SKALE-in BLOCKCHAIN TECHNOLOGY
EN10
Data is simply processed information, the world is currently in an age of information, and data is the new oil. Almost every human communication and relationship is going digital, the internet is an interconnection of devices sharing data.
Businesses strive to gain an online presence, websites as well as applications of different organizations collect, store, and analyze user data to match certain user profiles to their interests and preferences.
However, these organizations use centralized platforms for their data management and have become targets of hacking attacks. These centralized systems can also experience significant downtime which can have a negative impact. Some examples of the Twitter hack of well-known personalities and celebrities accounts that occurred in 2020. Also, Google and Telegram experienced downtime on different occasions last year, albeit for a short.
These are just a few notable examples of centralized systems' drawbacks, many other examples happened outside the public eye. This coupled with mismanagement of data and misappropriation of authority by centralized systems calls for the need for a decentralized and more secure way of handling data.
The solution to this problem is blockchain technology which is one of the greatest inventions of the human race after the internet. Blockchain allows peer-to-peer sharing of data in a decentralized and secure manner without the intervention of third parties. Shared information is also encrypted increasing security and giving users privacy.
The Bitcoin blockchain was the first implementation of blockchain technology. Created by Satoshi Nakamoto in 2009, now twelve years after bitcoin is revolutionizing the financial markets. Praised as the best performing asset of the past decade, the cryptocurrency has begun the new decade with a blast. Currently priced above $30,000 which is ten times its low of last year. Bitcoin has gained the attention of institutional investors who are now buying at rates to cover up their previous negligence of this piece of technology.
Bitcoin was created as a cryptocurrency to give people financial inclusion, however, Vitalik Buterin saw the potential of blockchain technology was far beyond the capability of Bitcoin. He went ahead to build another blockchain with smart contracts feature. Smart contracts allow programming on the blockchain to carry out commands automatically once a set of specified conditions are met. This increased the use case of blockchain technology, not only confined to cryptocurrency but developers could now build decentralized applications allowing data to be shared securely.
However, these first generation blockchains also had their drawback, “scalability”. Bitcoin price a better alternative to Fiat takes longer to confirm transactions. The slow transaction time makes it unsuitable for day to day transactions. This has led to it acting more as a store of value, a digital substitute for gold. For ethereum, transaction speed can be increased by increasing the transaction fees to incentivize miners. This has increased the cost of you send the blockchain for both developers and other users.
Despite the International interest in cryptocurrency, blockchain has not gained the mass adoption it deserves compared to centralized systems due to these drawbacks. Different blockchain solutions have been proposed and implemented by different blockchains since then but none has been able to achieve full decentralization, security, and scalability all at once until SKALE.
WHAT IS SKALE?
SKALE network offers an open-source, elastic, and decentralized blockchain network that supports side chains, storage chains, and other subchains. This elastic chain network is connected and compatible with the ethereum mainnet. Similar to websites having their different servers on web2, SKALE is a web3 cloud that provides a rental service for developers to have their blockchains. The network aims to improve decentralization, security, and scalability.
The SKALE network has two major components;
- Elastic Sidechains
- Validator Nodes
Elastic SideChains:
Developers can create their blockchain specific for their application. They choose chain size, consensus protocol, virtual machine, print blockchain, and additional security measures.
Each Sidechain is compatible with the ethereum mainnet developers can use the same tools including writing contracts and solidity which is Ethereum’s programming language. However, the SKALE network provides scalability which interprets as faster transaction time and lower transaction fees which advantageous to both developers and users as well as bolstering the Ethereum ecosystem.
The developers can modify the sidechain easily and even resize from a small chain size with limited features to a large chain with higher transaction speed and more storage capacity. Just as the elastic side chains are created they can also be destroyed when the developer’s deposit for rental resources has been exhausted or the side chain has been flagged.
A developer will be notified before the destruction of the elastic side and rent can be renewed by making deposits to the network in form of SKL Token which is the native token of the SKALE network.
