What is Raiden Network And How To Buy RDN Coin
Raiden Network Token (RDN), What is it?
Raiden Network Token can be described as the Raiden Network’s native and sole currency, a network that defines its protocol as one that enables scalable, quick, inexpensive token transfers of Ethereum. Unlike other protocols, this one serves to be an accompaniment to Ethereum rather than a competitor, permitting all tokens compatible with Ethereum to be used.
Generally, the team behind Raiden terms scalability as the primary issue with blockchain. Massive fees together with extended confirmation times restrict the possibility of mainstream adoption of blockchains like Bitcoin and Ethereum somewhat impractical for now. Raiden Network hopes to insert itself at this point. Solving problems with Ethereum scalability by making use of off chain transactions, Raiden can deliver almost instantaneous, cost-effective payments irrespective of the transaction quantity to be handled in the network.
Key features of RDN
The Raiden Network can be referred to as the key to Ethereum's scalability problems and can be likened to as Ethereum's answer to Bitcoin Lightning. However, getting to grips with what Bitcoin Lightning stands for and its purpose will aid the understanding of RDN.
A video posted on the official website of the Raiden Network states that before the mainstream implementation of blockchain payments happen, it has to have the capacity to handle approximately 100,000,000 transactions per second (tps). At this moment, the Ethereum blockchain is able to facilitate about 10-15 tps. This amount is extremely inefficient when it is compared to for example the Visa credit card which is capable of handling 45,000 tps.
The significant features that comprise the Raiden Network to lower fees and hasten transactions are listed below:
Accelerated confirmations of transfer (less than a second). transfers on the Ethereum blockchain currently can take anything from a couple seconds to minutes.
Private transfers which are not able to be viewed on a global ledger.
Capability to solve issues regarding scalability, so as to aid mainstream acceptance of Ethereum, which would enable it to become the worldwide peer to peer payment infrastructure and electronic cash system it was originally planned to be.
Low transaction fees
Capability for micropayments
Able to work in conjunction with any ERC-20 token. Tokens capable of this include Tron (TRX), EOS (EOS), Binance Coin (BNB), Icon (ICX), and much more.
How Does RDN Work?
Angel.co’s hiring page states that RDN will function by converting “from a system where every transaction hits a shared ledger on the blockchain to a system where users are able to transfer tokens privately by exchange of messages without protocols involving a worldwide consensus whilst also preserving security and guaranteeing result usually expected of the blockchain system”.
The technology behind the Raiden Network can be conveyed as a level situated above blockchain, where it eventually creates a symbiotic union between itself and the basic framework of Ethereum. It eradicates the necessity of a global consensus, which only serves to drastically reduce the network’s ability to scale at upgraded levels. Eliminating the necessity for a global consensus is processed by capitalising on a network of payment channels which enable secure value off chain transfers by not requiring the involvement of the blockchain for every single transfer.
When whittled down to its simplest terminology, the protocol involves the following:
Payment channels that enable safe, off-chain transactions. Coupled with smart contracts and cryptographic proof, transactions can be effectively and securely finalized, thanks to its on-chain “down-payment” system.
Payment channels that are bidirectional, enabling for token transactions that can go back and forth.
Multihop transfers that are hash-locked, enabling the tokens to go through a number of nodes rather than through a single node whilst still being secured by a “key”. This all cannot take place and the tokens cannot be claimed on chain without the original sender providing a secret key.
How to Buy RDN Token
The process of acquiring Raiden Network Token
To expatiate on these steps, the example used will be the most convenient and seamless Raiden Network Token coins wallet, which is MyEtherWallet.
The first step is to head over the MyEtherWallet website (myetherwallet.com), enter in a password that can be easily remembered but hard for others to guess.
select 'Create New Wallet'.
The next step would be to create a wallet
Creating a wallet at Myetherwallet.com
select 'Download Keystore File'. It is imperative to read and fully understand the caution and warnings.
This file should be backed up to a very safe.
Once this has been done, select 'I understand and then continue on.
Storing the keystore file
Next up is an extremely powerful unencrypted private key given to you to access your wallet.
There will be an option available to you to print a paper wallet displaying all the necessities needed to access the wallet.
The next step would be to select 'Save your address'.
After this is done, the new wallet can now be opened, the steps below show how:
Click the 'Keystore File' option, and then select the upload menu to upload the keystore file that was saved earlier, the next step would be to enter your password.
Once this is done, scroll to the bottom of the page to see the newly opened wallet.
A long string of numbers and letters will be visibly labelled as 'Your Address'.
This large string is what is known as your personal wallet address, used to facilitate sending of Raiden Network Token coins.
This address should be copied and stored in a safe place that can be accessed quickly.
The next step will be to purchase the common cryptocurrency Ethereum, which can be exchanged for Raiden Network Token
Any Ethereum exchange can be used ranging from Kucoin to Coinbase and many others. For this guide, Kucoin will be used as an example.
Step 1: Create a Kucoin account and register using Google 2 step authenticator.
Step 2: Send BTC or ETH to the newly created Kucoin account (ETH is recommended thanks to its lower transaction fees). your ETH wallet address can be found by selecting the deposit button situated next to the ethereum option in the assets category.
Step 3: Once the required ETH amount has been transferred to your Kucoin account, the next step would be to search the Markets tab for RDN and enter in a buy request for the current lowest sale price or a price you prefer to buy at.
DISCLAIMER: Cryptocurrencies like Bitcoin and Ethereum are highly volatile and risky. We cannot give you advice about what to invest in or how much to invest. You should take the information we provide in our courses and blog posts, do your own additional research on specific cryptocurrencies, and plan to decide what kind of investments work for you. We highly recommend talking to a financial advisor to understand the level of risk that you are comfortable with.
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