What Is SKALE Network (SKL)?

SKALE Network is a Layer-2 scaling solution that creates a sidechain environment to relieve the congestion on the Ethereum network. It allows developers to host and develop decentralized applications on the network while using SKALE elastic sidechains instead of the Ethereum mainnet.

The Ethereum dev team is working on Ethereum 2.0 developments that should enable faster transactions and scaling for all Dapps, transactions, and smart contract operations. While Ethereum is transitioning from Proof of Work to the more efficient Proof of Stake protocol, SKALE represents a valid solution for scaling on the network, justifying the project’s name.

Users can define specific sidechains to arrange a suitable environment for creating Dapps by choosing protocols, the size of the sidechain in use, virtual machine, parent blockchain, and security measures to create a configurable Elastic Chain for their Dapps.

SKALE Network thus creates a highly scalable infrastructure that is interoperable and compatible with the Ethereum platform, forming a network of Elastic Sidechains that Dapp developers pay monthly subscriptions for. Thanks to the employment of such infrastructure and specific sidechains, SKALE improves the performance of Dapps on the Ethereum network with low latency and high throughput, while also enabling faster transactions within the ecosystem of sidechains.

How Does SKALE Network Work?

The centerpiece of the SKALE Network project is the use of Elastic Sidechains. Elastic Sidechains operate as independent blockchain systems that are integrated with another blockchain environment, in this case, the Ethereum platform. Users can define sidechains to fit their needs, which is why these formations are called “Elastic Sidechains”. Devs can adjust the sidechain they want to use for Dapps to fit certain specifications, so they can select consensus protocols, virtual machines, parent blockchain, and define the security protocol on the sidechain.

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Once the sidechain is defined, devs can pay monthly subscriptions to use sidechains for developing and hosting decentralized applications. Smart contracts on sidechains communicate with the mainnet contracts, which is how interoperability between the Ethereum platform and SKALE sidechains is established. While using elastic sidechains, users are still able to access the Ethereum mainnet.

SKALE can also execute transactions through sidechains, validating multiple transactions simultaneously then sending them back to Ethereum for bulk verification. That is how SKALE assists in speeding up transactions in times of network congestion. SKALE sidechains are also suitable for testing Dapps as the mainnet front-facing Dapp won’t be affected in the case of a bug or a crash.

Who Are the Founders of SKALE Network? (History of SKALE Network)

SKALE Network officially launched in 2018, and was founded by Jack O’Holleran and Stan Kladko, with both founders having experience in blockchain and cryptography.

O’Holleran has a strong background in machine learning, blockchain technology, and artificial intelligence, while Kladko has nearly two decades of experience in enterprise infrastructure technologies and cryptography. Stan Kladko is also one of the top contributors to the Ethereum Foundation and Ethereum research.

What Makes SKALE Network Unique?

What makes SKALE Network unique is its ability to offer reduced costs for operating Dapps during congestion on the Ethereum network, which is when the GAS prices rise and Dapps can become expensive to manage and access. The uniqueness of the project is also reflected in the fact that SKALE offers a fast throughput for transactions, speeding up the process of verification in times of high traffic on the platform.

SKALE also facilitates increased storage capacity and creates a scalable environment where users can test new features without affecting the mainnet in the case of dysfunctionalities or bugs. Faster transactions, effective scaling, fast throughput, and low latency are elements that make SKALE a unique and relevant project.

What Gives SKALE Network Value?

SKALE Network value is reflected in its technology, technical capacity, utility, and mainstream use and adoption. SKALE uses technology that employs Elastic Sidechains which users and devs can adjust to specifications that suit the development process for building specific Dapps. SKALE also draws its value from the fact that Ethereum still doesn’t have the necessary capacity to support high traffic rates on the network, increasing GAS prices during periods of congestion, which makes Dapp creation and hosting less sustainable.

The intrinsic value of SKALE is determined through its use cases and technology and often doesn’t match the market price of SKL. The market value of SKALE depends on the volatility which is characteristic of the cryptocurrency market, while it may also be affected by a multitude of factors that affect the SKL price. The price of SKL may be affected by factors such as the activity of the dev team, upgrades and updates, developments, mergers, new features, partnerships, and other important events. 

How Many SKALE Network (SKL) Coins Are in Circulation?

There are currently loading SKL in circulation. SKALE Network has a limited total supply, which acts as an anti-inflation mechanism. Unless it is voted otherwise in the future through the decentralized governance model used on the SKALE Network, no new SKL will be minted once the total supply is exhausted. SKALE’s max supply is loading.

The number of SKL coins in circulation multiplied by the current price of SKALE Network in the market gives the market cap of SKALE Network. The market cap determines the rank of SKL in comparison with the other cryptos in the market, and also defines its market share and dominance.

Other Technical Data

SKALE Network uses nodes to support transactions and operations on the network, while the ecosystem of nodes is divided into subnodes and Node Cores. Node Cores are in charge of overseeing the functions and operations of nodes on the network and provide the interface for users to stake, deposit, withdraw and claim SKL tokens. Subnodes are what give elasticity to the network. Subnodes participate in consensus mechanism functions, run the Ethereum Virtual Machine, and are in charge of interoperability. Subnodes enable interchain communication through the function of interoperability that connects sidechains and the Ethereum network, also creating a network of sidechains. 

