The Raiden Network Token (RDN) is an off-chain scaling solution, operating as an ERC20 token on the Ethereum platform. Currently in operation, the Raiden Network supports instant transfers, low costs, scalability, and privacy protection.
The Raiden Network serves as an infrastructure layer on the Ethereum blockchain. While the basic premise is simple, the underlying protocol is quite complex and not easy to implement. Nonetheless, the technical intricacies can be abstracted, allowing developers to build scalable decentralized applications based on Raiden using a relatively simple API interface.

I. Project Technology

The Raiden Network is an infrastructure layer built atop the Ethereum blockchain. Although the basic idea is straightforward, the underlying protocol is fairly complex and its implementation intricate. Nevertheless, the technical details can be abstracted, enabling developers to utilize a relatively simple API for building scalable decentralized applications based on Raiden.
Blockchain scalability is limited because global consensus is required for the order and outcome of all transactions. Every participant needs to be aware of all updates to the shared ledger. Hardware and bandwidth constraints dictate a limit on the number of updates per second that can be shared across a decentralized network. The fundamental concept of the Raiden Network is to circumvent the bottleneck of blockchain consensus. This is achieved through the utilization of a network of payment channels that permit secure transfers of value off-chain.

II. Project Applications

A clear use case for the Raiden Network is payments. Currently, the global payments industry generates approximately $2 trillion in revenue annually, and it continues to grow.

1. Retail Payments
There are numerous advanced Ethereum-based tokens vying to make blockchain-based payments accessible to the masses. In developing countries especially, these efforts could significantly improve the lives of millions. The Raiden Network may prove to be a crucial building block, as significant adoption hinges on scalable technology and competitive fees.
2. P2P Cash
Cash flow as we know it is declining due to a trend toward a cashless society. Scalable blockchain-based payments can help maintain the private and decentralized nature of cash while updating its user experience to meet the expectations of a new generation.
3. Micropayments
Blockchain is a leading candidate to become the payment infrastructure for the upcoming machine-to-machine economy. The Internet of Things might increase the volume of commercial transactions by an order of magnitude—and the cheaper the transaction costs, the more use cases will emerge.
Micropayments can be used to gain fine-grained access to APIs, bandwidth, computing power, storage, electricity, virtually any infrastructure. Content and entertainment are no exception, such as web pages, games, video or audio streams.
Today, many proposed DApps rely on microtransactions between network participants to incentivize cooperative behavior.
4. Instant Token Swaps
On top of payments, exchanging tokens might be the second most prominent blockchain use case, especially if current tokenization trends continue. Decentralized exchanges built on the atomic token swap feature of the Raiden Network allow for the instant exchange of tokens at low cost.

Related Links:
https://raiden.network/