What is SKALE? All You Need to Know About SKL

What is SKALE?

SKALE is a decentralized network that aims to provide a scalable and secure infrastructure for the development and deployment of decentralized applications. The project seeks to address the scalability challenges faced by existing blockchain networks, such as Ethereum, by utilizing a unique sidechain technology that allows for high throughput and low transaction fees. With the increasing demand for decentralized applications, the need for scalable and secure infrastructure solutions has become more pressing than ever.

The SKALE Network is built on a unique sidechain technology that enables parallel processing of transactions and smart contracts, which allows for high throughput and low transaction fees. This makes it possible for developers to create decentralized applications that can handle a vast number of users and transactions, making them more accessible and usable for the mass market.

Understanding SKALE and its underlying technology is essential for anyone looking to develop, deploy, or invest in decentralized applications. In this article, we will provide an in-depth overview of the SKALE Network, including its history, main features, and the role of the SKL token. We will also analyze the potential for SKALE as a long-term investment and the risks associated with investing in this project.

History of SKALE (SKL)

SKALE was founded in 2018 by Jack O’Holleran, Stan Kladko, and Konstantin Richter. The founding team had extensive experience in blockchain, having worked at companies like Intel, Docker, and CyberMiles. They recognized the limitations of the Ethereum network, particularly its scalability issues, and sought to create a solution.

In April 2018, SKALE raised $10 million in a private token sale, followed by another $7.1 million in June 2018. The investors included big names in the blockchain industry, such as Multicoin Capital, Winklevoss Capital, and Galaxy Digital. The funds were used to develop and launch the SKALE network.

In 2019, SKALE raised $5 million in a seed funding round led by Floodgate, joined by Multicoin Capital, Aspect Ventures, and Blockchange Ventures. The funding was used to expand the development team and accelerate the mainnet launch, which happened in June 2020, making its elastic sidechain technology available to developers.

The mainnet launch was a significant milestone for the project, as it marked the transition from a testnet to a fully functional network. The launch was well-received by the blockchain community, and SKALE gained recognition for its innovative approach to scalability. Following the launch, SKALE’s native token, SKL, was listed on major cryptocurrency exchanges, including Binance and Coinbase. The listing helped increase the project’s visibility and attract more investors. Since then, the project has seen significant public acceptance, with a growing community of developers and investors recognizing its potential for revolutionizing the decentralized application ecosystem.

SKALE’s team continues to work on improving the network and expanding its capabilities. In January 2021, they announced a partnership with Chainlink to integrate its decentralized oracle technology, enabling SKALE dApps to access off-chain data securely. The partnership was a significant step towards making it more versatile and appealing to developers.

How does SKALE work? From Elastic Sidechains to the SNC Algorithm

Source: SKALE

SKALE works through a series of attributes that include flexible sidechain architecture, high security through validator staking, and a suite of developer tools to simplify the process of building and deploying decentralized applications on the platform. In the following sections, we will provide a more in-depth explanation of each of these features, highlighting their benefits and use cases.

Network Operations

SKALE Network consists of elastic sidechains, each with its own set of validators, nodes, and smart contracts. The validators on the network are responsible for verifying transactions and maintaining the network’s integrity. To become a validator, users must stake SKL tokens as collateral, which helps to ensure that validators have a stake in the network’s security and performance.

Elastic Sidechains

SKALE’s elastic sidechains are independent blockchains that are connected to the main Ethereum network, and designed to be highly scalable, customizable, and optimized for performance. They can be added or removed as needed to accommodate changes in network demand, providing a flexible and scalable solution to the problem of network congestion.

SKALE Network Consensus (SNC) Algorithm

SKALE uses a unique consensus algorithm known as SKALE Network Consensus (SNC) algorithm that enables the network to scale up to 2,000 nodes, making it one of the largest decentralized networks in existence. SNC allows for horizontal scaling, meaning that more sidechains can be added as demand increases.

Validator Management System

SKALE’s validator management system is a secure and decentralized system for managing sidechain validators, responsible for verifying transactions on the network and maintaining its integrity, also ensures that the network is secure and free from centralized control.

