Skip to main content

What is the Raiden Network?

What is the Raiden Network?

The Raiden Network is an off-chain scaling solution, enabling near-instant, low-fee and scalable payments. It’s complementary to the Ethereum blockchain and works with any ERC20 compatible token. The Raiden project is work in progress. Its goal is to research state channel technology, define protocols and develop reference implementations.


The Raiden Network is an infrastructure layer on top of the Ethereum blockchain. While the basic idea is simple, the underlying protocol is quite complex and the implementation non-trivial. Nonetheless the technicalities can be abstracted away, such that developers can interface with a rather simple API to build scalable decentralized applications based on the Raiden Network.

Use cases


There are quite a few high profile Ethereum token based projects competing to bring blockchain based payments to the masses. Especially in developing countries these efforts may potentially improve the life of millions. The Raiden Network can be a crucial building block, as significant adoption relies on scalable technology and competitive fees.


Cash as we know it is on the retreat as there is a trend towards cashless societies. Scalable blockchain based payments can help to preserve the private and decentralized nature of cash while updating its user experience to the expectations of a new generation.


Blockchains are a hot candidate to become the payment infrastructure of the upcoming machine-to-machine economy. IoT may increase the number of commercial transactions by an order of magnitude and the cheaper the cost of transfers become, the more use cases emerge. Micropayments can be used to get fine grained access to APIs, bandwidth, computing power, storage, electricity, basically any infrastructure. The same goes for content or entertainment such as webpages, gaming, video or audio streaming. Already today many proposed DApps rely on tiny payments between participants in the network to incentivise cooperative behaviour.


Next to payments, the exchange of tokens is probably the second most prominent use case of blockchains. This is even more so the case, if the current trend of tokenization continues. Decentralized exchanges built on Raiden Network’s atomic token swaps feature allow to instantly exchange tokens at low cost.


Popular posts from this blog

What is CeFi? What is Defi? What is difference?

​​​​​​  Definition CeFi, short for centralized finance, offers some of the yield benefits of DeFi with some of the ease of use and security of traditional financial-services products. With CeFi, you can earn interest on savings, borrow money, spend with a crypto debit card, and more. With DeFi, users trust that the technology will perform as proposed to execute on services being offered. On the other hand, with CeFi, users trust a business's people to manage funds and execute the business's services. A DeFi coin is much like a digital version of a fiat coin — it transfers value in the course of a financial transaction. DeFi coins are built on and often named for their unique, native blockchain networks. In spring 2021, Maker, Compound, Uniswap, Aave, Chainlink, and Ankr are among the most popular DeFi coins. DeFi vs CeFi: CeFi Ecosystem relies on a centralized exchange to manage financial services while DeFi is an open and transparent network. CeFi, short for centralized financ

What is Alliance chain?

 Alliance chain Blockchain is a distributed ledger where each node is responsible for storing data. Depending on the difference in access control, the blockchain can be divided into a public string, a private string, and an alliance string. Public chain The public chain is fully open to the public and allows anyone, regardless of time and place, to engage in transactions and store data in a chain that only requires a device connected to the Internet. For example, BTC blockchain and ETH blockchain are both public chains. Because each node is blockchain independent, user privacy can be greatly protected. In addition, any node with the same rights can try to record and update data through a consensus mechanism. All public chain data is transparent so that everyone can check the history. The public chain is highly decentralized because it runs according to established rules, which does not allow developers or other users to make changes to rules and data. However, the trading speed is much

Coin Hoarding means

Behavior where an investor starts to purchase and hoard a large sum of some currency.