SKL is the utility token of the SKALE protocol and is multi-purpose, allowing users to pay for sidechain subscriptions, get access to Dapps hosted on the network, make transactions, stake, and participate in network governance.

How is the SKALE Network Secured?

SKALE tokens (SKL) play an integral role in securing the SKALE Network. The network uses a pool validation model with node validators to ensure that small sets of nodes won’t be compromised as smaller sets are usually more susceptible to corruption.

The network is secured by a large number of validator nodes that work on different arbitrary assignments which are randomly assigned. The nodes in charge of validation are also automated to rotate frequently to enable top security while utilizing all resources that the network can offer.

To upgrade the overall security of the network, validator nodes need to stake a substantial amount of SKL tokens. Staked SKL is kept on the Ethereum network, within a special smart contract that is managed by the SKALE Manager. The smart contract in question monitors and regulates inflation of the token economy on SKALE Network and distributes payments to validators on a monthly basis as an incentive for validating nodes to secure the network by staking SKL.

How To Use SKALE Network?

SKALE Network is used by Dapp developers who often experience issues with Dapp functionalities, testing, creation, and transactions whenever the Ethereum network becomes congested. As Ethereum is yet to transition from the Proof of Work protocol to Proof of Stake which represents a more efficient protocol, SKALE relieves the problem of congestion by interconnecting with Ethereum through the use of Elastic Sidechains.

Developers can test Dapps without affecting the front-end on the mainnet and can easily switch to customizable sidechains with fast execution of transactions and functions for Dapp creation and testing when GAS prices skyrocket on Ethereum. The price of GAS on Ethereum can often make Dapp development too expensive, unsustainable and unprofitable, which is why SKALE makes a great alternative for Ethereum Dapp developers.

The SKL token is used for staking and for the reward system that incentivizes validator nodes, while SKL can also be traded in the market to generate profits.

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How To Choose a SKALE Network Wallet?

SKL is an ERC-777 token, which is fully backwards compatible with ERC-20 tokens and so can be stored in any wallet that supports Ethereum. The type you choose will likely depend on how much you need to store and what you intend to do with it.

Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of SKL for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of SKL or more novice users.

Online wallets or web wallets are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your SKL, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.

Kriptomat offers a secure storage solution, allowing you to both store and trade your SKL tokens without hassle. Storing your SKL with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling SKL, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

SKALE Network Proof of Stake

SKALE is a Proof of Stake protocol for scaling Dapps and transactions on the Ethereum network. Proof of Stake has proven to be one of the most efficient protocols used in blockchain-based environments, which is in part why SKALE is able to scale in such an effective manner.

SKALE tokens can’t be mined and the network doesn’t rely on the power of miners to validate transactions and secure the network. Instead, SKALE uses validator nodes who stake SKL tokens to pools.  

Conclusion

SKALE Network provides an effective way for Dapp developers to test, host, and create Dapps in a highly scalable environment where devs can adjust and customize sidechain specifications, making them elastic. Ethereum often experiences congestion problems, which is when the price of GAS can skyrocket, making Dapp development on Ethereum expensive and unsustainable.

SKALE Network solves this issue and assists Dapp developers in the creation, development, and testing of EVM-based decentralized applications while enabling fast transactions with lower fees.

Join the crypto revolution and start your SKALE Network journey today!

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SKALE Network FAQ

How Does Validating Work on the SKALE Network?

Validators must stake a minimum amount in order to register their node. They can either put up the entire amount themselves or accept delegation from other token holders and have the option to provide a commission rate to the delegators. The minimum lock-up period is 3 months and validators can choose to validate for 3 months, 6 months, or 12 months. They get paid every month and can withdraw their stake immediately after the validation period.

What Is ERC-777?

SKL is ERC-777, which is a token standard on the Ethereum blockchain that is fully backwards compatible with the better-known ERC-20 token standard. Ethereum ecosystem participants that already support ERC-20 can therefore also support ERC-777. ERC-777 is also important for SKALE’s staking and delegation system as it can be delegated directly from a wallet, whereas ERC-20 tokens would need to be sent to a delegation smart contract.

How To Buy SKALE Network?

Buying SKL is as easy as visiting Kriptomat’s how to buy SKALE Network page and choosing your preferred method of payment.

How To Sell SKALE Network?

If you already own SKL and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

SKALE Network Price

SKALE Network price is subject to frequent changes due to the high volatility in the cryptocurrency market. SKALE can be affected by a great number of factors, which is why SKL price can change radically within a short timeframe. You can check live SKALE prices on Kriptomat.

As well as traditional factors such as market sentiment, the flow of assets on exchanges, and the economy in general, the price of SKL is also affected by the amount of tokens being staked and the number of Dapps using the SKALE Network.

The current SKL price is loading EUR.

The 24-hour trading volume of SKL is loading EUR. SKL is currently ranked of all cryptocurrencies by total market cap, with a market cap of loading EUR. It has a circulating supply of loading and a max supply of loading.

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