Raiden Network Aims To Solve Scalability Issues with Cryptocurrency Transactions

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If the Bitcoin Civil War has proven anything, it is that scalability is a major problem for users who want Bitcoin to fulfill its promise to make transactions both cheap and fast.

Bitcoin is not really ready to compete with credit cards because there is a terrible backlog of transactions and fees are getting too high to really do a good job of competing with Western Union.

The Raiden network aims to circumvent the need to create scale-up options by creating new off-line solutions that effectively add layers to the blockchain network and displace the responsibility for setting it off. scale of the blockchain layer. The value of the Raiden network token has recently increased by more than 31%.

Buying a cup of coffee

One of the big "tests" of whether a cryptocurrency has a chance of being embedded in daily transactions is whether someone can pay for his latte in his favorite coffee shop. without having to pay ten times more than the latte. Because this is no longer the case for Bitcoin, people are starting to seriously look at alternatives like DASH.

By removing the problem of scalability of the blockchain layer, users who want to make small transactions no longer need to argue for space in blocks. The blockchain does not need to connect until a transaction has occurred. The Raiden network layer – call it a "transaction layer" for a blockchain network if you want – handles the actual processing of that transaction.

A big deal, right?

It is easy to say that the size of the blocks in the Bitcoin blockchain should simply be increased but, as we have seen with the failure of Segwit2X, it is much more difficult to accept Cryptocurrency developers and minors accept increased.

Raiden's goal is to process transactions outside the blockchain layer to improve scalability and return to the days of low fees and fast transactions. This means that you can pay for your coffee quickly without having to worry about paying by the nose in fees.

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Why does it have to be multi-layered, though?

The Raiden team might have been inspired by the standard OSI network model, in which the application layer is supposed to present the data significantly, but is not responsible for packaging and the use of the data. sending this data over the network.

Blockchain can be called the application layer responsible for storing and presenting data. Raiden's overlay is designed to manage DApps that encourage cooperation through micropayments, allow for instant token trading and make retail payments more feasible in situations where the consumer does not buy expensive jewelery or a new car.

If this sounds like a bit of reshuffling of resources, then it's probably to make the process of adding data to the more organized blockchain.

The OSI network model is primarily intended to facilitate the categorization of protocols that allow the network to function and point out the steps that a computer takes to prepare the data for transport over the network, which facilitates the troubleshooting.

What an application like Raiden does is make blockchain its main function of storing transaction data while moving the work of processing that data away from the blockchain. This means fewer arguments about block size and more discussion about how to make data processing more efficient while preserving data security.

Sale of tokens recently completed

Raiden Network closed its symbolic sale on November 8 and it is quite promising that the value of the token continues to increase. Cryptocurrency users may recognize the value of moving scalability out of the blockchain layer and to a layer that is solely responsible for processing transaction data. In this way, blockchain-based systems do not have to support data processing and data storage on the same layer when these two functions can be placed in their own containers using separate protocols.

The road map of Raiden looks alluring and, as he wrote his blog on the way nobody wants to wait more than a second for that one transaction is confirmed. This is one of the biggest complaints with Bitcoin right now.

Many people who actually want to do business using cryptocurrencies and blockchain are jumping to other cryptocurrencies with lower fees and faster transaction times because Bitcoin is not ready to compete with them. credit card.

The Raiden network aims to eliminate the problem of the scalability of the blockchain layer by adding a transaction layer responsible for the actual processing of transactions.

Thank you for reading!

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