$ 1.108 -5.57%

Raiden Network (RDNN) Rank 480

Market Cap $110.79 M
Volume 24H 2186068 RDNN
Open 24H $1.173
Low/High $1.060 - $1.315
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Mkt.Cap $ 110.79 M Volume 24H 2.19 M RDNN
Market share 0% Total Supply 100 M RDNN
Proof type N/A Open $ 1.17
Low $ 1.06 High $ 1.32
Date Price Volume

Analysis of Raiden Network – Scalable Transfers for Ethereum


Raiden Network transfer fees will be several orders of magnitude lower than on-chain transaction fees. Instead of paying for global consensus, you only pay for forwarding peer-to-peer consensus.

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.

Raiden Network description

It uses off-chain transactions in order to overcome the problem of scalability to provide low-fee and almost instant transactions. Since it is a highly anticipated project, the Raiden Network will probably have large usage right off the bat. If you’re curious to learn more about the Raiden Network, please feel free to try the software yourself or check out our documentation. For any technical question, shoot us a message in our Gitter chat. Summarizing the example, the settlement process of pending locks ensures that pre-allocated funds, which had been secured by locks, get unlocked either to the receiver or to the sender of the payment.

Raiden Network description

If your payer had instead made a single wire transfer per payment, he would have paid a lot more in fees and both of you would have waited a lot longer for a confirmation. As a side-effect, the bank is happy too because this system significantly reduces internal workload. Raiden transfers require some of your tokens to be locked up in a smart contract for the lifetime of the payment channel. Similarly to only withdrawing small amounts of money from an ATM, you would not want to lock up too much value in a payment channel. Once you withdraw money from an ATM, you cannot use it for anything else, like online payments or wire transfers.

It is intended for many-to-one payment setups, like users interacting with a Dapp. However, it is not suitable for many-to-many payment setups as it requires users to lock up tokens upfront for every potential payee. This limitation comes with reduced technological complexity, allowing µRaiden to be used on the mainnet today. The Raiden Network is an off-chain transfer network for Ethereum ERC20 tokens.

Raiden Network description

Low fees allow for a long tail of new use cases which have not been practical before due to high transaction costs. Especially IoT and the Machine-to-Machine economy depend on being able to transfer tiny values. Raiden aims to be the predominant payment layer for these applications. The Raiden Network will provide a payment system based on payment channel technology that scales with the number of its users. This means that the bigger the Raiden Network becomes, the higher its maximum throughput will be, with practically no upper limit in sight.

A cryptographic hash lock prevents all of these intermediate transfers to be credited until David confirms to Alice that he received the payment. Once Alice decides to unlock the payments, she gives the key to the lock to David. If David now wants to claim the payment without closing the channel, he has to pass the key on to the last mediating peer in the route who in turn needs to pass it on to claim their own payment. In addition, payment channel transfers, in contrast to on-chain transactions, do not require any fees. The Raiden protocol aims to facilitate this market by using both protocol-level features and optional auxiliary services.

About The Project

The direction is determined by whether or not the secret is known. If the secret is revealed off-chain then no on-chain interaction is required. If the counterparty is unresponsive, the blockchain can always be used to guarantee safe transfers. The token network smart contract now needs to pay out the pending transfers to the rightful owners. In order to successfully conduct a mediated transfer, a path of payment channels with sufficient capacity between sender and receiver is needed.

Raiden Network description

The basic idea of the Raiden Network is to avoid the blockchain consensus bottleneck. This is done by leveraging a network of payment channels which allow to securely transfer value off-chain, i.e without involving the blockchain for every transfer. Its target audience is blockchain and dApp developers looking into interacting with and performing transfers through the Raiden Network from their apps.

Let us say Alice wants to send tokens to David, as illustrated in figure 4. She first has to find a route through the network that connects her to David. Then, each participant along that path has to cooperate in order to funnel the payment through the route from Alice to David. Participants lend their own channels to Alice by forwarding the payment to the next hop in the path.

Raiden Network description

With cryptocurrencies like ethereum, it can take an average of seconds for your transaction to be registered in the digital recording known as the blockchain. EthArmbian - turns NanoPC-T4 or RockPro64 into a full Ethereum node. Includes components of the Ethereum ecosystem such as Raiden Network(version check), Trinity, Status.im, IPFS, Swarm and Vipnode. This is a standalone Typescript library which contains all the low level machinery to interact with the Ethereum blockchain and the Raiden Network. The Raiden dApp is a reference implementation of the Raiden Light Client SDK, which can be used with web3 wallets like Metamask (Desktop) or imToken (mobile).

