MicroRaiden: the micropayment channel deployed on the Blockchain Ethereum

The Raiden network has been developed as a solution to the scalability problems of the Ethereum network. It is a system analogous to Bitcoin's Lighting Network. It allows instant transactions between users. A minimalist version of the MicroRaiden has just been deployed on Blockchain Ethereum.

Ethereum and scalability issues

The Raiden network can be considered as an additional asset of the Blockchain Ethereum. This network, existing independently of the original blockchain, allows the micro-transactions of ETH or any ERC-20 token at significantly reduced costs.

One of the main problems with the Ethereum network is its inability to quickly manage many transactions. Indeed, each transaction must be verified by each node of the network. Thus, the more the network grows, and the more transactions are multiplied, the longer the time required to validate transactions.

MicroRaiden arrives

With MicroRaiden, transactions will be accelerated through a streamlined process similar to Bitcoin's Lightening Network.

The funds to be sent are first blocked, and then an intermediary transaction channel between the two parties is opened. Each transaction on the Ethereum network is associated with a digital signature. Once the transaction is complete, the Ethereum network nodes will have only one signature to verify in order to distribute the funds. Users will be able to open and close micropayment channels on the Ethereum network.

MicroRaiden will offer very promising features, such as reading RFID to track shipments as part of supply chain management, or downloading information from the internet.

This is a new big step for the Ethereum network. Scalability has always been a problem, and the comprehensive launch of the Raiden network could be a game changer.

Receive every day a current summary and the latest news of the last 24 hours of the world of cryptocurrency. @tighilt