By
Chimamanda U. Martha
April 24th, 2024
Ethereum is the most popular and widely used blockchain project. The recent development of their Raiden Network will make ETH rank way ahead of its closest competitors.
The cryptocurrency markets are still getting a beating as 2018 ends with the bears still roaring. Amidst all the noise, markets keep projecting growth and progress in 2019 as community remains uncertain about the market swings. However, the blockchain industry keeps continuously evolving with new innovations and developments in technology and software fronts.
Ethereum [ETH], the third-largest cryptocurrency, has in the recent weeks faced criticism from its community because of its performance graph. The community may soon rejoice in the news that the crypto could soon process one million transactions every second. The project has been in the pipeline since early this year. We reported back in July when the Final Test Network Launched for Ethereum Payments Channel Raiden.
The competition is stiff and only the strongest will survive. The development is much-welcomed progress especially with 2019 being projected that it will majorly comprise of regulatory reforms in the crypto markets.
Ethereum ranks as the most popular and extensively used blockchain project in the whole blockchain industry. It currently faces sharp competition from Tron, Lumens, EOS, Stellar, and many others. On ETH, developers can build and deploy decentralized applications. The competition prompted Ethereum to develop ways to enhance its platform and retain its dominant relevance in the blockchain space.
The Protocol of Raiden Network
In the recent months, Raiden Network has developed a protocol named the “Red Eyes protocol.” This new development aims at scaling the transfer of tokens on the Ethereum network. The protocol went live on the Ethereum mainnet in an alpha testing phase. Users should use the protocol carefully while participating in the Raiden Network’s bug bounty program as advised.
Since the protocol is relatively new, the team has taken a strong mitigation precaution to minimize damages resulting from misuse of the protocol or bugs. They explained in a blog post that the network is not yet production ready stating:
“We are excited to announce that the Raiden Network Red Eyes release is live on the Ethereum mainnet! The Red Eyes release is an alpha testing release. It is absolutely crucial to read this post including the security notes carefully before using the software”
What the Protocol Means for Ethereum
When ETH was trading around its all-time highs earlier in the year, the network became excessively congested. It supported increased transactions and Ethereum dApps like CryptoKitties. Once the Raiden Network is fully deployed, the ETH network will handle up to one million transactions per second.
Ethereum will achieve this milestone by executing transactions off-chain, resulting in cheaper and faster transactions than before. The Raiden Network Red Eyes protocol has several similarities compared to the Lightning Network protocol for Bitcoin. Both of them present an off-chain scaling solution that enables the execution of faster and cheaper transactions.
If the Red Eyes protocol is successful, Ethereum’s price may increase significantly. Moreover, ETH’s status as the leading dApp development and smart contract platform will be enhanced. The price of Ethereum is oscillating around $125, an 8% increase from the $115 price just before Red Eyes protocol release.