What problem does SKALE aim to solve?<\/span><\/strong><\/h2>\nTo increase adoption of Ethereum-based applications \u2013 and decentralized solutions in general \u2013 the industry needs to scale not just transaction throughput but also the user experience. Scaling the user experience means solving for transactions per second as well as solving for latency, connectivity to API-based wallets, cost-effectiveness, seamless messaging between chains, and much more. The SKALE Network is an integral solution to blockchain scaling which addresses speed, security, ecosystem interoperability, AND transactions per second. It is a configurable network of elastic sidechains that supports high-throughput and low-latency transactions without the high transaction costs found in public mainnets. The network offers expanded storage capabilities along with embedded connectivity and interchain messaging with the Ethereum mainnet. All of this is performed using a pooled transaction validation and security model that is efficient, scalable, and collusion-resistant. <\/span><\/p>\nThe primary benefits are near-zero gas costs, faster commit times, and increased transaction throughput. Faster commit times translate into lower latency, which allows for a better user experience. Reduced gas costs benefits both developers and users and removes friction to mass adoption. Elastic sidechains can also provide a significant amount of additional on-chain storage capacity for decentralized applications. Storing data on public chains is costly and limited whereas data storage within the SKALE Network is more extensive and economical thereby reducing the challenges app developers run into when addressing the storage needs of decentralized apps. Using an Execution Layer solution like the SKALE Network is highly effective for building and scaling Ethereum-based applications, opening up the potential for an ever-expanding spectrum of use cases \u2013 from games and decentralized finance to productivity and media applications and everything in between.<\/span><\/p>\nWhat makes SKALE unique?<\/span><\/strong><\/h2>\nThe SKALE Network offers a decentralized cloud for the provisioning and deployment of high-throughput low-latency elastic sidechains. These elastic sidechains are compatible with the Ethereum Virtual Machine (EVM) and offer configurable resource settings that include network size, transaction throughput, storage capacity, and enhanced security features. Elastic sidechains in the SKALE Network are operated by a group of virtualized subnodes selected from the larger set of nodes in the network. The sidechains use the node\u2019s computation and storage resources \u2013 ranging from a portion of the node resources to all of the resources depending on the size of the chain selected. Each chain makes use of an asynchronous byzantine fault tolerant protocol as its consensus mechanism and can message other chains via a secure interchain messaging protocol. In essence, the network can be viewed as a sophisticated container orchestration mechanism combined with a payment system \u2013 all in the service of running an elastic blockchain network. The SKALE protocol and a corresponding <\/span><\/p>\nSKALE token enable this powerful combination of processing potential with incentivized execution. Traditional sidechains gain performance and low latency by using a smaller number of validator nodes but at a potential risk to the transaction integrity (under the theory that smaller sets of nodes are more susceptible to collusion and bribery). The SKALE Network counteracts this security risk by using a pooled validation model. This model leverages the security advantages offered by a large number of validator nodes by combining random node assignments with frequent node rotation among the validator sets. Therefore, each independent sidechain is protected with the resources of the entire network. <\/span><\/p>\nTo further secure the network, each validator must stake a significant amount of value into the network via a SKALE token. Sidechains are also resourced and provisioned by users via a subscription modelthat also makes use of the SKALE token. These tokens are staked into the Ethereum mainnet and controlled by smart contracts there. Smart contracts on the mainnet also manage the token inflation and the monthly payouts to validators (including proceeds from the inflation). These smart contracts also handle the monitoring of node performance as well as the provision of penalties in the event of any malfeasance by a node. <\/span><\/p>\nThe SKALE Network is a custodial execution layer (Layer 2). Whereas non-custodial approaches use a system of fraud proofs to allow funds to move between chains, SKALE makes use of BLS signatures, deposit boxes within the Ethereum mainnet, and other mechanisms to allow for custodial ownership and use within the network (which allows it to leverage the security guarantees of the mainnet but gain the performance inherent in Layer 2). Whereas other Layer 2 models attempt to use mainnet interactions to run verification and\/or fraud proofs, SKALE uses the Ethereum mainnet for staking and for other critical operations in a way thatis better attuned for the creation of a robust and fully decentralized security and execution layer. The SKALE Network can also support non-custodial Layer 2 efforts via BLS Rollups and eventually will support other proven L2 solutions as they progress from research phase to production ready.<\/span><\/p>\nWhat is the SKALE Token?<\/span><\/strong><\/h2>\nThe SKALE Network token (SKL), is a hybrid use token which represents the right to work in the network as a validator, stake as a delegator, or access a share of its resources by deploying and renting an Elastic Sidechain or Elastic Blockchain for a period of time as a developer.\u00a0\u00a0<\/span><\/p>\nThe SKALE Network token serves as the built-in instrument of transfer for facilitating these four main functions:<\/span><\/p>\n\n- Security of and staking in the network.<\/span><\/strong>SKL token holders (delegators) stake their SKL tokens to validators who run nodes that make the SKALE network function by validating blocks, executing smart contracts, and securing the network. They are rewarded with SKL tokens for their efforts.<\/span><\/li>\n
- Payment method for SKALE Chain subscription fees.<\/span><\/strong>Developers purchase their subscription access to elastic blockchains (S-chains) using SKL tokens.<\/span><\/li>\n
- Rewards for validators and delegators staking their tokens<\/span><\/strong>. Rewards are accumulated monthly, based on fees paid by developers for chains and a monthly inflation of tokens into the network. \u00a0<\/span><\/li>\n
- Governance and voting.<\/span><\/strong>SKL tokens will be used for on-chain voting, which will control all economic parameters of the SKALE Network<\/span><\/li>\n<\/ul>\n[\/et_pb_text][et_pb_text _builder_version=”4.23.1″ _module_preset=”default” header_3_text_color=”#ff8f00″ header_3_font_size=”18px” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]\n
Skale development updates in 2023<\/h2>\n
Skale has made significant strides in 2023, focusing on technological advancements and updates to its network, enhancing its capabilities, and expanding its reach in the blockchain space. Here\u2019s an overview of the most important developments:<\/p>\n