What Is SKALE (SKL)? How does SKALE work?

Join Camnang24h to learn about the project “What Is SKALE (SKL)? How does SKALE work? Who Are the Founders of SKALE Network? How staking SKL benefits the network ” through the article below. SKALE is made up of a potentially unlimited number of blockchains, called SKALE Chains. It operates in an integrated manner with the Ethereum blockchain. Developers can take advantage of Ethereum’s security by migrating their DApps to their own SKALE chain to achieve high throughput with zero gas fees.

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Introduction

Ever-increasing user and developer activity often pushes the speed and capacity limits of popular blockchains. At the same time, a frictionless user experience is vital for the blockchain community to create a Web3 integrated future. SKALE is one of the projects built to support the exponential growth of decentralized applications (DApps) on the Ethereum network.

What is SKALE?

SKALE is a modular layer 1 and layer 2 hybrid network made up of scalable, interconnected blockchains. It enables developers to migrate their projects from the Ethereum network onto one of the SKALE-administered blockchains to achieve high throughput with zero gas fees.

Founded in 2018 by Jack O’Holleran and Stan Kladko, SKALE was designed to improve the overall user experience in the blockchain space. Its vision is to make blockchain applications fast, easy, and free for all users.

Through its Ethereum Virtual Machine (EVM)-compatible blockchains, SKALE creates a fast, gas-free ecosystem to support the development of NFTs, games, DApps, and more.

What is the price of SKALE (SKL) today?

In this section one can follow the price and chart of SKALE (SKL) traded today via the chart below. If you want to know where to buy SKALE (SKL) at current rates, the top crypto exchanges to trade SKALE (SKL) securities are currently Binance, MEXC, Bitrue, Tapbit, and Bitget.

 

Who Are the Founders of SKALE Network?

SKALE Network was founded by Jack O’Holleran and Stan Kladko, both of whom have vast experience across the software industry.

O’Holleran — the co-founder and chief executive of SKALE — is a technology entrepreneur who specializes in blockchain and decentralized systems. He continues to hold a strategic advisor role at Aktana, the life sciences company he co-founded in 2008.

According to his LinkedIn profile, O’Holleran began the early stages of his career as an account executive at Good Technology. He spent two years there before joining Motorola’s business development and product strategy division.

Kladko spent many years obtaining a PhD in physics prior to co-founding SKALE, and worked for 16 years as a technology executive in San Francisco’s Silicon Valley.

He has co-founded several other companies, including Galactic Exchange and Cloudessa.

What Makes SKALE Network Unique?

SKALE Network is geared towards improving both security and decentralization of Ethereum-based apps.

Token holders on the SKALE Network are incentivized and earn rewards by helping to improve the scalability and security of the platform by serving as validators.

The SKALE Network was the first project to launch a token on ConsenSys Codefi’s Activate platform — which is “designed to launch decentralized networks and allow customers to purchase, manage and use their tokens — all in one application.” Activate was designed to create new standards for the distribution of utility tokens, and ensure that networks are fully usable as soon as tokens are sold. It’s hoped that this approach will help clean up the appearance of the initial coin offering sector, which has been susceptible to scams in recent years.

By launching a token that meets regulatory standards, SKALE is intending its token to be widely adopted and avoid any fraudulent activity.

Ethereum is typically slow to verify and authorize transactions. Using SKALE Network greatly improves the speed at which Ethereum verifies transactions as SKALE can operate much faster and run up to a maximum of 2,000 transactions per second per chain, according to the team.

How does SKALE work?

SKALE operates in an integrated manner with Ethereum while running its own consensus mechanism. This design takes advantage of ETH’s proof-of-stake (PoS) network and combines it with SKALE’s to offer high-speed, secure, and zero gas fee transactions. It also benefits Web3 and DeFi applications in terms of cost and performance, contributing to Ethereum’s ability to scale for mass adoption.

Multi-chain functionality

SKALE is a multi-chain network. There can be a potentially unlimited number of SKALE chains that can operate as independent blockchains that are interoperable and EVM-compatible. This means users can deploy their existing Ethereum-based smart contracts directly on SKALE chains and enjoy high throughput and low latency. Developers can also use SKALE chains to run smart contracts, decentralize storage, execute roll-up contracts, and much more.

