What is SKALE (SKL) Network, how does it work and why is it important for blockchain scalability?

What is SKALE Network (SKL)?

SKALE Network provides a Layer-2 scaling solution by establishing sidechains to alleviate congestion on the Ethereum network. Developers can build decentralized applications (Dapps) on SKALE's elastic sidechains instead of Ethereum's mainnet. As Ethereum progresses towards Ethereum 2.0 and transitions to Proof of Stake, SKALE offers a viable scaling option for Dapps, aligning with its purpose.

Users can customize sidechains by selecting protocols, size, virtual machines, parent blockchains, and security measures to create Elastic Chains tailored for their Dapps. This infrastructure enhances scalability on Ethereum, supporting faster transactions and improving Dapp performance with low latency and high throughput.

How does SKALE Network work?

At the heart of the SKALE Network project lies its utilization of Elastic Sidechains. These sidechains function as autonomous blockchain systems interconnected with the Ethereum platform. Known as "Elastic Sidechains," they can be customized by users to meet specific requirements. Developers have the flexibility to tailor sidechains for their Dapps by choosing consensus protocols, virtual machines, parent blockchains, and defining security protocols.

Once the sidechain is configured, developers can subscribe monthly to utilize it for developing and hosting decentralized applications (Dapps). Smart contracts deployed on these sidechains interact with mainnet contracts, ensuring interoperability between the Ethereum platform and SKALE's sidechains. Users retain access to the Ethereum mainnet while leveraging elastic sidechains.

SKALE facilitates transaction processing through sidechains by validating multiple transactions concurrently before bundling them for verification on Ethereum. This process accelerates transaction speeds during network congestion. SKALE sidechains are also conducive to Dapp testing, shielding mainnet-facing Dapps from bugs or crashes that may occur during development.

Who founded SKALE Network? (History of SKALE Network)

SKALE Network was officially launched in 2018 and established by Jack O’Holleran and Stan Kladko, both seasoned in blockchain and cryptography. O’Holleran brings expertise in machine learning, blockchain technology, and artificial intelligence, while Kladko boasts nearly two decades of experience in enterprise infrastructure technologies and cryptography. Kladko is also a prominent contributor to the Ethereum Foundation and Ethereum research efforts.

What sets SKALE Network apart from others?

SKALE Network stands out by providing cost-effective operation of decentralized applications (Dapps) during Ethereum network congestion, when GAS prices soar and Dapp management can become costly. It distinguishes itself with rapid transaction throughput, accelerating verification during peak platform traffic.

Additionally, SKALE enhances storage capacity and establishes a scalable environment for testing new features without impacting the mainnet in case of bugs or issues. Its emphasis on faster transactions, efficient scaling, high throughput, and minimal latency underscores SKALE's unique and impactful attributes.

What contributes to the value of SKALE Network?

The value of SKALE Network stems from its technology, technical capabilities, utility, and widespread adoption. SKALE employs Elastic Sidechains that users and developers can tailor to specific requirements for building Dapps efficiently. This flexibility is crucial as Ethereum currently lacks the capacity to handle high network traffic, leading to increased GAS prices during congestion, which hampers sustainable Dapp development and hosting.

The intrinsic value of SKALE is driven by its practical applications and technological advancements, often differing from the market price of SKL, its native token. Market valuation of SKALE is influenced by cryptocurrency market volatility and various factors affecting SKL prices, such as development team activities, upgrades, new features, partnerships, and significant industry events.

How many SKALE Network (SKL) coins are currently in circulation?

Currently, there are 5,179,144,337 SKL coins in circulation. SKALE Network operates with a limited total supply as a built-in anti-inflation measure. Unless altered through the decentralized governance model of SKALE Network in the future, no additional SKL will be minted once the total supply of 7,000,000,000 SKL is exhausted.

The market capitalization of SKALE Network is calculated by multiplying the number of SKL coins in circulation by the current market price of SKALE Network. This market cap determines SKL's ranking among other cryptocurrencies, as well as its market share and influence in the market.

