Raiden Network Token

The Ethereum ‘Lightning Network’

_{Created by Brainbot}

Project Overview

What is Raiden Network Token?

The Raiden Network is considered to be what lighting network is being developed now for bitcoin, which is an ‘off-chain’ transaction system that records the differences on the blockchain to perform multiple transactions without clogging up the ethereum blockchain in order to do so… like we’ve already seen Crypto Kitties do when it almost shut down our beloved blockchain. A simple way to look at The Raiden Network is it being the facilitator of a global network of micro-transactions that’s infinitely scalable.

Today, the Ethereum blockchain cannot currently allow (and arguably won’t be able to allow) the system of micro-transactions The Raiden Network is aiming to do, even after the Ethereum team fully implements the Casper update and switch over to POS.

The Solution The Raiden Network Presents

As of now, the blockchain technology of today cannot sustain a global network of micro-transactions that would compete with the likes of Visa. In order for digital peer to peer payment systems, like bitcoin, to go fully mainstream is to be able to scale to visa-like level transactions per second on a global scale.

Let's imagine a scenario where a decentralized application existed that created a system where you could share your wifi with cars that are passing by and be paid through a micro-transaction as incentive to share your wifi with a 'stranger'. In today’s Ethereum blockchain you can’t do that due to the number of tiny 'mico-transactions' that would require, which again the Crypto Kitties analogy comes to mind because this company sometimes alone is still absorbing almost 10-20% of the total blockchain capacity. The micro-transaction application like the shared wifi system mentioned, much less in a global network of micro-transactions, could simply not exist on the Ethereum blockchain.

At the moment, this is the biggest barrier to a decentralized exchange as well because a centralized exchange can record all the ‘off-chain’ transactions without you receiving the tokens until you actually ‘cash-out’ and record the transaction on the chain to wherever you are sending it once you again 'cash out'. In order for a decentralized exchange to truly operate, it would require trustless payment channels to be created, which The Raiden Network is aiming to provide.

The Raiden Network brings a improved solution in processing micro-transactions by opening up payment channels through digitally signed hash-locked transfers known as ‘balance proofs’. Raiden enables a lot of secure transactions, or 'micro-transactions', that don’t clog up the chain because the POW blockchain only allows for a fixed amount of transactions to be performed at a time and there is only one set of transactions better known as, when a new block on the block is created’. So if you do simple math

Upcoming Challenges for The Raiden Network

Branding – Personally, I like the name but I am also concerned their name choice may not be as classic as ‘Ethereum’ ‘Cardano’ ‘Ripple’ or some of the other popular crypto companies currently rising. The Raiden Network’s twitter account profile picture is the same Raiden from Mortal Combat, hard to think it would be in the 1 billion dollar market cap range like it’s application suggest it should.

User-base – Current companies who would have a use case for The Raiden Network are scarce or currently being developed. Their target industry is micro-transaction based companies and majority of these type of companies don’t have a working product to understand why the Raiden Network will be so vital to their ability to process the millions of transactions they’ll require, which if current blockchain technology scales even tenfold it could not be able to do.

Developer Overview

Team Activity

Github Activity: The team appears to be extremely active on Github, in fact one of the most active development teams I’ve seen to date. Almost 10 times more active than the Stratis development team is as of now actually. For example, the Raiden Network has over 2,700 commits and most top 100 coins have half that which tells you there is a lot of activity going on with the team.

Roadmap: The Raiden Network team does not provide a clear road map which bizarrely enough, is one of the things reasons to admire the team. While everyone surely appreciates crypto companies that do publish and issue clear roadmaps with a track record of meeting their targets, start thinking are they ‘really’ meeting their goals or are they rushing and issuing ‘buggy’ code since they’ve set a deadline. If you think about all this technology being new, how does anyone know how long it’s going to take to make a newly created technology work? These are some of the reasons that having a clear roadmap should not scare anyone from investing. What makes this a smart buy is you never know when they’re going to release tech (which I like to refer to as a ‘haymaker’ and is when the coin goes 10 fold its value overnight).

