SKALE proposes a Multichain network to tackle the congestion issue of Layer-1 blockchains. The scaling solution creates a configurable network of on-demand blockchains that support high-throughput, low-latency, and low-cost transactions. SKALE portrays a multichain future fueled by blockchain technology that everyone should look forward to.
It is no secret that Ethereum, though still dominating the blockchain field for operating smart contracts and dapps, faces its limits. This summer, Ethereum 2.0 will move from proof-of-work to proof-of-stake, promising users a faster, cheaper, and more energy-efficient future. However, rivals battle for Ethereum’s crown. Multichain solutions offer an effective way to solve the scaling problem of Ethereum even after the completion of Ethereum 2.0. Furthermore, these solutions aid the continuous scaling of Ethereum’s ecosystem.
With resilience and compatibility at its core, SKALE proposes a decentralized, configurable network of on-demand EVM compatible blockchains, essentially a Multichain Network. It enables high-throughput, low-cost, and low-latency on-chain activities. Additionally, the network uses the SKALE token to reward network validators and delegators, and allow developers to access resources on Elastic Sidechain.
What makes SKALE unique
SKALE Network offers an Ethereum native scaling solution, similar to layer-2’s but powered by a multichain environment to relieve the congestion on the existing Ethereum network. It provides dapp developers with a highly scalable infrastructure through a network of many SKALE Chains. More importantly, it is completely interoperable and compatible with Ethereum.
The SKALE Network is a highly expandable network characterized by security, scalability, and interoperability. Compared with other Layer-2 solutions, SKALE distinguishes itself by being able to support an ever-expanding ecosystem of app-specific and EVM compatible chains and hubs. For example, dapp-specific chains will make use of dedicated resources to fulfill the scenario-based needs of the developers. Compared to a shared chain, dapps don’t have to worry about spikes from other projects taking away their resources and slowing down compute and transaction times.
Notably, SKALE Network leverages a unique architecture, the containerized virtualized subnode architecture, that allows each node to run multiple Elastic SKALE chains simultaneously. The adoption of this particular architecture aims to bring enterprise-grade performance featuring elasticity, configurability, and modularity to dapp developers.
What are SKALE chains
SKALE Chains are independent blockchains that are compatible with their parent chains. The mission of SKALE chains is to reduce the congestion problem on Ethereum (a Layer-1 blockchain) in a gasless manner. And since they are independent, each SKALE chain has its own consensus mechanism. SKALE follows a proof-of-stake consensus mechanism, which is cheaper, faster, and more eco-friendly.
There is another critical design that makes the SKALE Network stand out. That is the design of the communication and working logic among the nodes in the network. Just like other blockchains, nodes perform tasks for computation and storage in the SKALE Network. These SKALE Chains operate in a fully decentralized way by using a group of virtualized subnodes selected from a subset of nodes in the network. In addition, these subnodes can partly or fully use each node’s computation and storage resources.
For instance, SKALE allows users to select SKALE chains starting with a minimum of 16 virtualized subnodes with each virtualized subnode either using 1/128 (small), 1/16 (medium), or 1/1 (large) of each node’s resources. The idea is to offer different sized chains that can fulfill a users’ different budgetary or throughput requirements.
After selecting the configuration, users just need to submit the payment to the SKALE Manager. The SKALE Manager exists on the Ethereum mainnet and serves as the entry point of all other smart contracts in the SKALE ecosystem.
SKL token facilitates SKALE’s ecosystem
The SKALE (SKL) token is an ERC-777 token that powers the SKALE Network. The SKL token grants a right to participate as a network validator, stake as a delegator, or access a share of the network’s resources as a developer to the token holders. The ERC-777 token is fully backward compatible with ERC-20, which means that it is supported by all participants adopting the ERC-20 token standard in the Ethereum ecosystem.
The SKL token facilitates the SKALE Network via these four main functions:
- Staking in the network. SKL token holders, or delegators, can stake their SKL tokens to validators who run the nodes. The nodes oversee the functioning of the SKALE Network by validating blocks, executing smart contracts, and securing the network.
- Payment method for SKALE Chain subscription fees. Developers can pay with SKL for a subscription for their own SKALE Chain.
- Rewards for validators and delegators. Rewards are accumulated monthly, based on fees paid by developers for chains and monthly inflation of tokens into the network.
- Governance and voting. SKL tokens will be used for on-chain voting, which will control all economic parameters of the SKALE Network.
Multichain scaling is an essential element to solve the scaling problem of Layer-1 blockchains like Ethereum. Thanks to SKALE Network, a compatible, configurable network of blockchains in which high throughput, low-cost, and low-latency transactions become a reality. In addition, developers can enjoy instant finality while integrating with SKALE and allow their end-users to access dapps with zero gas fees.
In the coming future, DappRadar will also integrate the Skale Network and its ecosystem of dapps to provide visitors with a comprehensive overview of the platform. Moreover, we will launch a series of in-depth articles to take a closer look at SKALE Network.
More about SKALE
Website
Whitepaper
Telegram
Discord
