The Raiden Network Token (RDN) aims to become an off-chain scaling solution with efforts to make it instant, low fees and scalable payments for Ethereum. Ethereum blockchain cannot currently allow the system of micro-transactions The Raiden Network is aiming to do so, even after the Ethereum team fully implements the Casper update and switch over to POS. An easy way to look at The Raiden Network is it being a global network of micro-transactions that’s infinitely scalable. The white paper can be viewed at https://raiden.network/101.html.
This may be a little hard to understand looking at their site how this is going to work so I’m going to explain it in the simplest way possible. The blockchain technology available today is unable to have a global network of micro-transactions that would compete with the likes of Mastercard. In order for a digital peer to peer payment systems, like bitcoin, to go fully mainstream is to be able to scale to Mastercard level of transactions per second on a global scale.
For example if you are walking with your mobile device using a decentralized application and people are able to connect to your WiFi while you walk past them, it would not be possible due to the many micro transactions that Ethereum cannot handle due to the tiny amounts of transactions due to high fees in the Ethereum blockchain and long transaction times. This is where Raiden Network comes in to bring a solution for processing microtransactions by opening up payment channels through digitally signed hash-locked transfers known as ‘balance proofs’ which will be secure.
Raiden Network works with any ERC20 token which includes some big names such as EOS, VEN, ICX and BNB and many more the full list can be viewed here in order of market cap https://eidoo.io/erc20-tokens-list/.
Overall if this can be pulled off it will be bigger than Binance getting “Hacked” we could see the market have big spikes which means a ton of money if you hold any of the ERC20 tokens it is working with. Personally, this is a longshot Ethereum itself has sort of given this project the cold shoulder as they plan to roll out the Casper update and switch over to POS, but if they can make some sort of connection in future this will be big or even if they worked with EOS it would mean big things.
