SKALE NETWORK OVERVIEW
Over the years, since the invention of blockchain technology and cryptocurrency, several projects have emerged with the aim of solving different existing problems. But it hasn’t been rosy. We have witnessed a lot of failed projects with failed promises all in the name of attempting to bring decentralization to the world’s economy.
However, I wouldn’t want to start mentioning the several failed projects here, rather I would love to introduce my readers to a great project which has been designed with some great features such as Elastic blockchain network and backed by a great and effective team who are set to transform the cryptoworld by bringing a complete decentralized web 3 network project to the world making it easier o
In fact, a project has never been this great with a supper elastic blockchain. You are maybe wondering what project I am reoffering to, it’s none other than SKALE NETWORK.
WHAT YOU NEED TO KNOW ABOUT SKALE NETWOK
In order to solve the problem of network conjestion, low transaction speed, partly or none decentralized blockchains network and a lot more challenges that have faced the existing blockchain network, SKALE NETWORK is designed as a web 3 platform which is open source and with the aim of introducing speed, security, privacy and a blockchain that is easy to configure by developers. SKALE NETWORK is uniquely created to make Decentralized web more user friendly to everyone including developers, validators as well as everyday users.
It’s interesting to know that SKALE is an elastic blockchain network designed to allow all interested developers to create completely Decentralized Chains that are also highly configurable and compatible with the Ethereum blockchain. Uniquely created, SKALE chains can carry out up to 2,000 transactions per second ( tps) per chain on a sub-second block time as well as being able to run full state smart contracts. That is not all, SKALE is also offers Decentralized storage and machine learning in his struggle. With the high gas fees witnessed on Etherum blockchain, I think SKALE NETWORK is coming at the right time to put an end to those challenges.
Interestingly, the fact that SKALE NETWORK is one of the best, if not the best Elastic blockchain network can be attributed to the active involvement of SKALE Labs.
Founded by Jack O’Holleran and Stan Kladko who are both great entrepreneurs, and with offices in San Francisco, Kharkiv, and CA, Ukraine SKALE Labs Inc. is one great main team that has greatly supported SKALE NETWORK in building it as an open-source Decentralized elastic network protocol. With the help of SKALE Labs, SKALE NETWORK is meant to build a platform that permits users to create a high performance and low-cost side -chains that are able to run a perfect smart contract that can be instantly compatible with Ethereum blockchain.
It doesn’t stop there, SKALE Lab is meant to assist or empower SKALE NETWORK to generate an outstanding performance experience for those developers as well as enhance speed and a lot of other interesting functions without compromising on the Decentralized status or security status of the blockchain.
To show how powerful SKALE Lab is and the greatness we expect from SKALE NETWORK , SKALE Lab Team has as a matter of necessity built a core team that is made up brilliant and experienced software engineers, product marketers as well as senior operators. Also, there are so many investors investing in SKALE Lab including Multicoin Capital, Blockchange, ConsenSys Labs, Hashed, HashKey, Floodgate, Multicoin Capital, Recruit Holdings, Signia VP, Winklevoss Capital, and many others I can’t mention in this article.
Due to the unique nature of SKALE NETWORK which is easy to integrate without a tedious job, and the low transaction cost with high transaction speed, so many dApps (Decentralized Applications) up to 60 have already started running on this network such as games, real estate, Defi streaming of music and many others. You can apply to the SKALE innovator program right away and easily run your solidity smart contract several thousands of times faster than what you have ever experienced on other existing blockchains while paying a relatively low mainnet fee.
Like I said earlier, so many dApps are already running their smart contracts on elastic sidechains of SKALE and enjoying the innovator program which are Engineering Support, Quality Assurance checks, and other several aspects.
For a breakdown of all about SKALE NETWORK, I am designing a course with 5 key subtopics that are of interest and which will help my readers understand and appreciate this unique project the more.
UNDERSTANDING THE NEED FOR SKALE NETWORK
In this first chapter, I shall be introducing you to SKALE NETWORK and why it was so uniquely designed.
