The new Ethereum scaling solution Raiden is in many ways similar to the bitcoin’s Lightning Network off-chain micropayment processing system.
Ameen Soleimani, a software engineer at ConsenSys, shared some details concerning the timing of the release speaking at Construct 2017 conference, CoinDesk writes. According to Soleimani, the protocol implementation is “largely finished” and the pilot version may be ready by the end of the first quarter 2017.
For the first time, the idea of the network was brought to light in 2015. Raiden is designed to take a load off the main blockchain separately processing micropayments and thus facilitate machine-to-machine transactions using the Ethereum blockchain as a settlement layer. It is similar in operation to Lightning Network – the solution developed for the bitcoin system.
Due to the fact that a mass of petty transactions is processed in a parallel network, their amount per second may reach more than one million and a transaction confirmation would take no longer than a fraction of a second. Another advantage of Raiden is its ability to work with any tokens that match Ethereum standards.
According to the creator of Raiden Heiko Hees, the system’s configuration is simpler than that of Lightning Network because “in Bitcoin the scripting language is rather limited.”
Transaction fees in the Raiden network are expected to be seven times lower than in the main Ethereum blockchain. Hees believes that the network of this kind would be a perfect match for the Internet of Things (IoT), since “the IoT economy will benefit from interoperability between multiple devices which could be senders or actuators.”