SKALE, the Dark Horse in Game Public Chains in 2023, Empowering Developers and Users with Ultimate Cost-Effectiveness

In recent times, the gradual upgrade of Ethereum’s Constantinople has become the most mainstream narrative in the industry, leaving many old Ethereum sidechains and L1 projects somewhat overshadowed. However, the latter still has a more solid foundation in technical infrastructure and research investment, gaining higher recognition for its solutions among developers.

Amidst the noisy market trends, the long-established Ethereum sidechain project, SKALE Network, has been rediscovered by more discerning investors due to its outstanding performance. Its price and market cap have also experienced a certain degree of increase.

Recent Price Trends of SKL

Market data indicates that the token SKL of SKALE Network is currently trading at $0.09119, showing significant market momentum with a 39.97% increase in the past 24 hours. Over the last 7 days, SKL has experienced a surge of over 70%. Additionally, SKL’s Fully Diluted Valuation (FDV) has reached nearly $430 million, demonstrating a commendable performance. Most importantly, SKL has a trading volume of $184 million in the last 24 hours, indicating robust liquidity and trading activity.

In the following sections, we will provide readers with a comprehensive introduction to the technical advantages and ecosystem development status of SKALE Network. The aim is to deliver the most valuable information reference for users, and it does not constitute investment advice.

SKALE Network is an Ethereum sidechain project designed to create a smart contract service platform, assisting Ethereum DApps in acquiring more users at lower costs and better performance. SKALE Network is a modular blockchain network closely integrated with Ethereum, offering developers an efficient blockchain deployment environment without incurring high gas fees. This feature enables developers to deploy high-performance Ethereum Virtual Machine (EVM) compatible blockchains in minutes without compromising network security and decentralization.

Deployed game projects on the SKALE chain are ranking at the forefront of the industry.

Some noteworthy technical features of SKALE for users and developers include:

Near-Zero Gas Fees for Lower Costs:

1.One unique aspect of SKALE Network is its extremely low gas fees. Regardless of the network’s scale, as long as it remains below a specific threshold, gas fees are almost zero. This is in sharp contrast to the high gas fees on the current Ethereum mainnet, benefiting not only developers but also contributing to market expansion.

2.Random Node Selection and POS Consensus Mechanism for Decentralization and High Performance:

SKALE employs a POS-based consensus mechanism and enhances the decentralization of the network through random node selection and node rotation schemes. This means that validating nodes are not fixed but rotate based on a certain time pattern and randomness, ensuring high TPS while enhancing decentralization.

3.Virtual Subnodes and Containerized Validation Nodes:

In SKALE Network, each elastic sidechain is composed of a randomly assigned set of virtual subnodes running SKALE daemons and the SKALE consensus mechanism. This virtualized subnode structure allows nodes in the SKALE network to serve multiple sidechains simultaneously, deploying containerized subnode architectures on each node in the network.

4.Enhanced Transaction Security and Performance with BLS Rollups:

Each sidechain in SKALE Network supports BLS Rollups, an effective way to increase network throughput and reduce gas fees on the Ethereum mainnet. BLS Rollups compress the size of Ethereum transactions using an encryption algorithm called aggregated BLS signatures, providing a more efficient and secure way to utilize the SKALE network.

In terms of ecosystem development and funding, SKALE Network has made significant progress. The network has successfully launched a batch of dApps, established partnerships with multiple collaborators and validators, and gained support from top global validator platforms. On the funding side, SKALE Labs has successfully raised over $17.1 million, reflecting market recognition of its technology and future development potential. These achievements not only signify SKALE Network’s technological innovation in the blockchain field but also indicate its crucial position in the entire crypto-economic ecosystem.

The native digital currency of SKALE Network, the SKL token, is at the core of the entire SKALE ecosystem. As an ERC-20 token, SKL plays a crucial role in ensuring network operational efficiency and economic incentives between participants.

Use cases of the SKL token include:

1.Staking and Rewards:

Validators secure the network and enhance its performance by staking SKL tokens, receiving token rewards for their services.

2.Gas Fees:

Execution of smart contracts requires payment in SKL tokens as gas fees, incentivizing the work of validators.

3.Governance Participation:

SKL token holders participate in network decisions through voting, influencing the development direction of the network.

SKALE Network raised funds through a two-stage sale. The first stage, a private sale, attracted qualified investors and institutional buyers at a price of $0.10 per token, raising $17.1 million. The second stage, a public sale, took place in October 2020 and raised an additional $5 million.

The tokenomics of SKALE are designed with a total supply cap of 4 billion tokens, of which approximately 2 billion are already in circulation in the market. These tokens are distributed through multiple rounds of private and public sales, with the majority allocated to support network development and ecosystem construction. The specific SKL token allocation model is as follows:

Out of the 2 billion circulating tokens, 20% is allocated to the SKALE team and advisors, while the remaining 80% is used to support network operations and community development. This includes 10% for the SKALE Foundation, 5% for ecosystem development, 25% for validators, and 40% for community and marketing, with the remaining 10% reserved for future partners and ecosystem development.

