We have another piece of our series “Know Your Cryptocurrency” and this time it’s again a hot news! The name of this cryptocurrency is Raiden Network Token (RDN).
What is Raiden Network?
Raiden Network offers great expansion possibilities that allow immediate and low payments. It is a compliment for Blockchain encrypted by Ethereum and works with any ERC20 compatible token. The aim of this project is to research state-owned technology, define protocols, and develop reference implementations. Interestingly, the founder of this project, Heiko Hees, is the main developer of Ethereum’s core since March 2014.
- Expansion options – scalability is linear with the number of participants.
- Speed – Transfers can be confirmed within one second.
- Privacy – Individual transactions do not appear in the public list of transactions.
- Interoperability – Works with any token that links to the standard Ethereum API token.
- Low fees – transfer fees are considerably lower than at Blockchain.
- Microtransactions – low transaction fees allow efficient transfer of small values.
Raiden Network is an infrastructure layer located above Ethereum’s Blockchain. While the basic idea is simple, the basic protocol is rather complex and the implementation is not trivial. However, technical aspects can be removed, so developers can communicate with a relatively simple API to create scalable decentralized Raiden Network-based applications.
Raiden Network 101
Each participant needs to know about all the updates in the public book. Hardware and bandwidth limitations set the limit of updates per second that can be shared in a decentralized network. The basic idea of the Raiden Network is to avoid a narrowing of the Blockchain terminal. This is done through the use of a pay-channel network that allows safe transfer of value outside the chain.
An example of use for Raiden Network is payment. Currently, the global payment industry generates roughly $ 2 trillion in revenue every year, and this figure is steadily increasing.
- Retail payments – There are relatively few highly profiled projects based on the Ethereum platform that seeks to make Blockchain used for payments to the masses of people. Especially in developing countries, this effort can potentially improve the lives of millions of people. The Raiden Network may be a crucial milestone as significant acceptance relies on scalable technologies and competitive fees.
- P2P Cash – Cash as we know it slowly disappears from the surface of the earth because everyone prefers electronic payment. Scalable payments based on Blockchain can help maintain the private and decentralized nature of cash while updating their user experience with the expectations of the new generation.
- Microtransaction – Blockchain is a hot candidate to become the payment infrastructure of the upcoming economy. The Internet of Things (IoT) can rapidly increase the number of business transactions (the less expensive the transaction costs, the more cases of exploitation occur). Microtransactions can be used to pay for API, bandwidth, computing, storage, electricity, and virtually any infrastructure. The same applies to content or entertainment, such as websites, gaming, video or audio streaming.
Market capitalization: $ 258,773,000
Volume (24h): $ 20,763,000
Tokens in circulation: 50,000,000
Total Tokens: 100,000,000
Price when writing this article: $ 5.18
Stocks: EtherDelta, Binance, Kucoin, Huobi
Main Page: https://raiden.network/
From the user’s point of view, the RDN token model is designed to allow for competition and upgrade of ancillary services on an open platform. This will allow better service and lower fees over time. Users sign up for a platform to help create a monopoly based on networking effects. Ancillary service providers have money to monetize on the platform by taking a token based on the RDN token to strengthen the value of the token. In line with their request, it is also that the system is well managed and has resources that need to be further developed and maintained in the long run. Raiden application developers have no incentive to expand their own competing network because there are no unnecessary charges that their users would have to pay. We hope this project will have a bright future. Of course, there are more positives than negatives, and people now believe that up to half a year, the value of this token can grow six times. Before investing, however, do your own research. Have a nice day!