SKALE (SKL) is an Ethereum token used to power the SKALE Network. The SKALE Network explains itself as “an Ethereum Native network with a leaderless consensus planned to run on an uncapped number of independent nodes.”
SKL is the token that is used to power the SKALE Network. The nodes that make up the Skale Network are responsible for distributing resources to the various distributed modular blockchains.
The SKL token bestows the right to take part in the network as a validator, stake as a delegator, or access a portion of the network’s resources as a developer on the holder.
The SKALE Network is a Layer-2 scaling solution that alleviates the Ethereum network’s congestion by generating a sidechain environment.
It allows programmers to host and develop decentralized applications on the network while using SKALE elastic sidechains rather than the Ethereum mainnet.
The development team for Ethereum is currently working on developments for Ethereum 2.0. These developments should enable faster transfers and scale for all decentralized applications (Dapps), transactions, and operations involving smart contracts.
Even though Ethereum is moving away from the Proof of Work protocol and toward the more effective Proof of Stake protocol, SKALE represents a viable solution for scaling on the Ethereum network, which justifies the name of the project.
Users can define specific sidechains to set up an environment that is conducive to the creation of Dapps.
This can be accomplished by selecting protocols, the size of the sidechain currently in use, a virtual machine, the blockchain that is the parent chain, and various security measures to create a configurable Elastic Chain for their Dapps.
A highly scalable facility that is interoperable and consistent with the Ethereum platform is created by SKALE Network. This infrastructure forms a network of Elastic Sidechains for which Dapp developers pay monthly subscription fees.
SKALE enhances the performance of decentralized applications (Dapps) on the Ethereum network with low latency and throughput thanks to employing such infrastructure and specific sidechains. This enables SKALE also to enable faster processing within the ecosphere of sidechains.
By way of the Skale sidechains, Dapps can be created and developed on the Ethereum platform without competing for resource access with other Dapps currently in use. This will allow Dapps to operate in an optimized environment for their specific purpose, resulting in significant savings for users and developers.
SKALE Network is a blockchain-agnostic infrastructure that allows decentralized applications (DApps) to be deployed without worrying about the blockchain they are being deployed on.
It is an infrastructure that allows users to create and run applications on the Ethereum network, the largest public blockchain in terms of market capitalization.
The SKALE Network increases Ethereum’s scalability while reducing the load on its blockchain. As a result, validators will be capable of performing thousands of transactions per second generated by the SKALE sidechains that have been successfully deployed onto the Ethereum mainnet.
The SKALE Network comprises these sidechains and a specific set of nodes responsible for running operations within the network.
Features of Skale Network:
Byzantine Fault Tolerance: Byzantine fault tolerance is a method for accomplishing consensus within a given set of nodes. This is accomplished by allowing nodes to wait until at least two agree on the same order to represent transactions.
Off-chain Computation: Skale Network takes place off-chain and is yet still capable of communicating with the Ethereum mainnet in real-time. This allows sidechains that Skale manages to process DApp transactions quickly.
Sharding: Sharding is a process that allows transactions to be distributed among various nodes. This allows the blockchain to process large transactions without clogging the network. Skale Network employs this feature in its consensus protocol.
SKALE Team: The team behind Skale Network is composed of many experienced developers and engineers who have contributed to notable projects, including Bitcoin, Ethereum, Augur, etc.
Threshold Signatures: This security measure prevents a single private key from being compromised. It does this by requiring multiple people to sign transactions on the same account for them to be valid.
Leaderless Consensus: This is a method for achieving consensus within a group of nodes. No node can be declared as a group’s leader in this setting. Instead, all nodes are considered equal and can participate in the system to achieve consensus.
As SKALE Network stands to fundamentally change the way that transactions are processed within the ecosystem, Dapp developers need to be aware of how this new blockchain protocol will allow them to develop and deploy applications on Ethereum Network.
The SKALE Network is the solution many Ethereum users have been waiting for; however, this does not mean it is perfect.
Many of the features and functions of the Skale Network are still under development. This means some risks are still associated with investing in the platform and possible security breaches.
The SKALE Network will provide an effective platform for developing decentralized applications (Dapps), but it might not be able to meet the high expectations of Dapp developers for several reasons.
How Are SKL Tokens Created?
While other cryptocurrencies and blockchains have used the ERC-20 standard to issue tokens in their ecosystem, SKALE Network’s tokens are unique.
This can be attributed to SKL Tokens not being created on the Ethereum network, as with most other tokens. Instead, they are created on a sidechain of the SKALE Network formed by a group of nodes that run specific operations within the network.
