Raiden Network Token

Raiden Network token (RDN) is a cryptocurrency belonging to the Raiden project. The Raiden is an open-source project that uses state channel technology to scale Ethereum. The state channel technology is a process that facilitates users to transact outside the blockchain. According to the website, to carry out the process of scaling, Raiden project developed the network known as Raiden Network.

The Raiden Network is an off-chain scaling solution that functions on the Ethereum blockchain and seeks to enable economical, fast, and scalable token transfer for ERC-20 tokens. The term off-chain signifies transactions that take place outside the blockchain. The network also seeks to provide users with security, privacy, finality, and decentralization like blockchains. Thus, aiming to create an ecosystem where users can transfer tokens without a global consensus mechanism while resolving the issues that existed with the Ethereum blockchain. To operate on the network, users and clients have to pay fees for the payment channels to transfer tokens. The payment channels are the technology that facilitates off-chain transfers of on-chain tokens. These fees thus collected by the network are of two types:

The collection of these fees aims to allow the network to function properly while ensuring proper maintenance of the network. Further, to ensure a proper service framework on the network is maintained, the Raiden project introduced the cryptocurrency, the RDN token. The RDN token is a virtual currency of the Raiden Network and aims to be used for many service-related purposes on the network, which includes:

These utilities of the RDN token seek to help in maintaining a proper operational structure for the service framework within the Raiden Network.

The Raiden Network launched its token RDN on October 18, 2017. The token has a maximum total supply of 100,000,000 RDN.