What is Raiden Network? | CryptoWallet.com

What is Raiden Network?

The Raiden Network is an off-chain infrastructure layer on the Ethereum blockchain. It is a scaling solution that works with all compatible ERC-20 tokens by enabling scalable, low fees, and ultra-fast transactions. The sole purpose of the Raiden Network is to complement the Ethereum blockchain in a manner that is consistent with Bitcoin’s proposed Lightning Network.

Raiden uses “balance proofs” to facilitate asset transfer between two parties directly without involving or congesting the main network. These balance proofs work using digital signatures and hash-locks.

Scaling Ethereum

Developed by Brainbot Labs Est. The idea behind the Raiden Network is quite simple, though the execution of its underlying protocol is quite complex.

Still, Raiden provides a platform for developers to interface with simple APIs to develop scalable and fully decentralized applications.

Some of the use cases that the Raiden network supports include API access, micropayments, and decentralized exchanges. To validate these transactions, Raiden uses digital signatures and hash locks. Also, to make contracts binding, balance proof on Raiden is overseen by the main block.