Raiden Network (RDN)
The Raiden network is a payment channel network for Ethereum. The network has a simple basic idea: it uses a network of Peer-to-peer payment channels and Ethereum deposits to preserve guarantees. These guarantees are expected from a blockchain in the system. The network also uses off-chain state networks to extend asset transfer capabilities. The basic idea of the network is to switch from a model that experiences blockchain bottleneck to a model where users can exchanges message privately. Raiden helps Ethereum to become a preferred blockchain from microtransactions.
Features of the Raiden network
Raiden empathizes the following features in their network. They include:
- Fast: users can transfer any amount the transfers and the confirmation takes a fraction of a second.
- Scalable: Raiden scales linearly with participants. It’s possible for the Network to facilitate 1 million or more transfers per second.
- Low fees: transaction fees on the Network can be 7 orders of magnitude lower than on any other blockchain.
- Confidential: single transfers won’t appear on any globally shared ledger.
- Micro-Payments: the low transaction fees allows users to efficiently transfer any amount of values including the tiniest ones.
- Interoperable: the Raiden network works with any token that follows the Ethereum standardized token which is the ERC20 token.
These features make Raiden the ideal solution to central issues of the blockchain technology. These issues are issues like cryptographically-secured payment transfers, and other blockchains made a far smaller purchase like Bitcoin and Ethereum.
How does Raiden Work?
Raiden has Raiden nodes that run alongside an Ethereum node to facilitate transfers. The Nodes uses the help of the Ethereum blockchain to manage deposits. The platform also has a simple API that makes it eases to use. The Ethereum deposits on the platform help in preserving the guarantees expect from the systems blockchain.
Raiden use cases
There are a variety of application and purposes of Raiden. Some of them include:
Micropayments for Content Distribution: Raiden can be used to for online games and journalism. It is an alternative to subscriptions, advertising, and paywalls.
Decentralized M2M markets and API access: the M2M economy on the platform revolves around API access. Raiden can be used to get grained access to APIs, computing power, storage, bandwidth and basically any infrastructure.
P2P cash: Raiden can help preserve the private and decentralized nature, if cash and help its users to experience new expectation of a new generation.
Retail payments: Raiden Network is a crucial building block, as an adoption that relies on competitive fees and scalable technologies.