Microraiden recently launched the payment channels based on the Ethereum blockchain technology. The main aim of the channel is to provide micro-payment solutions to the customers. One of the main facilities which the network aims to provide to the customers is to create a second layer of payment channels which would significantly reduce the cost of transactions. Also, it would allow them to send micro-payments as well at reduced cost.
Currently, the Microraiden development team is trying to build the tools which would help in the creation of such channels for individuals and enable them to send micro-payments.
According to the team, many of the decentralized app developers want to use the Raiden network to create such payment channels. The team is just providing them with an appropriate ecosystem in order to do so. The main aim of the launch is to eliminate any bugs that might be present on the platform. Currently, the amount of Raiden tokens which can be deposited are limited. This is to ensure that first all the bugs are eliminated and thereafter only, larger payments are allowed on the platform. There is also a bug bounty program as well which ensures that any of the bugs which are detected by the volunteers as well would be rewarded. This would easily enhance the capability of the development team to eliminate all the bugs before it is launched for larger payments as well.
With the development of more and more applications related to the Ethereum blockchain, it is becoming pretty clear that such payment solutions would help a lot of users who are not able to currently transact due to the high charges when compared to the amount which is to be sent. While transacting higher denominations, this might not be a problem but when it comes to transacting in lower denominations, the transaction charges are a bit on the higher side due to which, the platforms cannot be used easily for transacting in lower amounts. However, with the launch of these added payment channels, micro-payments would become possible as well.
The need of a channel which supports such micro-payments has been felt for quite some period of time. The Microraiden team has taken the right step to launch such a platform with the help of which, micro-payments would indeed be possible. It remains to be seen how much popularity the platform receives. But there is a definite need for such a platform. As cryptocurrencies become more and more popular smaller transactions would be conducted on the cryptocurrency platform which would increase the need for the platform which has lower transaction fees and which allows transactions in such smaller denominations.
Mahesh Sashital is cofounder of Smartereum.
He was previously Vice President at J.P. Morgan. He has over 15 years of experience in software engineering at various Fortune 20 companies. He has a Bachelor's in Engineering from the University of Mumbai and an MBA from the University of Texas-Austin.