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What is Raiden? The Lighting Network of Ethereum

There has been a long-running obsession with the throughput of transactions for the Ethereum community. Many believe that technology won’t have a future unless this is resolved. This mainly affects…

The post What is Raiden? The Lighting Network of Ethereum appeared first on CoinCentral.

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There has been a long-running obsession with the throughput of transactions for the Ethereum community. Many believe that technology won’t have a future unless this is resolved. This mainly affects traders, especially those loyal to DEXs, and push to solve it has lead to many exciting avenues.

Entire blockchains have been born around the scalability dilemma, such as Algorand. Ethereum has had the problem at the core of its existence from the beginning. Now the Raiden network appears to be a possible solution for the network.

Learn more about the Lighting Network here.

What Is Raiden?

Now, the Raiden platform acts as a second layer payment channel for Ethereum. The ETH network the second most used public blockchain in the world, due in part for being the first to allow smart contracts in the blockchain. But the current slowness if it when processing payments make it a bad contender for businesses as a point of sale (POS) service for groceries and other necessities.

The gold standard for the crypto world is the VISA payment network with its large transactions per second capacity and ease of use. On top of all, if Etehreum is widely used, the transaction fees will increase to balance the application, limiting is potential. Ethereum has to scale for it to be widely accepted.

Enter the Raiden Network which an algorithm called Balance of Proofs to increase speed and security. The main advantage is that Raiden doesn’t need global consensus, like the main Ethereum network, making transaction confirmation fast and easy.

Since Raiden works outside the main network, it is known as an off-chain solution or layer two solutions. Not all of the transactions need to be recorded in the main Ethereum network for confirmation on the Raiden platform to occur.

When using this network, the Ethereum Ledger is not the backbone of transaction authentification. It is only used to verify what Raiden calls “net claims resulting from off-chain transactions”. Potentially this means that Raiden could be sue to push more transactions per second without full main net verification.

Imagine a series of country roads connecting two major cities. The cars on them can only travel at a slow speed since the width is narrow and there is congestion all the time. Now, the two cities get their act together and build a large highway connecting the two. The travelers wanting to arrive at their destination faster have the option of going to the freeway and, for a fee, moving faster than the people on the roads.  

How can Raiden work?

Well since the protocol is an off-chain solution, the platform locks the Ether used for the transaction into a smart contract which frees the funds once the operation is complete. The smart contract is bidirectional, meaning both parties in the using the contracts can transact with each other. The channel is open, in the form of the smart contract, until all of the parties involved conclude to end it.

The accounts participating in the creation of a channel are given certificates at the start of the process. Not all the checks are needed though since the users only have to know the latest one to continue as members. This is the work of the algorithm developed by the project which records all the checks in the channel at any given point in time. This means economic activity in the network is secured by the balance of Proofs protocol.

Once the channel has accomplished its function and the parties involved want to exist and retrieved their respective funds, then they move to the main network. The smart contract quantifies the balance sheet for all parties involved and transfers the funds, finally closing the channel. Once all parties involved have presented their balances of proof, the funds from the smart contract can be withdrawn.

If a party member fails to give its balance in the allowed time the channel is still closed. The balance of the closing member will be used to calculate the funds of the silent party, and all the Ether will still be transferred. This is the mechanism Raiden has implemented to prevent one member from holding the funds in an account hostage.

Benefits of using Raiden

All transactions on the Ethereum network occurs with the associated gas price used to tax computations. So, there is a disconnect when talking about the fee in relation to the amount of Ether or a Token transferred. If the network is experiencing high use, a small transfer is discouraged because the fees become too large. The push-pull relation between gas fees and on-chain transactions give way to periods where the economic incentives are against using Ethereum for small amounts.

This is not the case on the Raiden Network where large or small amounts are economically feasible giving the fee structures. Also, payment can be split into smaller pieces over an extended period all for the same fee. 

The bonus is time to reach confirmation is no longer dependent on the parameters of the main network, and it becomes practically instant. This is because verification on the main Network depends on block generation, coupled with, the lapse it takes a miner to pick add the records to the block being created from the various unsettle transactions. This is no longer a necessary process when Raiden, the smart contract, as the Proof of Balance, can handle throughput with the speed of a text message.

Learn about block size and the reason why there is a block limit

Needless to say, this method directly impacts the scalability of the Ethereum protocol. The transactions per second on a blockchain are limited block size and block confirmation time, no matter how many active nodes participate. On the other side, the upper limit of the Raiden Protocol scales linearly with the quantity of the participants, resulting in a scalable and secure solution for future transactions.

The innovation brought by the Raiden Network to Ethereum is hard to understate. The main network is leveraged for its security while the Raiden Protocol provides speed and flexibility.

Source: https://coincentral.com/what-is-raiden-the-lighting-network-of-ethereum/

Blockchain

Da Vinci Capital Reportedly Requests $100 Million from Telegram for TON’s Failure

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A large investor in Telegram’s failed Open Network (TON) has reportedly requested $100 million in compensation from the company. Otherwise, the investor – Da Vinci Capital – has warned with taking legal actions against the messaging platform.

TON Investor Demands $100M

Telegram’s TON initiative was among the most widely-discussed blockchain-related projects in the past few years. However, the endeavor faced almost immediate backlash from the US Securities and Exchange Commission (SEC) as a US court decided at one point that the native currency – GRAMS – is a security token, which couldn’t be sold in the US or anywhere else.

Telegram attempted on multiple occasions to fight the court’s decision and to prove that GRAMS is not a security. However, to no avail and Pavel Durov, the company’s CEO ultimately had to throw the towel by saying that “Telegram’s active involvement with TON is over.”

