The Raiden Network is an off-chain scaling solution, enabling near-instant, low-fee and scalable payments. It’s complementary to the Ethereum blockchain and works with any ERC20 compatible token. The Raiden project is work in progress. Its goal is to research state channel technology, define protocols and develop reference implementations.
Scales linearly with the number of participants
Transfers can be confirmed within a subsecond
Individual transfers don’t show up in the global shared ledger
Works with any token that follows Ethereum’s standardized token API (ERC20)
Transfer fees can be orders of magnitude lower than on the blockchain
Low transaction fees allow to efficiently transfer tiny values
The obvious use case for the Raiden Network is payments. Currently, the global payments industry generates roughly $2 trillion in revenue annually - and it’s growing.