To that effect, participants in the Raiden network are expected to demand fees to be compensated for lending their channels to the network. These fees may also be used to incentivize rebalancing of unbalanced payment channels, enabling long-lived payment channels. The Raiden Network is an off-chain scaling solution for performing ERC20-compliant token transfers on the Ethereum blockchain. It is Ethereum's version of Bitcoin's Lightning Network, enabling near-instant, low-fee, scalable, and privacy-preserving payments.

  • Therefore, the more usage the Raiden network has, the more valuable RDN tokens should be.
  • This is even more so the case, if the current trend of tokenization continues.
  • Then, each participant along that path has to cooperate in order to funnel the payment through the route from Alice to David.
  • Therefore, transaction frequency is only limited by the hardware of sender and receiver.
  • Since our last update six months ago we made over 2000 commits, resolved (and created) a ton of issues, merged a bunch of PRs and finally have a release that’s worth sharing with the developer community.
Raiden Network description

Already today many proposed DApps rely on tiny payments between participants in the network to incentivise cooperative behaviour. 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. secret registration only happens if there is an uncooperative node, this is avoided at all costs since our goal is to reduce the number of transactions. IOW, Raiden will prefer off-chain transfers, and use the blockchain only as a fallback for some edge cases.

Implementations of Plasma will be complementary to the Raiden Network. Without further systems in place, channels will become imbalanced over time. However, channels can be automatically rebalanced through proper incentivization. Nodes can adjust their forwarding fees in such a way that their channels remain balanced. Our simulations show that this alone helps to prolong channel longevity by a great deal.

. Lifecycle of a Raiden channel

Raiden Network description

During this time we have learned that payment channel network technology is even harder than anticipated, involving a complexity that goes beyond most common software development challenges. Instant token swapAfter payments, blockchains are most preferably used for transfer of different tokens. With Raiden Network, the tokens can be transferred almost instantly at minimal transaction fees. The Raiden team expects that over 95% of all nodes on the network will be light-clients who are happy to pay tiny fees for the convenience of not having to run the full stack of services. It is expected that most dApps will use a light client, so Raiden transactions via those dApps will incur a fee that is payable in RDN tokens.

If the Raiden Network becomes very large, potentially the vast majority of the Ethereum transactions can be shifted off-chain, making Raiden Network very valuable. As most users will not run a full node, they will need to pay RDN to participate in the Raiden network. Therefore, the more usage the Raiden network has, the more valuable RDN tokens should be.

Raiden Network description

Then, transfers can be performed by sending signed messages directly between two parties without any involvement of the blockchain itself. Therefore, transaction frequency is only limited by the hardware of sender and receiver.

Raiden Network description

With a user-friendly interface, and more than cryptocurrency pairs, trading is economical and simplified on CoinSwitch. The transactions are passed via multiple nodes instead of just one, which allows for quicker confirmations and transfers. Off-chain payment channels are used, which allow users to transact after they have deposited a down-payment first made on-chain.

. Can the Raiden Network be used with other blockchains?

Raiden Network description

Since each channel has two participants, it always maintains two of those and together they are essentially the channel's bar tab if you will. Multiple credits are exchanged back and forth, changing the total amount owed between the participants, possibly even rebalancing the channel many times in the process. To learn more, read the Raiden Network 101, take a look at the current specification or check out the code. PFS is not operating on the same Token Network Registry (0x62436bbadB C2A367FfdFEb2f3) as your node is (0x754b1Fa6bcb43F09557Eb5A212513F40A263DAF8).

At some point, Trustlines could be built on top of the Raiden Network. Additionally, as long as you have enough tokens deposited in your channel, you can forward multiple transfers at the same time. Each node can forward many transfers per second, depending on their deposits. While it is true that for the duration of a Raiden transfer, intermediate tokens are locked up and cannot be used elsewhere, this has no noticeable effect on network liquidity. The time it takes for a transfer to be completed is on the order of tenths of a second with configurable timeouts to account for failing nodes.

Raiden Network description

Raiden Network Blog

Luckily, this downside can be mitigated, since in a payment channel network, users do not need to open channels with everyone they want to pay. Blockchains supporting the Ethereum Virtual Machine will be able to use the Raiden Network after manual modification to work with their API. While this is not a focus of current development, it is reasonable to expect the Raiden Network to work with Polkadot, Dfinitiy, Cosmo, Hyperledger Burrow, EOS and others.