Meet The Leader

Heiko Kees - CEO

Heiko a german born graduate of Johannes Gutenberg University Mainz was previously a core developer of Ethereum, the founder of PediaPress and also found of Die Firma GmbH. With a track record of success, one would imagine The Raiden Network, RaidEX and Trustlines success may also be on the horizon with such an experienced veteran as the leader of these projects.

Anticipated Releases

Raidos: AKA Raiden 2.0 is a proposed sidechain technology to generalize state channels. While the Raiden Network is limited to ERC20 token transfers, Raidos aims to scale Ethereum’s generalized computation capabilities through a network of satellite chains, which can host any smart contract. This technology is similar and complementary to Ethereum's sharding.

RaidEX: RaidEX is a Proof-of-Concept of a decentralized exchange built on top the Raiden Network based on its atomic token swap feature.

Trustlines: At some point, Trustlines could be built on top of the Raiden Network.

Basic Features

Low Fees
Private
Micropayments
Interoperable between all ERC20 based token

Market Review

_{Full Disclosure: I do not consider myself a professional trader whatsoever. Any advice given is my opinion only and recommend you invest responsibly. I do not take fault, nor take credit, for any profits/losses you may receive from any advice, price forecasts, etc. this review may offer.}

Industry Market Capitalization Analysis: Comparing The Raiden Network will be like comparing it to Visa for banks, and the entire banking industry's market capitalization is around 7 trillion, Visa is 250 billion or roughly 4 percent of the entire mkt. cap. of the banks. The Raiden Network has a potential target market capitalization, which would consist of all ERC20 tokens, so lets call that 250 billion (but that number is growing everyday), so at 4% that would put the potential market capitalization at 8 billion today.

Competitors

Truebit

Is a system proposed by Jason Teutsch and Christian Reitwießner in early 2017, that will offer a different type of 'off-chain' solution (similar to state channels). CLICK HERE for a link to Truebit's whitepaper.

Sharding

“… you can think of it as, in a fairly simple version, creating a blockchain where you have, lets say, a hundred different universes and each of these universes is a different account space” Vitalik Buterin

Sharding would be an upgrade to the Ethereum protocol which is being proposed to scale it to enable an overall increase in transaction capacity and said to scale Ethereum's transaction up to twelvefold but this solution would still have the latency issues at a global scale.

Plasma

Plasma is an idea to scale transaction capacity using hierarchical trees of side chains offered by both Joseph Poon and Vitalik Buterin in middle 2017. The basic proposal is that there could be a series of smart contracts that run on top of the Ethereum blockchain, that basically add what are better known as 'side-chains'. Implementation of Plasma could take months if not years to develope and fully test before going live on the blockchain; however, the upgrade is noted to increase transactions to 100,000 transactions per second. Both Sharding and Plasma do not offer the latency issues Raiden does and Raiden is built complementary to these upgrades.

***For more information on Plasma & Sharding's relationship to Ethereum CLICK HERE

Raiden Network Price Prediction

Price Per Token = (Market Capitalization X Market Share) ➗ Total Supply

Raiden Network Token Total Coin Supply: 100,000
Total Target Market Capitalization: $8,500,000,000
Total Competitors: Truebit & Ethereum Upgrades Only
Total Expected Market Share: <70%

$62 = ($8,500,000,000 X 70%) ➗ 100,000,000

Current Token Price: $4.50
Price Target: $62
Potential Increase: 1300%
Potential Market Capitalization: 6.2 billion USD

Please Re-Steem if you found this article was useful

Citations:

Company:
Raiden Network Token Website: https://raiden.network/faq.html
RDN Development Company Brainbot Website: http://www.brainbot.com/


Other Research Articles:
https://coinjournal.net/plasma-can-save-ethereum-cryptokitty-level-congestion/
https://blog.cyber.fund/raiden-network-ico-report-974d663e8e11
https://github.com/ethereum/wiki/wiki/Sharding-FAQ
https://github.com/raiden-network/raiden