What Is SKALE Network (SKL)?

SKALE Network is a network that aims to run an unlimited number of Ethereum-native secure, decentralized, high-performance blockchains. The SKALE Network was created to address the technical scalability, user experience, and cost challenges associated with decentralized networks like Ethereum. Additionally, SKALE is intended to provide developers with application-specific architecture, resulting in an increased scope of modularity and customization.

SKALE Network's architecture supports an expanding set of DApp-specific chains, which makes it quick and easy to set up cost-effective, high-performance blockchains that run Ethereum-compatible smart contracts. Smart contracts are just like regular contracts; however, instead of being drafted on paper, these contracts run in the form of protocols on the blockchain.

This network's initial major use case is elastic sidechains for the Ethereum blockchain. In this context, SKALE is referred to as an elastic sidechain network. A sidechain is a side blockchain connected to another blockchain (known as the main chain).

SKALE seeks to deliver Ethereum-as-a-service to developers. The platform aims to do so by providing a fee-less subscription-based decentralized network for the provisioning and deployment of high-throughput Ethereum virtual machine (EVM)–compatible and storage-enabled secure blockchains.

Some salient features of Skale Network are:

• Byzantine Fault Tolerance: Byzantine fault tolerance is the ability of a computer system to continue running even if some of its nodes fail or act maliciously. BFT, the distributed system security standard, ensures that the network can reach a consensus even if up to one-third of the members are malevolent.

• Asynchronous Protocol: There are no limitations or expectations imposed on how long it will take for a message to be delivered within the network in an asynchronous timing model. SKALE protocol recognizes node and network latencies, allowing messages to take an unlimited amount of time to deliver.

• Threshold Signatures: Threshold signatures are digital signatures in which signers can create groups in which only specified members of the group can make signatures on the group's behalf. BLS threshold signatures allow for efficient inter-blockchain communication while also promoting randomness in node allocation.

• Leaderless Consensus: Many existing decentralized/distributed consensus systems elect a leader for each round who proposes some data (a block) for the network to start consensus and reach an agreement on. The SKALE consensus system, on the other hand, establishes a mechanism in which any member can submit blocks and only those that receive a majority of signatures ("a threshold") are eligible to be accepted for prospective commitment to the blockchain. Leaderlessness reduces the likelihood of collusion among network participants by ensuring that each has an equal probability of successfully proposing and committing new blocks. 

Components: An important component of the SKALE ecosystem is the SKALE Manager. The SKALE Manager serves as the gateway to all other smart contracts in the SKALE ecosystem. Another component is the SKALE Protocol, a proof-of-stake network that encourages appropriate behavior amongst network members.

And lastly, the SKALE token is the native token of the platform that has hybrid uses. SKALE signifies the right to work in the network as a validator, stake as a delegator, or use a portion of the platform's resources as a developer by building and renting an elastic sidechain for a length of time. SKALE is an ERC777 token. ERC777 is an Ethereum-based token standard that is backward-compatible with the more widely used ERC20 standard, which means that all Ethereum apps that accept ERC20 can also support ERC777.

History of SKALE Network (SKL)

SKALE Network is a project initiated by NODE Foundation. The whitepaper of SKALE Network was published in July 2020. The founders of the network are Stan Kladko and Jack O'Holleran. O'Holleran is a technology entrepreneur who also founded a life-sciences company named Aktana. In contrast, Kladko holds a PhD in physics and has cofounded a few companies, including Cloudessa and Galactic Exchange.

How Are SKL Tokens Created?

The SKALE Network uses the proof-of-stake algorithm for staking every SKL token. The token holders can also delegate their tokens to any node in the ecosystem that has not been delegated or staked before. Users pay SKALE on a subscription basis to rent these resources (computation, storage, bandwidth) in the form of an elastic sidechain for a set period of time. Validators stake SKALE into the network, gaining the ability to run nodes and earn fees and tokens through inflation. Delegators can receive incentives by delegating their tokens to validators.

How Many SKALE Network (SKL) Tokens Are There?

SKALE Network has a maximum supply of 7 billion SKL tokens.