Smart Contract Execution

SKALE provides a scalable and efficient model for executing smart contracts faster, improving the overall performance of the dApps built on the platform.

The SKALE execution model seamlessly integrates with the Ethereum Virtual Machine (EVM), allowing smart contracts designed for the Ethereum mainnet to be effortlessly executed on the SKALE Network. There is no requirement to modify or transfer smart contracts; anything built for the EVM can be executed on the SKALE Network as well. This flexibility empowers developers to gradually transition to SKALE Chains, transferring smart contracts one by one based on specific needs and advantages.

Interoperability

SKALE is designed to be interoperable with other blockchains, enabling users to transfer assets and data across different networks. This feature is important for creating a more connected and decentralized ecosystem for applications.

Security and Decentralization

SKALE is committed to the security and decentralization of its network. The platform applies advanced security measures to protect against potential attacks, and its validator system ensures that the network is free from centralized control.

Developer Tools and Resources

SKALE provides a wide range of tools and resources for developers to build decentralized applications (dApps) on the platform. These include a software development kit (SDK), a user interface toolkit (UITK), and other resources to help developers build and deploy dApps more efficiently.

SKALE’s Main Features: BFT Consensus, Interchain Messaging and Node Monitoring

SKALE’s Main Features include several innovative solutions that make it a powerful blockchain platform. One of these features is the Byzantine Fault Tolerance (BFT) consensus mechanism, which is designed to ensure the security and reliability of the network, as well as allow it to continue operating even if some nodes fail or behave maliciously. This means that SKALE can withstand attacks and ensure that transactions are processed quickly and efficiently.

The Interchain Messaging feature enables seamless communication and data transfer between different blockchain networks, promoting interoperability and cross-chain functionality. It allows developers to securely exchange information and assets between SKALE Chains and other supported blockchains, enhancing scalability and expanding the possibilities for decentralized applications.

SKALE’s Node Monitoring feature ensures that the network is always performing optimally, by monitoring and optimizing node performance in real-time. This ensures that the network can handle high transaction volumes and provides a smooth user experience for dApp users.

Source: SKALE

LeaderLess BFT Consensus

Leaderless Byzantine Fault Tolerance (BFT) is a consensus algorithm used by SKALE to validate transactions on its network. In a leaderless BFT consensus, there is no fixed decisor. Instead, each node in the network plays an equal role in the consensus process. The nodes communicate with each other, and the consensus is reached through a series of rounds of communication and voting.

In SKALE’s implementation of leaderless BFT consensus, each node proposes a block, and the other nodes vote on whether to accept or reject it. The nodes repeat this process until a block is proposed that receives enough votes to be accepted. This consensus algorithm is designed to be highly fault-tolerant and can continue to function even if some network nodes fail or are compromised. BFT consensus helps ensure the security and reliability of the SKALE network.

Interchain Messaging

SKALE’s Interchain Messaging is a feature that enables communication and data transfer between different blockchain networks. It allows seamless interoperability between SKALE Chains and other blockchains, opening up possibilities for cross-chain applications and interactions. With Interchain Messaging, developers can establish secure and efficient communication channels, facilitating the exchange of data and assets across multiple blockchain networks.

Interchain Messaging utilizes Ethereum as a relay chain, leveraging its robust infrastructure and widespread adoption. SKALE Chains can send and receive messages to and from Ethereum and other supported blockchains. This functionality enhances scalability and flexibility, as applications can leverage different blockchains’ unique features and strengths while maintaining compatibility with Ethereum’s ecosystem.

Node Monitoring

Node Monitoring is a critical feature in the SKALE Network that helps ensure that the nodes are working correctly and efficiently, allowing validators to monitor nodes and take appropriate actions if they notice any anomalies in the network. This allows for real-time monitoring of the nodes, including CPU and memory usage, network connectivity, and uptime, which helps ensure that the nodes are always functioning optimally and helps prevent any network downtime.

