Raiden Network

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  • Created by String Labs
  • The Ethereum version of Lightning Network
  • Has its own token Raiden
  • Raiden is a technology that leverages off-chain state networks to extend Ethereum
  • “The basic idea is to switch from a model where all transactions hit the shared ledger on the blockchain (which is the bottleneck) to a model where users can privately exchange messages which sign the transfer of value.
  • Raiden uses a network of p2p payment channels and deposits in Ethereum to preserve the guarantees expected from a blockchain system.
  • Raiden is implemented as an extension to Ethereum. A Raiden node runs alongside an Ethereum node and communicates with other Raiden nodes to facilitate transfers and with the Ethereum blockchain to manage deposits. It offers a simple API which makes it easy to use Raiden in DApps.”

Applications:

  • Micropayments for content distribution: Alternative to Paywalls, Ads and Subscriptions. (Figure a decentralized youtube where the creators of a video are paid for every second watched)
  • Decentralized M2M markets: especially in IoT where tiny chunks of bandwidth, storage, cpu time, energy, sensor data, etc. can be traded.
  • Frictionless Token Systems: Game Tokens, Reward Tokens, Private Currencies
  • API Access: Accessing and monetizing APIs on a per use basis is at the core of the upcoming Machine-to-Machine economy
  • Fast Decentralized Exchanges

On how it is different from Plasma: https://www.reddit.com/r/ethereum/comments/8lvq6v/how_does_plasma_cash_compare_to_raiden/