Raiden Network (RN) is an open source project, which takes advantage of off-chain payment networks
for all types of ERC-20 Tokens, using a low-cost messaging system called Matrix, totally adaptive to the Ethereum blockchain
Matrix is a scalable infrastructure, which serves to create secure and decentralized communications in real time, a P2P system, which allows transfers, sending, receiving tokens (from a few dollars to fractions of a cent), which are confirmed as fast as sending (and receiving) an Internet chat message.
All transfers require that some tokens, are blocked in a smart contract, for as long as the payment channel is working and in any case until the transaction is completed.
To be viable, blockchain-based payment systems today need to be fast and inexpensive, but these are properties that current blockchain systems are not particularly good at.
Although there are many approaches to the problem, most of them are solutions capable of increasing the number of transactions, but only networks like Raiden seem to provide a global infrastructure for fast and inexpensive decentralized payments, both for machines and people.
Infinitely scalable, RN adapts linearly to the number of users on the network and although off-chain transfers do not require any fees, intermediaries within the network will always be able to charge small fees to provide their channels, encouraging users to create and sustain a healthy network, simply by participating in the mediation of transfers.
The on chain control is regulated by Raiden services, which serve to validate transactions on Matrix, blocking fraudulent transactions and improving the conditions of Pathfinding of payment paths, for all nodes of the network.
The confirmation of transfers on the main network, will depend not only on the blocking time, but also on the time taken by the miners to choose the transactions they will have to confirm.
SIMILITIES WITH Light network
Structurally similar to the more famous bitcoin Light network, RN is a candidate to become a complementary tool for micropayments, but on the Ethereum network, an alternative and probably more interesting channel on which to circulate different cryptographic values.
Thanks to particular solutions based on Bitcoin, it will become interesting to move btc directly on the Ethereum blockchain, building a bridge that allows Bitcoin to fully interact with DeFi and its tools.
Resources like tBTC and pBTC for example, represent a credible attempt that together with Raiden would allow all bitcoin owners to interact in the Ethereum DeFi, opening to very interesting scenarios.
Everything seems to lean towards a solution capable of handling large volumes and transactions, creating in fact a new paradigm that will expand the horizon of Ethereum and its entire economic system.
The Token Raiden Network (RDN), supports many use cases such as micropayments, M2M markets, API access and decentralized exchanges and will play a leading role in the functionality and economy of the project.
Many #DeFi & $ETH scaling protocols have received plenty of attention in the past year. One that hasn’t received any attention, yet consistently is in the Top 10 by developer activity is @raiden_network. Last week they released main net. This is ETH’s lightning network… 🤓 $RDN pic.twitter.com/dsxOXpo6gj
— Alex Saunders 🇦🇺👨🔬 (@AlexSaundersAU) June 9, 2020
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