The SKALE Network utilizes the algorithm known as proof-of-stake to stake each SKL token. The tokens holders can delegate their tokens to any node in the ecosystem that has not previously had tokens staked or delegated to it.
Users rent these resources (computing power, storage space, and bandwidth) as a flexible sidechain from SKALE for a predetermined amount of time by purchasing a subscription to the SKALE platform.
Validators invest SKALE into the network, which grants them the ability to operate nodes and earn service charges and tokens through inflation. Validators also receive SKALE in return for their investments. In exchange for delegating their tokens to validators, delegators are eligible to receive incentives.
For example, Validators need to stake SKL to operate nodes for the amount of time an individual chooses. They receive the same amount of SKL tokens as they staked.
The validators who are not able or willing to stake their own tokens will be selected by the SKALE consensus algorithm and will be provided with a certain percentage of coins from the rewards received from staking, every month.
Key Attributes of SKALE Network
Ethereum Native: The SKALE Network has been created to be compatible with Ethereum’s blockchain, which means it can support various decentralized applications on the Ethereum network.
Off-chain Computation: The network can store data and run computations off-chain while communicating with the mainnet in real-time.
Sharding: Sharding is used by the protocol to divide nodes into several groups which process transactions independently but remain in sync with one another.
Linear Scaling: Linear scaling is a method of increasing performance by adding new nodes that do not increase the number of hops for communication between them.
Leaderless Consensus: Another mechanism for achieving consensus that does not require any individual nodes to be appointed as leaders in this network
Collusion-Resistant: Nodes within a shard cannot communicate with one another, which means that they cannot conspire.
Encryption: Encryption is used for securing the proof-of-work and DApp interactions on their mainnet.
Eco-Friendly: The proof-of-stake requirements for validators are handled in a way that does not require much electricity to generate.
SKALE Network Tokens: SKALE is an ERC-20 utility token used as the primary unit of payment within the ecosystem and is the fuel of computation. It allows the holder to rent resources from SKALE Network and earn service fees, interest rates and staking rewards on behalf of delegators. SKALE tokens are not mined
On-chain File Storage: The SKALE Network has a system in place that enables on-chain file storage. A file can be stored on the SKALE network and accessed when requested by any party in the ecosystem.
SKALE Network Team: The team behind Skale Network consists of many experienced developers and engineers who have contributed to several notable projects including Bi,tcoin, Ethereum, Augur, etc.
Instant Finality: The first-to-update coins in the SKALE network are rewarded with grantees. This ensures that all users get access to the latest data version.
Cooldown Time: Returns are calculated depending on the time elapsed from the finish of a validator’s staking period. The time during which a validator is no longer entitled to receive service fees and rewards for their contribution as a node can be found in their “Cooldown Time” settings.
How Does SKALE Network Work?
The Skale Network is an off-chain scaling network that connects Ethereum sidechains and the mainnet. The main functions of the network are:
- Process transactions from Ethereum’s mainnet to Ethereum’s sidechains and vice versa;
- Store data on side chains by communicating with them directly; and
- Offer Skale as a platform for developers to build, test, and deploy Dapps. Infrastructure costs for applications may be reduced through a number of methods including scaling and sharding of nodes.
The Skale Network is built on the Ethereum platform and can offer its Dapp services to the users of all other applications but will be compensated for by transaction, data storage, and computational fees. The network’s computing element is responsible for promptly executing every Dapp request from a user’s sidechain.
In real-time, the sidechain communicates with the mainnet to identify transactions and execute smart contracts. Therefore, any scalability improvements may be implemented effectively and easily.
The utilization of flexible sidechains is the primary focus of the project that the SKALE Network is undertaking. Elastic Sidechains are decentralized blockchain environments incorporated into another blockchain ecosystem, specifically the Ethereum platform.
These environments are known as sidechains. The fact that users can define sidechains to suit their requirements is one of the reasons why these formations are referred to as “Elastic Sidechains.”
Developers can modify the sidechain they plan to use for decentralized applications (Dapps) to conform to a particular set of requirements. This enables them to select consensus mechanisms, virtual machines, and parent blockchains and define the sidechain’s security procedures.
The SKALE Network ecosystem comprises four main components:
SKALE Network Payment: The SKALE Network is the payment network used to execute and process transactions between the network and sidechain.
Sidechains of the parent chain: The sidechains are established with an Ethereum smart contract on the Ethereum blockchain.
These sidechains can be a foundation for deploying decentralized applications (Dapps).
The Elasticell: This elastic blockchain is an extension of the Ethereum mainnet and Ethereum sidechain. It is a personal sidechain that can be changed at any time.
