The Raiden Network is testing the alpha version of its blockchain scalability solution on the Ethereum Mainnet. Specifically, the Alpha Test or Red Eyes went live on December 21, 2018.
Importantly, the purpose of Red Eyes is to enable the fast transfer of Ethereum and Ethereum Request for Contact (ERC) Tokens through the blockchain. Thus, the Raiden Network is trying to speed up the Ethereum blockchain to make it viable as a payment processing solution.
To explain, the current Ethereum blockchain limits the speed of payments to under 20 transactions per second (TPS). Hence, it is impossible to process large volumes of payments on the Ethereum blockchain.
The Raiden Network is trying to fix that by building a fast sidechain solution for Ethereum payments. A sidechain is a less-encrypted bypass around the regular blockchain that offers larger volumes and higher speeds.
The Raiden Network has been testing several features including the uRaiden micropayments solution and its Raiden Network Token (RNT) for some time. However, Red Eyes only went live last month.
Raiden Network Planning Improved Version
An improved version of the Raiden Network called Ithaca is under construction, the Raiden Network’s Medium reveals.
Ithaca will include several features designed to make the Raiden Network faster. The proposed Ithaca upgrades to the Raiden Network include:
- A pathfinding service designed to find the fastest and cheap route through the blockchain. I think this could be a game changer by making it fast and easy to build sidechains.
- A monitoring service which will allow Raiden Network users to go offline. Currently, Red Eyes users have to stay online all the time to test the Mainnet, the Raiden Team admits. Note such a service could help Raiden Network users find payment processors online right now.
- A Raiden Service Bundle (Registry) that will list all service providers working the Raiden Network. Interestingly, this could be a lucrative attribute because it will make it easy for payment processors to find customers. In addition, the Raiden Network could raise cash by selling data about its payment processors.
- Another proposed feature will enable processors to earn charge Raiden Network users a “mediation fee” for using for using their open blockchain channels. Users will presumably pay the fee in the Raiden Network Token (RNT). Hence, the Raiden Network could turn unused blockchain channels into a marketable resource. In addition, this could increase the demand for the RNT tokens.
Raiden Network is working with Matrix
Additionally, the Raiden Network is working with Matrix. Importantly, Matrix is an open standard designed to power decentralized, real-time communication through internet protocol (IP).
In particular, they can use Matrix for Instant Messaging, Voce over Internet Protocol (VoIP) Internet of Things (IoT) communications, and Web Real Time Communications (WebRTC). To clarify, WebRTC is a set of application programming interfaces (API) designed to enable fast audio and video communications through web pages, and mobile applications.
Matrix is important because it could allow Raiden Network payments to work with a wide variety of commercial applications. Examples of such applications could include video game platforms and peer-to-peer (P2P) payments applications.
Thus, it looks as if the Raiden Network could soon offer a commercial payments solution. Therefore, speculators and Ethereum developers need to keep a close eye on Raiden Network and the Raiden Network Token (RNT).