Node Monitoring also allows automatic alerts and notifications to be sent to the SKALE Network validators in case of any node issues. This helps ensure that the validators can take immediate action to resolve any issues and prevent any network downtime. Additionally, Node Monitoring allows for performance metrics to be tracked and analyzed over time, helping identify trends and potential issues before they become critical. Overall, Node Monitoring is an essential feature of the SKALE Network that helps ensure the reliability and efficiency of the network.

Containerized Subnodes

Containerized subnodes are a key feature of SKALE that enables it to scale horizontally by allowing subnodes to run independently within their own containerized environments. This architecture ensures that subnodes are isolated from each other, making it easier to manage and maintain the network’s overall security and performance. Each subnode operates as a distinct unit, providing computational resources for the network’s applications and validating transactions.

SKALE’s containerization also enables seamless upgrades and bug fixes, as well as facilitates easy integration with other containerized systems. By leveraging this, SKALE can efficiently handle a high volume of transactions, while maintaining network security and stability.

Source: SKALE

What is the SKL Token?

The SKALE token (SKL) is an ERC-20 token that serves as the native currency of the SKALE Network. It plays an integral role in the network’s operations and serves several important functions within the SKALE ecosystem.

The primary purpose of the SKL token is to facilitate network operations, particularly with regard to validator staking, gas fees, and governance. Validators on the network are required to stake SKL tokens as collateral, which helps to ensure the network’s security and performance in exchange for rewards for their work, which are paid out in SKL. Users must also pay gas fees in SKL to execute smart contracts on the SKALE Network. These fees are used as an incentive for validators to process transactions and maintain the network’s integrity.

SKL holders have the right to vote on important decisions related to the network’s operations and development, such as upgrades, changes to network parameters, and funding proposals.

Token Utility

The SKALE token has several important use cases within the network, including:

• Staking: As mentioned earlier, users must stake SKL tokens to become validators on the network. Validators earn rewards for their work, which are paid out in SKL. \

• Gas Fees: Users must pay gas fees in SKL to execute smart contracts on the SKALE Network. These fees are used to incentivize validators to process transactions and maintain the network’s integrity. \

• Governance: SKL holders have the right to vote on important decisions related to the network’s operations and development, such as upgrades, changes to network parameters, and funding proposals.

Token Distribution

Source: SKALE Network

The total supply of SKL tokens is capped at 4 billion, with a circulating supply of around 2 billion. The tokens were distributed through several private and public sales rounds, with a significant portion reserved for network development and ecosystem growth.

The SKL token was distributed in two phases. The first was a private sale open to accredited investors and institutional buyers and raised $17.1 million, with the tokens priced at $0.10 each. The second phase was a public sale, which took place in October 2020 and raised an additional $5 million.

In total, 2 billion SKL tokens were minted, with 20% of these tokens allocated to the SKALE team and advisors, and 80% allocated for public distribution. The public allocation was distributed as follows: 10% to the SKALE Foundation, 5% to ecosystem development, 25% to validators, and 40% to community development and marketing. The remaining 10% was allocated for future partnerships and ecosystem growth.

Is SKALE (SKL) a Good Investment?

The SKALE Network has generated significant interest among investors and blockchain enthusiasts, thanks to its innovative approach to addressing decentralized applications’ scalability and security challenges. While no investment is without risk, several factors should be considered when evaluating the potential for SKL as an investment.

Network’s Growth Potential

With the increasing demand for decentralized applications, there is a growing need for scalable and secure infrastructure solutions. SKALE’s unique approach to sidechain technology has the potential to fill this gap and attract a significant user base. Additionally, the network’s partnerships with major players in the blockchain industry, such as ConsenSys and Huobi, provide a solid foundation for growth and development.

Development Team

The SKALE team’s strength and ability to execute the project’s roadmap. The team includes experienced blockchain developers, entrepreneurs, and advisors with a proven track record in the industry. They have already delivered several key milestones, including the launch of the main net, and have a clear roadmap for the future development of the network.

How to own SKL?

One way to own SKL is to go through a centralized crypto exchange. The first step is to create a Gate.io account and complete the KYC process. Once you have added funds to your account, check out the steps to buy SKL on the spot or derivatives market.

Take Action on SKL

Check out SKL price today and start trading your favorite currency pairs:

• SKL_USDT