Although the company has distanced itself from the failed blockchain project, the problems keep following it, according to a recent report by Forbes Russia. Citing anonymous people familiar with the matter, the coverage said that Da Vinci Capital, an investor in the $1.7 billion initial coin offering, has requested compensation for TON’s failure.

Lawyers from the Moscow-based investment company have reportedly sent a letter of intent to file a claim to Durov, Telegram Vice President Ilya Perekopsky, and other executives and lawyers involved with the project.
The report says that Da Vinci Capital had demanded roughly $100 million as compensation.

Two Weeks to Answer

Forbes’ coverage further explained that Durov and his colleagues have two weeks to transfer the funds or notify the lawyers from the investment company if they decide to reject it.

However, if Telegram fails to answer in the provided timeframe, Da Vinci Capital has the right to take the matter to court.

Apart from these allegations, Telegram recently negotiated funding round to raise at least $1 billion in a private bond placement to accredited investors from Russia, Europe, the Middle East, and Asia. Those bondholders would be able to convert debt into shares at a 10% discount to the offering price if Telegram decides to go public in the next five years, revealed the conditions of the round.

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Source: https://cryptopotato.com/da-vinci-capital-reportedly-requests-100-million-from-telegram-for-tons-failure/

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ChiliZ To Expand Operations, Will Invest $50 Million in the US

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Following milestone partnerships with sports teams in Europe, ChiliZ have their eyes set on conquering the United States. The fintech platform will open a new office in one of the world’s major commercial cities, New York.

ChiliZ To Set Up New York Office

Maltese blockchain giant, ChiliZ is scaling up operations after securing several partnerships with top European sports franchises. Reuters reported earlier today that the fan engagement platform would open an office and invest $50 million in the United States. According to its chief executive, Alexandre Dreyfus, the move should bring the firm within reach of top United States sports outfits. He told Reuters :

“A huge focal point for us in our global growth plans is the U.S.. That’s why we’re opening a New York office and investing $50 million into the country’s sports industry in order to launch Fan Tokens with leading franchises from the five major U.S. sports leagues”

On launching Fan tokens, ChiliZ has made headway through its subsidiary, Socios. It has partnered with football behemoths like FC Barcelona, Juventus, Paris Saint-Germain, AS Roma, Galatasaray, and Atlético de Madrid to launch branded fan tokens. These permit owners to engage in club polls, access VIP rewards, and partake in chat forums.

The company currently has offices in Malta, France, Turkey, Korea, Switzerland, and South America. It had earlier announced that it would open offices in New York and Madrid. With the New York office inching towards reality, Chiliz is undoubtedly advancing towards global growth.

Aims To Double Up on 2020 Revenue

Speaking further about the expansion, Dreyfus boasted about his company’s capacity to generate returns for its partners in the sports and entertainment industry. He said:

“We head to the U.S. with a proven track record in generating millions of dollars of revenue for some of Europe’s biggest sporting organisations. In 2020, we shared more than $30 million with our partners, but this year we’re targeting a minimum of $60 million.”

Revenue from the company’s partnership with seven-time European champions AC Milan proves Dreyfus is not bluffing. The Italian football giant launched its token ($ACM) on Binance on February 24th. Within hours of the launch, over $6 million was generated as trading volume hit $50 million in the first 30 minutes.

Big Market For ChiliZ?

For Joseph Edwards, Enigma Securities head of researcher, there is no better time to seize the initiative. He opined that the soaring interest in NFTs indicates a big market. He elaborated further that NFTs bridge the gap between fans and their subject of interest, especially as Covid-19 caused a disconnection.

“Fan tokens right now are just hitting the perfect itch at the perfect time – fans are disconnected physically from their fandom, and this helps bridge that gap,”

NBA Top Shots seems to be a perfect example. The NFT platform has continued to gain momentum as interest surges. It reached a record-breaking $231 million in sales over the past 30 days.  Perhaps, ChiliZ is taking a cue from this to target the American sports market.

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Source: https://cryptopotato.com/chiliz-to-expand-operations-will-invest-50-million-in-the-us/

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Crypto services firm BCB Group raises $4.5M led by North Island Ventures and Blockchain.com Ventures

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BCB Group, a crypto payment/trading services provider, today announced it has closed a $4.5 million investment round. The strategic funding was co-led by North Island Ventures and Blockchain.com Ventures; with participation from Pantera, L1 Digital, and Pack Capital.

As a dual regulated institution, BCB Group offers an end-to-end suite of payment processing, cryptocurrency trading, and custody. Services are accessible through a unified API-enabled platform; allowing clients to access a full range of crypto-asset products in one place.

Funding

The proceeds of the round will be used to fund investments in several new initiatives…

These initiatives include: BCB Treasury, a service designed to help companies interested in investing in bitcoin as a treasury asset. BCB Yield Accounts, a product offering clients a return on their positions. And BCB Wealth Partners, a comprehensive crypto service for private wealth clients.

“There’s so much more we want to offer our clients; and many untapped regions we’d like to be in to help those markets grow via reliable payments and market infrastructure. This funding round comes at a very exciting time for BCB Group and will be transformative for our client experience.”
– BCB Group Founder and CEO, Oliver von Landsberg-Sadie

Previously, back in March 2019, BCB Group received funding from NKB Finance and a private investor in a $1 million seed round; which brought the company much-needed talent in engineering and operations.

Source: bcbgroup.io

Source: https://www.cryptoninjas.net/2021/03/02/crypto-services-firm-bcb-group-raises-4-5m-led-by-north-island-ventures-and-blockchain-com-ventures/

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