The State Of The Raiden Network

Reflections on our origins, progress & future


Soon after the launch of the Ethereum Mainchain, the community embraced an expansive vision of the Ethereum ecosystem, including hundreds of use cases covering all aspects of society. They also anticipated the scaling problems that would inevitably result from mainstream adoption. Ethereum would require a fast, inexpensive and trustless payment Layer 2 solution — something similar to the Lightning Network for Bitcoin.

Raiden from Mortal Kombat


By the summer of 2016, we released the initial proof of concept of our scalable payments solution on Ethereum mainnet.

Current State

We set out to build a payment channel technology for peer-to-peer ERC20 token transfers, and we have done so. But no significant adoption of this technology has materialized.

Market Demand Lower Than Anticipated

Seven years ago, the Ethereum community sought a scalable peer-to-peer token transfer solution capable of processing small everyday payments using ERC20 tokens.

The Emergence Of More Advanced Scaling Technologies

When we started the project in 2015, payment channel networks were the only known decentralized approach able to scale token transfers. The Raiden Network was committed to implementing this cutting-edge technology.

Moving Forward

Fixing The Gas Issue

As Ethereum became popular, gas fees on Ethereum increased dramatically, causing problems. High gas fees are a significant barrier to Raiden Network adoption because they make setting up Raiden payment channels (which allow users to enjoy nearly costless transactions) prohibitively expensive.

Finding The Niche

Although rollups have many benefits, payment channel networks like Raiden have some unique properties regarding latency, transfer cost, and decentralization. In theory, the Raiden Network still offers one of the very best trustless foundations for payment products with massive scale. The challenge moving forward is to discover the niches in which these characteristics are crucial, thus creating new opportunities for the Raiden Network to thrive.


Please note that even though we do our best to ensure the quality and accuracy of the information provided, this publication may contain views and opinions, errors and omissions for which the content creator(s) and any represented organization cannot be held liable.



Fast, cheap, scalable token transfers for Ethereum. The Raiden project is led by brainbot labs Est.

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