What is SKALE
SKALE Network is a highly expandable elastic blockchain network in the Ethereum ecosystem. SKALE is described as an ‘Elastic Sidechain Network’ and is designed to create the optimal user experience by scaling and optimizing costs for NFT platforms. As an L2 scaling solution for Ethereum, SKL SKALE Network primarily aims to scale Solidity smart contracts and bring speed and configurability to the blockchain.
Also known as the Web3 Cloud, this open-source, high throughput, low latency, configurable byzantine fault-tolerant network was designed to scale Web3 apps. It allows Web3 apps to compete with traditional apps on a cost and performance basis.
SKALE blockchains (also called “dynamic shards”) are configurable and application-specific chains that exist one layer above the Ethereum blockchain. While SKALE allows builders to make use of Ethereum’s existing developer tools, it also offers developers to rent their own dApp specific blockchains – with faster block times, high-processing speed, and an Ethereum-compatible network. As a result, developers run Solidity smart contracts on SKALE’s elastic sidechains thousands of times faster at a fraction of the mainnet cost.
So, SKALE acts as a middle-ware layer which empowers dApp developers to speed up smart contract development and drastically increase transaction speed not only on Ethereum, but also on platforms such as EOS and other smart contract blockchain platforms.
SKALE Labs asserts that chains can run full-state smart contracts, support decentralized storage, execute rollup contracts (a layer-2scaling solution), and are EVM-compatible, i.e. run machine learning algorithms using the EVM (Ethereum Virtual Machine).
The scalable infrastructure of SKALE makes it possible to meet all of the customers’ expectations about speed, reliability, low cost, security, seamless interoperability with their apps, etc.
Jack O’Holleran (CEO) and Stan Kladko, both of whom have vast experience across the software industry, are the co-founders of SKALE Labs and the decentralized SKALE Network.
According to their plan and vision, however, SKALE Labs team is no longer the owners of the network. It has transitioned into the second phase when all assets relating to the SKALE Network are transferred to the NODE (The Network of Decentralized Economics) Foundation launched by the co-founders.
The transition ensures that SKALE remains open-sourced and run by a community of supporters. NODE’s mission is ensuring decentralization, community goals, and visions, as well as fostering a strong community of people and businesses to leverage and contribute to the SKALE network. The budget and resources of NODE are based on an allocated percentage of the total pool of SKL tokens. The Foundation is supported by a diverse set of Network Representatives, Validators, and Independents.
How Does Skale Work
Skale Network SKL is “an Ethereum-compatible network with a leaderless consensus designed to run on an uncapped number of independent nodes.” These nodes provide resources to multiple decentralized elastic blockchains. SKALE Network enables developers to run dApps in a decentralized modular cloud built for specific requirements. It allows users to select their chain’s size, consensus protocol, virtual machine, parent blockchain, and additional security measures via the simultaneous deployment of multiple highly configurable Elastic Sidechains. To create their Elastic Sidechain, users pay a monthly subscription fee in SKALE (SKL) tokens.
The SKALE token is a work and usage token which grants a right to participate as a network validator, stake as a delegator, or access a share of the network’s resources. Nodes must run the SKALE daemon and stake a predetermined amount of SKALE tokens on the Ethereum mainnet via a series of smart contracts known as the SKALE Manager in order to have the right to work in the network. 24 peer nodes will be randomly selected to audit the newly admitted node to the network. The new node’s uptime and latency will then be audited and submitted regularly to the 1 SKALE Manager for validator rewards. The node’s rewards will then get validated for participation in the network.
SKALE Network Security
The multichain network of SKALE is built to support an ever-expanding set of decentralized, high-performance Ethereum Native Blockchains. Skale Network’s emphasis on decentralization, however, doesn’t come at the expense of security. SKALE enables dApps to access independent app-specific chains secured by SKALE’s own validator set and, as independent blockchains, they are responsible for their security. Chains derive their security from the SKALE Manager contract, which is secured by a pool of randomly appointed and frequently rotated validators, i.e. ChorusOne, StakedUS, BisonTrails, etc.
In the event of a hack, there is no effect on the parent chain, but only the sidechain is vulnerable.
The SKL token meets regulatory standards, is widely adopted, and avoids any fraudulent activity.
The SKALE Network uses proof-of-stake (PoS) to ensure the network is secure.