SKALE has also modified the existing EVM functionality to allow for more smart contract use cases. For example, users can deploy SKALE chains with a FileStorage smart contract to store larger files, including websites, on network nodes. Interchain messaging also makes it possible to transfer tokens and NFTs across different SKALE chains.

On SKALE, each blockchain is highly configurable. Users can choose to have their own SKALE chain, consensus protocol, virtual machine, and additional security measures, according to their needs. They can also join a community chain instead of having their own SKALE chain. The network is expected to grow to support blockchains other than Ethereum in future.

To use a SKALE chain, developers need to pay a network subscription fee, which is delivered through a smart contract on Ethereum. The fees will be shared with validators and the SKALE community; this architecture is how SKALE can offer zero gas fees to end-users.

The SKALE network

SKALE utilizes a network of decentralized nodes to create a pooled security system. Each node provides resources to multiple SKALE chains — including storage, monitors, up-time and latency — and provides node owners with an interface to withdraw, deposit, stake, or claim the native utility token, SKL. Each SKALE chain added to the network can create more capacity while pooling security resources with the other sidechains.

The SKALE network consists of SKALE Manager and SKALE Nodes. SKALE Manager exists on the Ethereum mainnet as the entry point to all other smart contracts in the SKALE ecosystem, supporting the creation and destruction of SKALE chains.

SKALE Nodes are run by validators who stake a predetermined amount of SKL tokens on Ethereum and fulfill the network’s hardware requirements. Once admitted to the network, they can support one or more SKALE chains. SKALE Manager will randomly assign each node to a group of 16 peer validators to ensure decentralization. The peers will then audit the node’s up-time and latency. Based on their performance at the end of each network epoch, they will be rewarded with SKL tokens.

SKALE Nodes use a virtualized sub-node architecture to allow each node to run multiple SKALE chains simultaneously. The Virtualized Subnodes are designed to be dynamic in size to facilitate the network’s elasticity and are also responsible for running the SKALE EVM, SKALE consensus, and inter-chain communication.

What is SKL?

SKL is the native cryptocurrency and utility token of SKALE. It has a total supply of 4.27 billion tokens. SKL is an ERC-777 token that is backward-compatible with the ERC-20 standard. It supports token-level delegation, a secure way of non-custodial staking. Instead of locking funds in a smart contract, users can stake SKL with a delegation key from their wallets.

SKL is used for payments on the network, including SKALE chain subscriptions. Token holders can stake SKL as validators or delegators and earn rewards. As validators, they can run nodes to validate transactions, execute smart contracts, and secure the SKALE network. This earns them SKL rewards derived from SKALE chain subscriptions. If SKL holders choose to stake as delegators, they will only earn a portion of the validators’ rewards.

In addition, SKL gives token holders the right to participate in the governance of the SKALE network. Through on-chain voting, they can determine SKALE’s economic parameters and the direction of its future development.

How staking SKL benefits the network

Staking SKL tokens is a central aspect of SKALE network functionality.

To deploy a new SKALE chain, developers have to stake SKL on Ethereum mainnet, which deploys a new SKALE chain on which the DApp can function. The DApp’s SKL that is staked on mainnet will be rewarded to validators to confirm transactions on that chain and the validators are paid on a monthly basis.

Because the validators are paid in advance to produce blocks, end-users don’t have to compensate them, thus allowing end-users to enjoy zero gas fees.

Additionally, SKL token holders can stake and delegate SKL to validators who run nodes that help the SKALE Network function by validating blocks, executing smart contracts, and securing the network.

How to buy SKL on Binance?

You can buy the SKALE token (SKL) on cryptocurrency exchanges like Binance.

1. Login to your Binance account and click [Trade] – [Spot].

2. Search “SKL” to see the available trading pairs. We’ll use SKL/BUSD as an example.

3. Go to the [Spot] box and enter the amount of SKL you want to buy. In this example, we will use a market order. Click [Buy SKL] and the purchased tokens will be credited to your Spot Wallet.

Closing thoughts

As DApp usage increases, SKALE has the potential to grow exponentially with its dynamic multi-chain network. By offering high throughput, zero gas fees, and low transaction latency, SKALE could be a viable scaling solution to the Ethereum blockchain.

Disclaimer: Any information provided here including featured projects should not be considered investment or financial advice. Information is provided as-is without warranties. We cannot verify the claims or reliability of the projects listed. By using this information, Camnang24h only wants to provide information for your reference before deciding to invest, not advice. Self-study!

Source: Binance.com