Raiden Network Expands — Market Mad House

The Raiden Network is looking more like a real financial services organization and less like a blockchain experiment.

For instance, Raiden Network builder brainbot labs has established the Raiden Trust to manage the Raiden Network Token (RDN) Ethereum Request for Comment (ERC20) cryptocurrency. In particular, the Raiden Trust will manage 16 million of the 100 million RDN in circulation, a Medium post indicates.

Interestingly, the Raiden Trust operates like a bank. For instance, the Trust will finance the growth of the Raiden Network by financing projects that use the Network and its technology. For example, people trying to build apps or services that use RDN.

Notably, they base the Raiden Trust in Liechtenstein and will act as a central bank that will govern the Raiden Network. However, brainbot carefully refuses to call the Trust a bank. Thus, the supposedly decentralized Raiden Network is getting more centralized.

What is the Raiden Network?

The Raiden Network is a sidechain designed to speed up payments on the Ethereum blockchain.

Currently, Ethereum’s biggest limitation is that its blockchain can only process between 15 and 20 transactions per second (TPS). Consequently, an Ethereum game or e-commerce site could crash if it…