# Raiden Network 1. An upcoming protocol change to the [[Ethereum (blockchain)]] [[blockchain]] that is designed to allow for high-speed transfers and better scaling. Similar to [[Bitcoin (blockchain)]]'s proposed [[Lightning Network]]. 2. The Raiden Network is an [[Off-chain|off-chain]] scaling solution, enabling near-instant, low-fee and scalable payments. It’s complementary to the [[Ethereum (blockchain)]] blockchain and works with any [[ERC 20]] compatible [[Token(s)|token]]. The Raiden project is work in progress. Its goal is to research state channel technology, define protocols and develop reference implementations. THE PROBLEM . Blockchains don’t scale well because there needs to be global [[Consensus Mechanism (algorithm)|consensus]] on the order and outcome of all transfers. Every participant needs to learn about all updates to the shared [[ledger]]. Hardware and bandwidth constraints set a limit on the number of updates per second that can be shared in a [[decentralized]] network. RAIDEN NETWORK 101 . The basic idea of the Raiden Network is to avoid the [[blockchain]] consensus bottleneck. This is done by leveraging a network of payment channels which allow to securely transfer value off-chain, i.e without involving the [[blockchain]] for every transfer. ___ <iframe width="560" height="315" src="https://www.youtube.com/embed/R1tIy1XgdPw" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe> ___ <iframe width="560" height="315" src="https://www.youtube.com/embed/1wAbCnD-M_I" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe> ___