An Intro to Ethereum's Raiden Network
Ethereum has reached a new milestone as developers release a testnet for their scaling proposal, Raiden. Unveiled on the official Raiden GitHub page, this news puts us one step closer in development for the code to be launched live on the Ethereum network.
This project is aimed at solving a big issue that exists within both blockchains: scalability. As the network begins to expand with more users making more transactions, it’s possible for the increase in traffic to slow down the network. Ethereum can currently only process around 15 transactions per second. With the implementation of Raiden, most transactions would be moved to payment channels creating a separate network for processing peer to peer transactions allowing for up to a million transactions to be handled per second. Instead of each transaction being recorded on the blockchain users will send private messages to sign the transfer of value. These payment channels would also allow for faster transaction completion times, secure transactions that aren’t visible on the global blockchain, and lower transactions fees. Raiden offers a simple API that is compatible with decentralized applications and facilitates transactions of any token on the Ethereum blockchain. If Raiden is succesful, it will handle over 20x more transactions per second than the biggest credit card companies like Visa and Mastercard.
Further developments to the Raiden network can be followed on the official GitHub page