The Red Alloy Wire is, simply put, an upgraded and more flexible version of Redstone dust. Rather than the 15-block range of dust, signals travel through wire for up to 255 blocks, far more than most uses would require. It can be placed on all six sides of a block, allowing for vertical signal transmission and even hidden wire on the underside of blocks.
Red Alloy Wire may be placed on any non-transparent block, which will receive power from the wire. It can also be powered indirectly by powering the block it's placed on. Only uninsulated wires can be powered this way.
Unlike Redstone dust, Red Alloy Wire is not destroyed when in contact with water or lava. It will instead act like any other block and raise water. Also, in creative, if trying to middle-mouse red alloy wire on walls/ceiling, it will give you a stone cover.
When red alloy wire switches states in multiplayer, it causes drastic increases in network usage. A timer hooked up to red alloy wire, jacketed wire, and bundled cable caused an additional half a megabit of traffic per person every time it changed states in three different tests. It's recommended to use redstone as much as possible, and have things such as timers directly adjacent to machines. Constant power does not affect network usage.
NOTE : The process can be reverted. Placing 4 Red Alloy Wires in an Alloy Furnace with fuel will convert the Red Alloy Wire back into Ingots at a 4:1 ratio