SKALE Network Tokens: SKALE tokens (SKALE) are the primary payment unit within the SKALE Network ecosystem. It is also used to pay for computational and storage costs incurred when creating and maintaining smart contracts on your sidechain.
Therefore, the SKALE Network provides developers with a platform to build, test, and deploy decentralized applications. They can do this by using the mainnet as a cost-effective on-demand service.
The network also allows applications to be modified anytime to reflect a developer’s specific requirements.
What Makes SKALE Network Unique?
The service offered by the SKALE Network is a plug-and-play scalability solution for the Ethereum smart contracts. The fact that this platform can be used to execute Dapps on sidechains of the parent chain without making updates to the mainnet makes it a welcome development for all.
The technology that powers the platform is also open-sourced. This enables developers to use it in other blockchain-based applications.
The ability of SKALE Network to offer cost reductions for operating decentralized applications (Dapps) during congestion on the Ethereum network is what sets it apart from other networks.
Congestion is the time of day when GAS prices rise, and Dapps can become expensive and accessible.
SKALE provides a high throughput for transactions, which speeds up the verification process even during periods of high traffic on the platform, is another facet of the project’s distinctiveness that reflects its one-of-a-kind status.
In addition, SKALE makes it possible to increase storage capacity and creates a scalable environment in which users can test new features without negatively impacting the functioning of the mainnet in the event, there are any malfunctions or bugs.
SKALE is an innovative and important project because of its ability to facilitate faster transactions, effective scaling, rapid throughput, and low latency.
How is the SKALE Network Secured?
The SKALE Network has its own Layer 1 blockchain. It utilizes a virtual mining algorithm that can communicate with the Ethereum mainnet. This solution is ideal for developers who want to deploy Dapps on the platform in a secure and reliable environment.
The PoA algorithm enables validators to produce blocks and compete with each other to ensure they receive rewards. PoA is a consensus mechanism that focuses on security with the provided benefit of lower costs.
This means there are fewer validation costs, which translates into lower transaction fees for developers who choose this platform to deploy their applications.
The SKALE Network has a governance system that allows the network to self-sustain and evolve in a predictable and controlled manner while maintaining decentralization. SKALE tokens, also known as SKL, are an essential component of the SKALE Network’s security protocol.
The network employs a pool validation prototype with node validators to ensure that small sets of nodes will not be compromised. This is necessary given that smaller sets are typically more prone to corruption than larger sets.
The network is protected by many validator nodes, each working on a unique set of random arbitrary assignments.
To maintain the highest level of safety while fully using the resources the network has to offer, the nodes responsible for validation are automated so that they rotate frequently.
Validator nodes must stake a significant amount of SKL tokens to increase network security. The SKL that has been staked is stored on the Ethereum network within a one-of-a-kind smart contract that the SKALE Manager oversees.
As a reward for validating nodes to keep the network secure by staking SKL, the smart contract monitors devices and regulates the inflation of the reward system on the SKALE Network. It also distributes payments to verifiers every month.
How To Use SKALE Network?
SKALE is an innovative project with several new and exciting features that make it stand out from the rest. It is an ideal platform for developers who want to deploy Dapps on the Ethereum blockchain.
With this in mind, it is designed to help develop apps and devices safely, securely, and cost-effectively. There are two main ways to use the SKALE Network: deploying your sidechain or using it as a service on the sidechains of others.
Deploying your SKALE sidechain: This is the most straightforward way for developers to deploy Dapps on the SKALE Network. The process involves developing a smart contract, which can then be deployed using the SKALE CLI or SDK.
When deploying a smart contract via the SDK, developers will also be able to leverage off-chain functionality and scale in and out of their existing SKALE sidechains.
The SKALE Network provides developers with a useful platform to complete the development of Dapps on the Ethereum mainnet.
The fact that this platform can be used to execute Dapps on sidechains of the parent chain without making updates to the mainnet makes it a welcome development for all.
The technology that powers the platform is also open-sourced. This enables developers to use it in other blockchain-based applications such as IoT.
The development of the SKALE Network has been made possible due to an alliance of several experts from various backgrounds, including blockchain, computer science, and engineering.
The network is open-sourced and decentralized, a revolutionary approach to scaling that has never been seen before.
The SKALE Network also has an effective governance system in place. This ensures that the network will continue to evolve as it continues to expand and scale and that the technology underlying it will remain stable.
This makes this platform ideal for developers who want to develop Dapps on the Ethereum blockchain or for anyone who wants to use this technology as a base layer for their projects.