What is the cryptocurrency SKALE (SKL) coin and how does it work?
The SKALE Network offers a solution to the congestion that occurs on the Ethereum network due to the high volume of developers using the platform for decentralized applications (DApp) development.
What is the SKALE Network (SKL)?
The SCALE Network is a Layer-2 scaling solution that creates a side-chain environment to eliminate slowness in the Ethereum network. It allows developers to host and develop decentralized applications on the network, while using SKALE elastic side chains instead of the Ethereum mainnet.
The Ethereum developer team is working on Ethereum 2.0 enhancements that will enable faster transactions and scaling for all Dapps, transactions, and smart contract transactions. As Ethereum moves from Proof of Work to the more efficient Proof of Stake protocol, SKALE represents a viable solution for scaling on the network in a way that justifies the project's name.
Users can define specific side chains to organize a suitable environment for creating Dapps by selecting the protocols, the size of the side chain used, the virtual machine, the main blockchain and security measures in order to create a configurable Elastic Chain for their Dapps.
Thus, the SKALE Network creates a highly scalable infrastructure that is interoperable and compatible with the Ethereum platform, creating a network of Elastic Side Chains for which Dapp developers pay a monthly subscription. Thanks to this type of infrastructure and the use of specific side chains, SKALE improves the performance of Dapps on the Ethereum network with low latency and high efficiency, while at the same time enabling faster transactions within the side chain ecosystem.
How Does the SKALE Network Work?
The most important element of the SKALE Network project is the use of Elastic Side Chains. Elastic Side Chains work as standalone blockchain systems that are integrated with another blockchain environment, in this case the Ethereum platform. These formations are called “Elastic Side Chains” because users can define side chains that are suitable for their needs. Developers can set the side chain they want to use for Dapps to fit certain specifications, so they can select consensus protocols, virtual machines, the main blockchain, and define the security protocol on the side chain.
Once the sidechain is defined, developers can pay monthly subscriptions to use sidechains to develop and host decentralized applications. Smart contracts on side chains communicate with the main network contracts, which shows how interoperability between the Ethereum platform and the SKALE side chains is established.Dec. Users can continue to access the Ethereum mainnet while using the elastic side chains.
SKALE can also process transactions through side chains, verify multiple transactions at the same time, and then send them back to Ethereum for batch verification. This is how SKALE helps speed up transactions during times of network congestion. SKALE side chains are also suitable for testing Dapps because the Dapp facing the main network will not be affected in the event of an error or crash.
Who are the Founders of SKALE Network? (History of the SCALE Network)
The SKALE Network officially launched in 2018 and was founded by Jack O'Holleran and Stan Kladko; both founders have experience in the field of blockchain and cryptography.
O'Holleran has a strong background in machine learning, blockchain technology and artificial intelligence, while Kladko has almost two decades of experience in the field of enterprise infrastructure technologies and cryptography. Stan Kladko is also one of the top contributors to the Ethereum Foundation and Ethereum research.
What Makes the SKALE Network Unique?
What makes the SKALE Network unique is that it can offer lower costs for the operation of Dapps during congestion on the Ethereum network, when GAS prices rise and the management and access of Dapps can become expensive. The uniqueness of the project is also reflected in the fact that SKALE offers a fast transaction for transactions by speeding up the verification process during times of heavy traffic on the platform.
SKALE also facilitates increased storage capacity and creates a scalable environment in which users can test new features without affecting the main network in the event of dysfunctions or errors. Faster processes, efficient scaling, fast production and low latency are the elements that make SCALE a unique and relevant project.
How Many SKALE Network (SKL) Coins Are in Circulation?
There are currently about 5 billion SKL in circulation. The SKALE Network has a limited total supply, which acts as an anti-inflation mechanism. Unless voted otherwise in the future through the decentralized governance model used in the SKALE Network, no new SKL will be printed after the total supply is exhausted. The maximum supply of SKALE is 7,000,000,000 SKL.
Multiplying the number of SKL coins in circulation and the current price of the SKALE Network in the market gives the market value of the SKALE Network. The market capitalization determines SKL's ranking compared to other cryptos on the market and also defines its Sunday share and dominance.
Other Technical Data
The SKALE Network uses nodes to support transactions and operations on the network, while the node ecosystem is divided into child nodes and Node Cores. Node Cores are responsible for overseeing the functions and operations of the nodes in the network and provide the interface for users to stake, deposit, withdraw and request SKL tokens. Child nodes are the things that give the network flexibility. The child nodes participate in the consensus mechanism functions, run the Ethereum Virtual Machine and are responsible for interoperability. The child nodes enable inter-chain communication through the interoperability function, which connects the side chains and the Ethereum network, Decoupling a network of side chains at the same time.
SKL is the utility token of the SKALE protocol and is multi-purpose; it allows users to pay for side chain subscriptions, access Dapps hosted on the network, make transactions, stake and participate in network management.
How can the SCALE Network be bought and sold?
While the SKL token is used for staking and a reward system that encourages verifier nodes, SKL can also be bought and sold on the market to make a profit.
