SKALE is a Layer-2 Ethereum sidechain network that provides a high-throughput, low-latency, cost-effective environment for decentralized application (dApp) development

What is the SKALE Crypto Protocol?

The SKALE Network is a Layer-2 scaling solution for the Ethereum network. It enables developers to avoid congestion on the Ethereum mainnet by migrating development off of the main chain and onto SKALE-administered sidechains. SKALE allows for dApp deployment in a reliable, high-throughput, cost-effective environment through the use of independent, dApp-specific SKALE blockchains.

What Are Sidechains in the SKALE Network?

Sidechains are independent blockchains that integrate with their parent network or main chain. They utilize a two-way communications peg between the two networks to maintain smart contract communication, making them interoperable.

For example, a developer working on an Ethereum sidechain would retain access to the Ethereum mainnet and vice versa. The most common sidechain functionality involves batching network transactions and executing them on the sidechain before returning them to the main chain for final confirmation. This improves the speed and scalability of the main network.

SKALE Nodes and Elastic Sidechains

The SKALE Network utilizes a network of decentralized nodes to provide transactional activity on the network. SKALE’s nodal network is divided into Node Cores and subnodes. Each SKALE Node Core oversees node computation and storage resources, monitors uptime and latency, and provides node owners with an interface to withdraw, deposit, stake, or claim SKALE tokens.

Within these nodes, the SKALE crypto protocol deploys containerized subnode architecture. These virtualized subnodes are dynamic in size, which facilitates network elasticity. SKALE subnodes are also involved in consensus, run the Ethereum Virtual Machine (EVM), and facilitate interchain communications.

The SKALE Token: SKL Crypto Rewards

The SKALE Network provides services over a framework that integrates economic incentives and governance mechanisms using the SKL token.

The SKL token has four main functions on the SKALE Network:

Security and Staking: SKL token holders or delegators stake their tokens to validators. These validators operate the SKALE Network by verifying blocks, executing smart contracts, and securing the network. As validators, they receive SKL crypto rewards for their efforts.

Payment: Developers use SKL tokens to pay for Elastic Sidechain subscriptions.

Rewards: Both delegators and validators receive SKL crypto premiums derived from the subscription fees paid by developers and the inflation of tokens into the network.

SKALE allows for dApp deployment in a reliable, high-throughput, and cost-effective environment through the use of independent, dApp-specific SKALE blockchains.

References:

SKALE Crypto Network: SKALE Token & Ethereum dApps | Gemini. (n.d.). Retrieved from https://www.gemini.com/cryptopedia/skale-network-skl-coin-ethereum-dapps-skl-crypto

elegant_solution. (n.d.). Retrieved January 13, 2024, from https://www.freepik.com/author/user28432665

Freepik - Goodstudiominsk. (n.d.). Retrieved January 5, 2024, from https://www.freepik.com/author/goodstudiominsk

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