Token Distribution Model for SKL

In addition, the token distribution includes strict lock-up periods and unlocking schedules to ensure the interests of long-term participants align with the network’s sustainable development. Tokens from SAFT rounds will be locked for 9 to 36 months, while team tokens will be locked for one year after the network release, followed by a 3-4 year unlocking period. Through this phased token management strategy, SKALE maintains the stability and health of its token economy.

Finally, the token’s inflation mechanism sets a decreasing reward plan for validators, aiming to reward validators at a rate of 9.3% in the first year and gradually reduce the reward percentage over the next six years. This design aims to balance long-term incentives with the stability of token value, providing support for the continuous development of the SKALE network. Through these strategies, SKALE Network establishes the cornerstone of its token economy and lays a solid foundation for the future growth of its ecosystem.

The latest CoinGecko report highlights that as of November 2023, SKALE stands at the forefront as the most active web3 gaming chain. The number of daily active addresses has reached 230,000, and SKALE’s zero-gas blockchain model significantly reduces the entry barriers for gamers, contributing to its high level of activity.

SKALE’s Ranking Among Gaming Blockchains

Despite holding a leading position in the GameFi sector, a notable finding in the report is that only 42% of SKALE’s total transaction volume comes from gaming. This highlights the diversity of dApps and user groups on the SKALE platform, covering areas ranging from gaming to artificial intelligence (AI), decentralized finance (DeFi), social networks, and decentralized personal identity (DePIN).

In 2022, SKALE Network announced the implementation of a $100 million ecosystem incentive program aimed at fostering developer activities on its platform. This program is not operated by a single entity but involves collaboration between various entities, including NODE Anstalt, SKALE DAO, and other non-profit organizations. The initial $5 million grant from SKALE will be invested in projects in the Play-to-Earn (P2E) gaming and metaverse sectors.

The momentum of growth in the SKALE ecosystem remains strong, with over 2.3 million active users in November, representing a 130% growth from October. Coupled with over 30 million transactions, SKALE ranks among the top 5 blockchains in terms of Active User Weeks (UAW) and transaction volume.

It’s noteworthy that SKALE’s technical features make it naturally suitable for deploying AI projects, and this year AI projects are experiencing significant growth. The recent increase in the asset price of SKL is likely related to the entry of numerous AI projects. Currently, the thriving and dynamic SKALE ecosystem is occupying a key position in the Web3 landscape.

SKALE’s unique blockchain architecture is particularly well-suited to overcome typical barriers that AI applications face in blockchain ecosystems, such as high gas fees, network congestion, and non-instant finality. The advantages of zero-cost transactions and instant settlement are beginning to attract dApps to join SKALE for AI-driven blockchain operations, ensuring that AI operates with the expected efficiency.

Here are some AI applications currently leveraging the advantages of SKALE:

1.Exorde: Utilizing the machine learning capabilities of the SKALE platform, Exorde efficiently and economically processes a vast amount of global public content, executing numerous on-chain URL requests.

2.Overlai: Recently announced platform built on SKALE, Overlai uses AI to protect creators’ content from plagiarism and prevent unwanted AI content scraping. Follow Overlai on Instagram for the latest updates.

3.Chirper: Positioned as the world’s first AI-only social network, Chirper.ai leverages SKALE to seamlessly transmit AI-generated content, simulating a social media environment.

In addition to AI, SKALE continues to attract blockchain games and DeFi platforms aiming to provide the best zero gas fee user experience. Here are some projects that have launched or announced they are building on SKALE:

1.DexGo: An augmented reality walk-to-earn game now live on SKALE, allowing users to earn rewards through a healthy lifestyle with zero gas fees.

2.Katana Inu: Focused on a fast-paced, seamless gaming experience, this multiplayer PC game is currently under construction on SKALE. Players will experience the thrill of gas-free and lightning-fast transactions!

3.Savvio: On a mission to make DeFi more accessible to everyone, Savvio sets a new standard for DeFi by introducing gamified features and zero gas fees through the construction of a dApp on SKALE.

4.Pixudi: Reimagining the chessboard game experience through the power of blockchain, Pixudi is now live on SKALE, offering players an immersive gaming experience.

5.Dirac.Finance: The DeFi protocol Dirac.Finance requires a blockchain with instant finality, fast transactions, and robust security. This is why the platform chose to build its institution-grade DeFi product on SKALE.

6.Cryptopia: A fully blockchain-based strategy RPG game, Cryptopia is bringing its game to SKALE to provide players with a seamless gaming experience and zero gas fees.

Looking ahead, the competition in the Web3 world will undoubtedly involve a comprehensive competition of various elements. However, the acquisition rate and activity level of downstream users directly determine the project’s lifecycle. After a comprehensive shift towards low barriers and high performance, the thriving ecosystem on SKALE’s blockchain directly indicates that market expectations are continuously rising. With the arrival of a new round of the crypto asset bull market, SKALE may bring more incremental value and innovative attempts to the entire industry, making it worth keeping an eye on.

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