Validator Nodes:
This comprises nodes that provide an added security layer to the network of side chains. The nodes are containerized and virtualize to use resources efficiently. This means that a note can participate in the validation of transactions on different chains at the same time.
When developers create their side chains random number of nodes are assigned to each chain. The default number is 16 nodes but developers will be able to choose a SKALE network evolves. Each side chain can use a portion of each of its assigned node’s resources. For small chains, it is 1/128, for medium sized chains it is 1/8 and 1/1 for large chains. Implying that each node on the SKALE network can be subdivided (containerized) into 128 subnodes that participate in the validation process of different elastic chains.
The nodes use a pooled validation and security model which provides extra security on the system as the nodes for each elastic chain are randomly rotated. The SKALE network also uses a conceptual proof-of-stake system in which each node has to stake a predetermined amount of SKL token to participate. The stake of a node is slashed if it acts maliciously and the nodes are monitored in a peer review system, each node is paired to monitor 24 other node’s uptime and latency. The feedback is logged to the ethereum mainnet and used to reward or slash nodes based on performance.
KEY FEATURES OF SKALE NETWORK
SKALE aims to increase the scalability of blockchain technology thereby facilitate faster and wider spread mass adoption. Tech Giants that use centralized systems leave individuals with little or no choice but to share their data. The need for decentralized solutions is evident in the proliferation of DEFI products.
SKALE network lifts the scalability hurdle that acts as a major barrier to developers from building alternative decentralized solutions, as well as a barrier to market entry by investors and individuals alike.
The following are some unique features by which SKALE achieves its aim:
- Zero to Near Zero Gas Fees
- Ethereum Interoperability
- Token and Common Wallet Support
Zero to Near-zero Gas Fees:
A major obstacle on the ethereum blockchain is costly gas fees paid to process transactions quicker. There are Scenarios that gas fees exceed the value of transactions being made. However, SKALE network boasts zero transaction fees up to a particular threshold. This opens up blockchain technology to newer markets as it becomes more cost-effective.
Ethereum Interoperability:
The elastic side chains on SKALE network are interoperable with the ethereum mainnet. This includes programming using solidity, smart contracts can also be migrated directly from the ethereum mainnet onto the elastic side chains without the need to rewrite the smart contracts.
This provides an easy infrastructure for decentralized applications, tokens, and other products on the ethereum mainnet to move to a more scalable option without having to leave ethereum’s robust ecosystem.
Token and Common Wallet Support:
The SKALE network supports all major ethereum token standards including ETH, ERC-20, ERC-721, ERC-777, and DAI as well as common wallets and browser plug-ins like Metamask, Portis, and Bitsiki just to mention a few. This means that developers and users have nothing to worry about as their digital assets are completely safe.
More details about technical aspects of SKALE network can be found here https://skale.network/highlights
USE CASES FOR SKALE ELASTIC SIDECHAINS
In lifting the barriers to scalability, while adding layers of decentralization and security to already existing blockchain infrastructure. SKALE network increases the possible use cases of blockchain technology and opens it to newer markets and investors.
Some possible use cases of the elastic side chains on SKALE network are:
Decentralized finance:
Creating a trustless ecosystem to bring about financial inclusion for services such as trading, lending, investing, saving, etc
Games:
Different types of games can be built on the scale elastic side chains in which players don’t necessarily share personal data but can still enjoy full features like buying or selling collectibles, earning points that can be converted to rewards, etc
Media:
These days users are forced to watch advertisements as there are little-to-no alternatives. Blockchain base social media or websites can be built which are censorship-resistant and have permission ads.
There are so many other use cases of blockchain technology and the scalability provided by the SKALE network increases them to include but not only; digital identity, the internet of things, voting, Healthcare, real estate, charity, etc.
SKALE TEAM, PARTNERS and VALIDATORS
SKALE network is a project by N.O.D.E. (Network of Decentralized Economics) foundation based in Liechtenstein. The foundation aims to advance web3 and increase decentralization. The N.O.D.E. foundation is in partnership with SKALE labs and other investors to facilitate the development of SKALE network.
