What are Raiden Network’s off-chain solutions? How has RDN token fared?

Highlights

• A few projects in cryptoverse are working in off-chain transfers, claiming to be quick and cheap
• The Raiden Network says its Ethereum-based layer can be used for DApps and micropayments
• RDN token is substantially down as compared with the price of US$1 almost one year back

Not many may know that blockchain tech, based on the peer-to-peer distributed architecture, may not underlie every cryptoasset. Bitcoin uses blockchain, and so does Ethereum, but not all. Hedera (HBAR) crypto works on its own Hashgraph network, which does away with the need for blockchain.

That said, some projects are even trying to bridge the void between on-chain data and off-chain data. It is claimed by such projects that blockchain’s scalability is an issue.

The consensus mechanism results in delays, which calls for off-chain transfers that are quicker and involve a low fee. The Raiden Network is also one of such projects enabling off-chain transfers. Let’s know more.

What is The Raiden Network?

The platform exists as a layer on the popular Ethereum network. The Raiden Network claims it supports all ERC-20 (Ethereum-based) cryptoassets.

For now, the official website of the project mentions two offerings -- a wizard, and a light client. Raiden Wizard, according to the project, is a browser-based application, whereas the light client is an SDK. It is highlighted that the network can be used in payments that involve ERC-20 tokens.

The project stresses micropayments, where it claims off-chain transactions are better and easier as compared to consensus-based blockchain transfers.

The Raiden Network can also support the building of DEXs that can enable token swapping.

Also read: Which are top NFT games’ tokens by market cap?

What is the Raiden Network Token (RDN)?

As of writing, RDN, the native token of The Raiden Network, had a market cap of over US$10 million. This placed it among the top 1,000 assets on the CoinMarketCap list.

Also read: What are Zoro Inu token and its ‘deflationary’ feature?

RDN token's price was almost US$0.16, which had surged nearly 40 per cent in the past 24 hours. RDN crypto's trading volume had also appreciated during the said period.

On a year-to-date (YTD) basis, however, RDN was down, which mirrored the change in values of BTC and ETH in 2022.

Notably, RDN token was priced over US$1 nearly a year back.

Data provided by CoinMarketCap.com

Bottom line

While there is a wide choice of blockchain networks, including Ethereum, Solana, and Fantom, projects are also working on off-chain scalability.

The Raiden Network has the same model, and it is claiming use in micropayments and P2P transfers. RDN token of the network has lost value this year, with its price substantially down as compared with a year back. But this is also the trend with many large-cap cryptos.

RDN crypto price prediction, considering the volatility of the token and also of the wider market, can be very speculative.

Also read: What is Elon Goat token and how is it linked to Elon Musk?

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