During the last few years, the cryptocurrency and blockchain industries have been expanding and reaching new users and companies all around the world. However, scaling solutions remain one of the most challenging improvements for blockchain networks, including those of Ethereum (ETH) and Bitcoin (BTC).
Some of the most popular scaling solutions that were proposed in the last years include Segregated Witness (SegWit) and the Lightning Network (LN). Nonetheless, there are some firms working on different and more innovative solutions that would allow for off-chain payments to be processed faster and easier.
RIF Lumino Network
Blockchain networks tend to be certainly congested. It is worth remembering the time in which Bitcoin reached $20,000 and the whole market was moving funds through the network from one account to another. At the same time, Ethereum experienced similar issues when it was affected by the decentralized application (dApp) Cryptokitties in which users were sending tokens through the Ethereum network.
In these two occasions, these networks were totally congested. Indeed, it was very difficult to send a normal transaction for an acceptable price. Other blockchains were also affected by these issues as well.
Although there are some solutions to these issues, they were not able to solve the problem as a whole. Segregated Witness and the Lightning Network are still expanding and it may take many years to reach the majority of the market. On this context, RIF´s Lumino Payments could be the final solution to these scalability problems.
By using Rootstock (RSK) smart contract platform, RIF Lumino Payments provides developers with a third layer for scalability when it comes to payments through blockchain technology. At the same time, the Rootstock Infrastructure Framework Open Standard (RIFOS) will be working in order to create a new blockchain system on top of the Bitcoin network. For further information, here´s an interesting article explaining how RIF Lumino Payments is working to revolutionize payment solutions on top of Bitcoin.
With Lumino, the goal is to process a high volume of TPS, allowing it to reduce network congestion exponentially while enabling unexpensive payment solutions on a decentralized framework.
RIF Payments Full, Light and Exchange
As RSK reported, RIF Payments is divided into three protocols:
- RIF Payments Full: a protocol that works with a new abstraction layer allowing it to access a wide range of payment networks. With this RIF Payments Full protocol, it is possible to enable cross-token and cross-network payments.
- RIF Payments Light: this protocol helps individuals run light clients and allow them to have access to the RIF Payments Full network without having to reduce security and decentralization.
- RIF Payments Exchange: with this protocol, it will be possible to generate intra-token exchange rates and optimize the routing of payments.
These are some of the advantages that RIF Lumino Payments is working on to deliver:
- Lower costs: it is cheaper for clients to send payments through this network rather than through other platforms.
- Faster Confirmation Times: as it is cheaper, it is also faster to make payments through the Lumino Network and its ecosystem.
- Support for RSK-Desployed Tokens: it offers dedicated support to RSK-Deployed tokens in the market.
- Cross-Token Payments: users will have the possibility to make cross-token payments through this network.
- Lightning Network friendly: it is not a competitor to the Lightning Network. It´s a complementary solution.
It’s also important to mention that RSK & RIF are contributing to the DeFi ecosystem. On this context, RIF Lumino Payments is without a doubt a key piece in the puzzle as it will enable high TPS output with unexpensive associated costs. That´s exactly what DeFi needs to become mainstream.