SKALE Labs has its headquarter in San Francisco, California and it is the core team involved in the creation of the technology and codes on which SKALE network operates. They are also involved in growing the use case of SKALE network. The team is led by Stan Kladko (CTO) and Jack O’Halloran (CEO) who are both co-founders.
SKALE network already boasts a vibrant ecosystem, with 40 partners and validators experienced in running nodes and decentralized networks from other proof-of-work and proof-of-stake projects like ETH2, Cosmos, Terra, Solana, Polkadot & Kusama, Near, Celo, and many more. They have also gained more experience from SKALE’s testnet. Few months after the launch of SKALE’s mainnet over 50 Dapps are running on the network.
Here is a list of partners and validators on the SKALE network: Figment Networks, Blockdaemon, Certus.One, NGC (Neo Global Capital) , Stakin, Bison Trails (in development), Blockware, Cypher Core, Ankr, Dokia Capital, Staked, Hashed, Chorus.One, Chainflow, ConsenSys Labs, Hashquark, Audit.One, 01 Node Anonstake, WolfEdge Capital, Staking Facilities, Hashedkey, Blockchange, Boost VC, Buidl VC, Canaan, Floodgate, Galaxy digital, Hack VC, MultiCoin Capital, Oyster Venture, Recruit, Signia, Visary, Spartan, Winklevoss capital.
More on SKALE validators here https://skale.network/blog/validator-list-for-skale/
You can apply to become a validator using this link https://skale.network/validators-signup
Initially, network representatives comprised of developers who run SKALE, node validators, and early investors who supported the network will be elected by the N.O.D.E. foundation. However future elections will be carried out via on-chain voting by token holders. The representatives will serve the community by facilitating on-chain grants and budget decisions.
SKL TOKEN AND TOKEN ECONOMICS
SKL is the utility token of SKALE network that serves as a means of payment by developers to rent elastic side chains for a fixed period which can be renewed, staked by validators in the system to gain node participation access, and by token holders to earn rewards through delegation.
The token has four basic functions :
Governance and Voting: Network participants will be able to carry out on-chain voting to decide on important economic parameters on the SKALE network.
Security and Staking: Validators stake SKL tokens on the network to be able to run nodes and take part in transaction validation. The stakes are slashed if nodes act maliciously or are rewarded for good performance.
Staking Rewards for Delegators: Token holders receive staking rewards periodically from fees paid by developers as subscription and an inflation pool.
Elastic Side Chain Subscription: Developers pay subscription fees in SKL tokens as rent to use the elastic side chains for a specific period which can be renewed.
SKL is an ERC-777 standard token with ERC-20 support on the ethereum ecosystem. Token holders can store their SKL tokens on common wallets and earn staking rewards without having to send them to a delegation smart contract.
SKL token is already listed on major cryptocurrency exchanges like uniswap, Binance, Houbi, Crypto.com, and some others with more listings to come. The token is already up more than 300% from its token sale launch on Consensys Activate.
TOKEN DETAILS
Ticker: SKL
Standard: ERC-777
Max Supply: 7,000,000,000
Est.Network issuance: 4,140,000,000
Initial Circulating Supply on Day 61: 564,466,667 SKL
Public launch price: $0.03
- SKL token contract: https://etherscan.io/token/0x00c83aecc790e8a4453e5dd3b0b4b3680501a7a7
Read more about the tokenomics here https://skale.network/tokenomics
CONCLUSION
Although SKALE network has been in its inception since 2017, the year 2020 proved to be a good year after a successful launch of its mainnet in three phases despite all the challenges including the coronavirus pandemic. This year has been set out to be the year of Smart Contract. It would be interesting to see the real growth within the system with more Dapps being built on the network offering real solutions, more validators increasing decentralization and more people being aware of SKALE network.
In my opinion, I would like to see a decentralized messaging app or social media as people are forced to share their data or watch unnecessary advertisements on centralized options. The SKALE network provides the infrastructure of decentralization, scalability, and security for the exponential growth of blockchain technology.
Learn more about SKALE network from the whitepaper https://skale.network/whitepaper
