TokenizEU Chooses Ravencoin over Ethereum for Security Token Issuance
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TokenizEU Chooses Ravencoin over Ethereum for Security Token Issuance

TokenizEU, a European-based platform which aims to help companies issue EU-compliant security tokens, has committed to using Ravencoin as a part of their services. Despite Ethereum developing a strong reputation for security token standards, TokenizEU has provided six primary reasons as to why their preference lies in Ravencoin.


Details of TokenizEU Issuing Security Tokens on Ravencoin

TokenizEU is Comistar Global’s security token issuance platform. They aim to help companies structure Security Token Offerings (STOs) that comply with regulations throughout the European Union.

The TokenizEU platform will now issue security tokens on Ravencoin. The announcement comes as a surprise to some, since the majority of security token issuance occurs on the Ethereum blockchain. Ravencoin however, is a code fork of Bitcoin with a relatively short timeline.

Ravencoin’s asset layer— which allows for the creation and issuance of tokenized assets— just recently launched in November 2018.

Since then, the decentralized project has seen notable activity from Assure Services, who announced plans to launch tokenized funds on Ravencoin just 7 days after its asset layer activation.

Despite the quick development, Ethereum remains the current frontrunner when it comes to the tokenization of securities. More than seven ERC-20 compatible security token standards have been established so far. Ethereum has also seen the most implementation: luxury property, investment funds, equity, fine art ownership, and a REIT have all become tokenized on Ethereum.

Despite such development, TokenizEU has put their money on Ravencoin:

“…the TokenizEU platform will be issuing security tokens on Ravencoin. We know it may raise some eyebrows as Ravencoin is still relatively unknown for the public (not for the industry insiders though), and it’s a big leap of faith and a big bet, but we believe in the project…”

They went on to provide 6 reasons why they chose Ravencoin over any of the ERC-20 security token standards.

Why TokenizEU Chose Ravencoin over Ethereum

  1. Ravencoin was Built for Asset Creation

Ethereum was built for many different applications. The ERC-20 smart contract can be used in almost any industry, but it was not designed with a primary focus on asset transfer. Ravencoin, on the contrary, was designed precisely for the creation and transfer of assets. This means it was built to be user-friendly when it comes to such tasks, and is likely to remain easier to use in the long run.

  1. The Ravencoin Messaging System

Ravencoin has a built-in messaging system which allows issuers to send messages directly to token holders. The feature can be used to prove or disprove certain messages were sent. The Ethereum blockchain has no intrinsic message system.

  1. The Ravencoin Voting System

With Ravencoin, issuers can send ballots in the form of tokens to token holders for special votes. In this way, transparent voting results can be displayed to everyone without dispute.

  1. Ravencoin’s Dividend System

Issuers on Ravencoin can transfer dividends, profit shares, or reward payments to token holders in the form of its native token, RVN.

  1. The Unique Naming System on Ravencoin

Whenever an asset is created on Ravencoin, a unique name is created, and all other issuers are prevented from using the same name on the network. In addition, 500 RVN are burned as a cost of every asset creation, theoretically resulting in a decrease in total supply and increase of value for each RVN.

  1. Asset Metadata

Every issued token can include an Interplanetary Filesystem (IPFS) hash to include metadata about the real-world asset each token represents. Issuers can include a description of the asset, contact information, a digitally signed file linked to the token, or virtually anything they wish as metadata for each asset. In this way, metadata can be immutably conjoined to a tokenized asset, for the lifetime of the token.

What do you think of TokenizEU using Ravencoin? Are the reasons why they chose Ravencoin over any ERC-20 security token standard legitimate? We want to know what you think in the comments below.


Image courtesy of Ravencoin and TokenizEU.

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December 12, 2018

About Author

GaryStevens Gary Stevens is a full time developer based in Canada. He's an early bitcoin investor and loves everything open source. Gary believes in a decentralized future and has worked with a number of corporate clients helping them understand blockchain technology and innovation.