All major cryptocurrencies conduct maintain had to come upwards up with novel ways to ensure their networks scale effectively. In the Bitcoin world, that solution is known equally Segregated Witness, which paves the way for the Lightning Network. Ethereum has a similar protocol known equally Raiden. Unfortunately, it seems the developers of this scaling solution are going a slightly unlike road than was originally assumed. Their invention to host an ICO has been getting a lot of negative feedback.
RAIDEN ICO CREATES PLENTY OF ANIMOSITY
It has to live on said that the Raiden projection looks pretty spectacular on paper. Bringing this novel grade of scalability to Ethereum is quite a meaning development. In fact, it volition probable challenger Bitcoin’s Lightning Network. Whichever currency brings its scaling solution to the masses commencement volition conduct maintain a competitive advantage; that much is certain. However, such projects conduct maintain months if non years of difficult work. Most of that piece of employment is performed without fiscal compensation, but that is alone to live on expected when working on open-sourced projects.
It was so a surprise to everyone to acquire that the Raiden squad had roughly unexpected plans. Instead of developing this solution equally originally planned, it has straight off been turned into a cryptocurrency ICO. While it is alone normal that the squad would await roughly shape of compensation for their difficult work, only seeing Ethereum succeed should live on all the wages open-source developers need. Some people experience this ICO is alone justified subsequently all their difficult work. Others, such equally Charlie Lee, run across it equally a cash grab.
It does appear the ICO tokens volition live on used equally a way to pay network fees on the Raiden protocol. That’s an interesting idea, but it doesn’t call for a proprietary token whatsoever. In fact, 1 could only exercise gas similar Ethereum does today. Rather than paying these fees to miners, they could live on distributed to nodes providing payment channel functionality, with other things. Creating a novel token out of sparse air is a real controversial determination that may hinder the chances of Raiden succeeding inwards the long run.
What is fifty-fifty to a greater extent than intriguing is how the Raiden squad claims they volition non live on actively marketing this token whatsoever. If that is the case, the whole ordeal of running an ICO makes fifty-fifty less sense. The toll of tokens volition besides reject during the course of report of the sale, which agency at that spot volition live on no incentive to invest early on inwards this token sale. In fact, at that spot may non live on whatever ground to invest at all inwards the RDN sale. Only fourth dimension volition say how this province of affairs volition play out. It is evident these tokens volition Pb to speculation commencement as well as foremost, which is non necessarily something the Raiden squad should live on facilitating.
Rest assured the Raiden ICO concept volition choke along to spark ground with cryptocurrency enthusiasts for roughly fourth dimension to come. In the Blue Planet of Bitcoin as well as Litecoin, Lightning Network evolution has gone on for several years straight off without anything resembling an ICO or token sale. This shows that things tin dismiss live on done only fine without resorting to these controversial methods. Creating an ICO related to a scaling solution tin dismiss live on seen equally a way to create a business, rather than a decentralized network.
