Blockchain networks develop some solutions to solve scalability problems. Raiden Network was developed to increase the total transaction speed and capacity of the Ethereum blockchain network. Raiden Network is a scalability protocol developed to handle off-chain payments on the main network that are not processed on the blockchain network. In general, Ethereum has a main blockchain network. All transactions are performed on this network. Each transaction must be verified, processed, and approved by the Ethereum blockchain network. However, this whole process can be slowness and costly in some busy situations. This slowness and cost can increase, especially if scalability is lacking. Blockchain networks develop solutions to solve these problems such as Raiden Network. Raiden Network aims to make all off-chain transactions faster and cheaper by leveraging the secure structure of the Ethereum main blockchain network.
Raiden Network uses some payment channels to carry out these so-called off-chain transactions. These payment channels are created between two participants. Transactions within the payment channel are executed instantly and with minimal fees. Participants can use the channels without waiting for each transaction to be recorded on the Ethereum blockchain network. Users who open channels can also close or update them.
At the same time, the Raiden Network is capable of routing payments and transactions through a large number of other channels so that users can conduct transactions with other users who do not have direct access to a channel. It provides an alternative payment infrastructure for the Ethereum blockchain network.
Is Raiden Network Compatible with Smart Contracts?
Raiden Network has been developed to be compatible with the smart contracts of the Ethereum blockchain network. It allows decentralized applications (dApps) to integrate off-chain payment features. It prevents the Ethereum network from becoming congested and jammed with each user transaction. Thanks to the support of smart contracts, the speed of access to decentralized applications is improved.
What Are the Features of Raiden Network?
General features of Raiden Network on the Ethereum are as follows:
- Providing Scalability
- Channel-Based Payment Support
- Smart Contract Compatibility
- Network Channels
- Security
Providing Scalability
Raiden Network increases the scalability of Ethereum network. Off-chain transactions enable instant and low-cost transactions. It enables more transaction throughput and faster transaction times on the Ethereum network.
Channel-Based Payment Support
Raiden Network enables off-chain transactions using payment channels. Channels are created between two participants and fast and cost-effective transactions are carried out within these channels. The channel status can be updated without being recorded on the Ethereum blockchain, reducing the number and cost of transactions.
Smart Contract Compatibility
Raiden Network is designed to be compatible with smart contracts on Ethereum. This enables decentralized applications (dApps) to take advantage of off-chain payment capabilities by integrating Raiden Network.
Network Channels
Raiden Network allows routing payments between users who are not directly connected through network channels. It creates a wide payment network, enabling access to more users.
Security
Raiden Network is based on the security of the Ethereum main network. Although transactions take place off-chain, Raiden Network participants benefit from the underlying security mechanisms on the Ethereum blockchain.
Thanks to these features, Raiden Network can solve some of the scalability problems of the Ethereum blockchain network. In particular, the distribution of the load can be balanced by taking off-chain transactions to this area. Users can have a cheaper and more efficient experience in the Ethereum ecosystem.
As a result, Raiden Network technology increases the scalability of the Ethereum network, enabling fast, cheap, and scalable off-chain transactions. It also has the potential to improve the user experience and enable wider adoption of decentralized applications on the Ethereum platform. Ethereum co-founder Vitalik Buterin and other developers are also working on new efforts to improve scalability, which has been a key challenge for the Ethereum blockchain network.
Another scalability solution is a technology called Ethereum Plasma. Small blockchains are built on top of the Ethereum main network and are used to lighten the load of the network. An example of Ethereum Plasma for Bitcoin is the Bitcoin Lightning Network.
