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The Raiden Network Token (RDN) is an ERC-20 token that powers the Raiden Network, a layer-2 scaling solution for Ethereum designed to enable fast, low-cost transactions through off-chain payment channels. RDN token holders can use their tokens for network participation, governance, and as collateral within the Raiden ecosystem, while the network itself dramatically increases Ethereum's transaction throughput by moving transactions off the main blockchain. What distinguishes Raiden from other scaling solutions is its focus on creating a scalable payment and liquidity network similar to Bitcoin's Lightning Network, but specifically optimized for Ethereum's smart contract capabilities.