The Raiden Network and cross-chain transactions are Konrad’s keys to enhancing its trading performance.
Scalability is a word often encountered when it comes to making transactions and evaluating a blockchain’s performance. After all, why does it matter what a platform can do if every transaction on it takes hours to complete? The same can be said for the Konrad platform as well.
Unfortunately, the chain on which the Konrad platform is operating on, Ethereum, is often under fire for its scalability issues. Slow processing and confirmation times are one of the prime factors many believe for Ethereum’s lack of mainstream adoption but that has changed as of last year with the introduction of the Raiden Network.
What is the Raiden Network?
The Raiden Network is an equivalent of the lightning network of Bitcoin and the consummation of state channel technology on Ethereum. The fundamental concept of Raiden Network lies in its payment channels that allow users to exchange transfer signature privately off the chain, preventing blockchain bottlenecks from occurring. The Raiden Network also preserves the insurance mechanism in the blockchain system with P2P payment and deposit mechanism in the Ethereum platform.
How Does the Raiden Network Work?
As mentioned earlier, a key component to the functionality of the Raiden Network lies in its payment channels. Payment channels are channels that allow the transfer of tokens between participants without global consensus, although the channels need to be created and closed on-chain. As stated in Raiden Network’s official website, payment channels work through “digitally signed and hash-locked transfers, called balance proofs, [that are] fully collateralized by previously setup on-chain deposits”. They allow for unlimited transactions so long as the number of tokens transferred do not exceed its initial deposit. These channels stay open till the two parties involved submit their balance of proof to the blockchain and withdraw their tokens following settlement.
How Will the Raiden Network Enhance Konrad’s Performance?
Raiden Network uses off-chain state network to scale up the transaction processing capability of Ethereum. Consequently, the Konrad platform operates concurrently with the Ethereum nodes through Raiden nodes, and connects to other Raiden and Ethereum nodes to facilitate transfer and deposit management. This allows for a cohesive and extensive network infrastructure to be formed, allowing users to trade or deposit with convenience without long and arduous processing times. An example of such a payment channel network is illustrated in the diagram below.
As seen from the figure above, although person A does not have a direct payment channel to person C, person A is still able to transfer the tokens to person C through the network of payment channels established with persons B, E and D. Truly, with the aid of the Raiden Network, the world is only separated by six degrees.
In addition, Konrad intends to develop a blockchain browser that will include the shares of ownership, both locked and unlocked on every chain of a single asset. This will ensure the total sum is conserved, transparent and accessible to all investors involved. With a system of mutual trust and a mandatory access requirement, digital assets issued by all parties are now free to circulate widely and rapidly across the net. The existing framework can also then be further developed to form a cross-chain exchange system. This system will in turn facilitate cross-chain transactions and circulation of digital assets issued by different entities, allowing for higher liquidity at a greater convenience.
Conclusion?
Scalability is an issue every blockchain encounters when it hosts a large number of decentralised applications (DApps) on its platform. As the Raiden Network has demonstrated, there are always solutions to resolve the issue at hand. With the aid of the Raiden Network, Konrad smoothens the process of asset tokenization by redirecting blockchain traffic off-chain and cross-chain.
To find out more about Konrad, check out its socials at:
Bitcointalk: https://bitcointalk.org/index.php?topic=5148889.0
Facebook: https://www.facebook.com/KonradPlatform/
Medium: https://medium.com/@konradholdings/
Reddit: https://www.reddit.com/r/Konrad_Official/
Telegram: https://t.me/konrad_En
Twitter: https://twitter.com/KonradHolding
Website: https://www.konrad.holdings/
Weibo: https://www.weibo.com/7041318945/profile?topnav=1&wvr=6&is_all=1
