The Raiden Network, a new payment channel which provides scalable, low latency and cheap token transfers for Ethereum, has just finished their first proof of concept version.
This PoC, enacted 8 hours ago (at the time of this writing), was the first working core of Raiden. The transaction was made from a Raiden client in Copenhagen to one in Mumbai, mediated by a node in Florianópolis. This PoC is the first success in a series of milestones leading up to their beta version.
Raiden uses a P2P network of payment channels and it’s implemented as an extension to Ethereum. In order to facilitate transfers and manage deposits on the Ethereum blockchain, Raiden nodes run alongside, and communicate with, Ethereum nodes. The basic idea is to switch from using a shared ledger for transactions to a model where users can privately exchange messages that sign the transfer of value. This creates more privacy on transactions for users.
Vitalik Buterin on state channels comments:
“State channels are an important technology that has the potential to greatly improve the scalability and privacy of many categories of blockchain applications; in conjunction with sharding and other privacy-preserving cryptographic technologies, they are an important ingredient in helping decentralized systems to achieve the properties that mainstream individual and institutional users expect and deserve.”
To try out your first Raiden transaction, head over to their GitHub.