to Howey's Test, which is the instrument of the SEC in determining the titles.
The argument is strengthened while SEC president Jay Clayton said that Bitcoin is not a security. Ravencoin is a fork of the Bitcoin code and operates in a very similar way at a decentralized level.
However, it is essential to underline that the classification of Ravencoin as "not a security" applies only to the purchase of RVN in itself and for itself. As Tron explains,
"Ravencoin is not a security … It does not mean that someone can not create something that is a security as a resource on our platform, it does not mean that their resources with which they have created and promised something are not a security. I am quite worried that Ravencoin herself is in that parenthesis ".
The points made by Tron articulate the unique situation that is Ravencoin – a platform that, like explained by Bruce Fenton, has a primary design for the creation and issue of security tokens.
Most compliant security tokens currently work as token standards compatible with ERC-20 on Ethereum. Programmable smart contracts enable companies to ensure that regulatory compliance is applied algorithmically and transparently, ensuring peace of mind in the midst of regulatory crackdowns.
Tron commented on the user-friendly nature of Ravencoin compared to Ethereum:
"I do not know if we're trying to replace Ethereum or something, although I would say that for the purposes of an ERC-20 token, we're much easier to use, so I think it will go a long way."
While Ethereum is the current leader of security token standards, the programming language of smart contracts is typically limited to specialized developers. The beauty of smart contracts lies in the ability of developers to create their own token protocols and standards, which are required to comply with the rules they establish. While blockchain technology continues to expand beyond the areas of digital currencies as we see with Bitcoin, Ethereum has seen significant success.
With the imminent surge of the security token industry, which some believe to exceed the entire roof of the cryptocurrency market, we come to an integral question. Will Ethereum continue to lead the security token industry through its programmable smart contracts, or will another blockchain emerge as the forerunner of security tokens?
The user-friendly features of Ravencoin seem to suggest, as described by Tron, that Ravencoin has the potential to emerge as such a leader and could even become the Ethereum of security tokens.
The Ravencoin timeline: future developments explained
During the interview, Tron was asked if Ravencoin had any plans to move from his current consent mechanism to Proof of Work to a Proof of Stake system. Tron said he was not opposed to such a proposal, but he believes that the Proof of Stake models often lead to an unjust initial issue of tokens. Mining, he argues, provides a more balanced and dispersed distribution method, at least in the beginning. His comments certainly suggest that Ravencoin will remain with Proof of Work for quite some time.
Regarding a roadmap, Tron highlighted three features that will be added to the platform in the near future: messaging, dividends and voting.
Currently, users can add metadata with token issuance. This can be used to describe details regarding the digital version of real assets that are tokenised on the network. Already in the first quarter of 2019, users will also be able to include metadata in transactions to send messages to those who hold their own tokens.
Dividend distribution methods and hosting ratings are also under development. Dividends are clearly an important feature for security tokens, as they would allow companies to share profits with token holders transparently.
Voting is also an important aspect: many participation rights include voting privileges. To illustrate its usefulness, let's say that the owner of a company is considering franchising his business. The owner could create a vote on the Ravencoin network through various methods. One could include two portfolios addresses, one of which represents a "yes", the other representing a "no". Token holders could be provided with certain voting tokens (cards) to cast their vote and the whole community would be able to see the final result without any dispute.
With less than a year of activity, Ravencoin has enjoyed considerable success and has acquired a fairly large following of active users in its community. To those individuals, Tron transmitted the following message:
"To the Ravencoin community, thank you for your support, we are trying to create tools and things that you can build on top of this, so it's really what you need, please come and keep building!"
What do you think of Tron's points during the recent interview? Do you think Ravencoin has the potential to become the & # 39; Ethereum of security tokens & # 39;? We would like to know what you think in the comments below.
Image kindly granted by Medium.
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