Additional technical information

SKALE Network utilizes a node ecosystem to support transactions and operations, structured into subnodes and Node Cores. Node Cores oversee network functions and provide interfaces for users to manage SKL tokens through actions like staking, depositing, withdrawing, and claiming. Subnodes contribute to network elasticity, participating in consensus mechanisms, running the Ethereum Virtual Machine, and facilitating interoperability. They enable interchain communication, connecting sidechains and the Ethereum network to form a network of interconnected sidechains.

SKL serves as the utility token of the SKALE protocol, offering multiple functionalities. It allows users to pay for sidechain subscriptions, access Dapps hosted on the network, conduct transactions, stake tokens, and engage in network governance.

How does SKALE Network ensure security?

SKALE tokens (SKL) are essential for securing the SKALE Network. The network employs a pool validation model with node validators to prevent the vulnerability of small node sets to compromise.

Security is ensured through a large number of validator nodes assigned random and changing roles, maximizing network resources. Validator nodes must stake a significant amount of SKL tokens, which are held in a specialized Ethereum smart contract managed by the SKALE Manager. This contract oversees the token economy, controls inflation, and rewards validators monthly for securing the network through staking SKL tokens.

How can one utilize the SKALE Network?

SKALE Network is utilized by Dapp developers facing challenges such as functionality issues, testing, creation, and transaction delays during Ethereum network congestion. As Ethereum transitions from Proof of Work to Proof of Stake for improved efficiency, SKALE addresses congestion by integrating Elastic Sidechains with Ethereum.

Developers can conduct Dapp testing without impacting mainnet operations and seamlessly switch to customizable sidechains offering rapid transaction execution and functionality. This flexibility mitigates the high GAS prices on Ethereum that often render Dapp development costly and unsustainable, making SKALE an attractive alternative.

SKL tokens are used for staking and as rewards for validator nodes, incentivizing network security. Additionally, SKL can be traded on markets, offering potential profit opportunities.

How should one select a SKALE Network wallet?

SKL is an ERC-777 token, fully compatible with ERC-20 standards, allowing storage in any Ethereum-supporting wallet. Your choice will depend on storage needs and usage intentions.

Hardware wallets like Ledger or Trezor offer the highest security with offline storage and backup, ideal for larger SKL holdings but requiring technical expertise and higher costs.

Software wallets, available as smartphone or desktop apps, offer a free and user-friendly alternative. Custodial wallets manage and back up keys for you, while non-custodial wallets store keys securely on your device. They are less secure than hardware wallets but suitable for smaller SKL amounts or novice users.

Online wallets are accessible via web browsers, offering convenience but considered less secure. Choose reputable providers with strong security practices for holding smaller amounts or frequent trading.

Kriptomat provides secure storage and trading for SKL tokens with enterprise-grade security and ease of use, facilitating quick transactions and exchanges with other cryptocurrencies.

SKALE Network proof of stake

SKALE employs a Proof of Stake protocol to scale Dapps and transactions on the Ethereum network efficiently. Proof of Stake is recognized as one of the most effective protocols in blockchain environments, contributing to SKALE's scalability.

SKALE tokens cannot be mined, and the network does not depend on miners' computing power to validate transactions and ensure security. Instead, validator nodes stake SKL tokens into pools to participate in network validation and consensus processes.

In conclusion, SKALE Network offers a robust solution for Dapp developers to test, host, and develop decentralized applications in a scalable environment where sidechain specifications can be customized and adjusted, ensuring elasticity. Ethereum frequently encounters congestion issues, causing GAS prices to soar and rendering Dapp development costly and impractical.

SKALE Network resolves these challenges by supporting the creation, development, and testing of Ethereum Virtual Machine (EVM)-based Dapps, facilitating fast transactions with reduced fees.

Embark on your journey with SKALE Network today and become part of the cryptocurrency revolution!