In order to solve the challenges that the existing Decentralized blockchains such as Ethereum and others were facing which include but not limited to: Non-scalability, Low throughput, high cost of transactions, and delay in transactions, and a lot more, men came together and created SKALE NETWORK . This was designed in such a way that it offers High throughput, low cost of the transaction, high level of scalability, low latency, elastic blockchain network designed to be interoperable with Ethereum. The word “interoperable” here simply means $SKL transactions can be carried out on the Ethereum network as well as SKALE mainnet.
However, initially, SKALE NETWORK was created to function as elastic sidechains for the Ethereum Blockchain. And was meant to be operated by a group of virtualized subnodes which is selected from a particular subset of nodes in the said network and are able to run on all subsets. This can also be termed “multitenancy” SKALE NETWORK was designed in such a way that each side chain remains highly configurable allowing users to choose their chain size, consensus protocol, main blockchain as well as a virtual machine. All these are expected to take place without affecting the security level of SKALE NETWORK. Interesting isn’t it?
One might ask, what is the use case of SKALE? Now hear this, SKALE is designed with a token that serves both as a utility and Proof of work. The way SKALE NETWORK is designed in such a way that in order to be eligible to work, Nodes have to run what is called the SKALE Daemon and stake some amount of $SKL on the Ethereum mainnet through SKALE Manager which are series of smart contracts.
NODES AND MODE OF OPERATION
Every time a node is admitted to the network, there will be a process where 24 peer nodes will be chosen randomly so that its uptime and lantency can be audited. This continues from time to time on the 1 SKALE Manager and it also acts as a determinant for a node reward to network participation
Also, note that whenever any elastic side chain is created, it is the duty of the users to be specific about the chain configuration they wish to create as well as pay for the period they desire to rent resources from the network to use in running their chain. And if the network is made up of bandwidth, nodes meeting computation and storage requirements specified in the chain’s configuration will be assigned randomly to participate as its sub nodes on the chain.
Good enough, these characteristics, including EVM- compatibility Elastic side chain enables users or consumers to make use of Ethereum smart contracts directly to them and in this case, a relative increase in gas limit contributes to increase in the computation and storage limitation of the Ethereum Mainnet EVM. With this, there is a tendency for more use cases of smart contracts that were initially was expensive or difficult to use.
If we consider the existing Ethereum Mainnet EVM, we will discover that we require up to 10,000 blocks to store large files that are up to 100MB or more. But with SKALE NETWORK using Elastic side chain, users will be able to store large files as large as 100 mb on nodes in the network. Not just that, we also discover that on SKALE NETWORK Each elastic side-chain supports BLS signatures in its consensus model this, in turn, permits inter-chain messaging. This implies that a virtual sub- node on one chain has the ability to validate that there was a transaction signed and received by virtual sub-nodes on another chain with the use of a signature from that chain’s group, and this is distributed to every other chain on the Ethereum mainnet. Also worthy of note is the fact that this kind of extension with elastic side chains is always in support of the microservice model, in which case each chain has the ability to carry out some specific operation and also able to feed their out-puts serving inputs to other Elastic sidechains on the mainnet .
Another good thing here is that as each Node in the network continues to take part in their assigned Elastic sidechains they receive a bounty award depending on their performances.
THE CREATION OF NODES
When we talked about Node Creation, it entails some steps. In order to be added as a Node to the SKALE NETWORK an imminent Node should run the SKALE daemon which is designed to evaluate the Nodes that are about to be added in order to be sure of its capacity to uphold the requirement of network hardware.
In a situation where the incoming node 3 is able to pass all the verifications procedures by time, the daemon will allow it to apply and submit a request to join the network to the SKALE manager. The request is expected to contain both the needed network deposit and node metadata collected by the same daemon. Some of those data include IP address, port, a public key, and other data.
There two kinds of nodes, full nodes, and fractional nodes. For full nodes, all 4 of their resources will be used for a single elastic sidechain whereas fractional nodes is meant to take part in multiple Elastic side chain. At the end of a node creation, there will be a large group peer network that will be assigned randomly. We also have what we called “peer 5” this peer is always audit node downtime and latency on a regular basis and at different intervals and the batch metric is then submitted to the Skale Manager. This is done once for every network and is used to determine the bounty reward given to the Node on SKALE NETWORK.
There is what we called “Node Destruction” At every point where Nodes desire to exit SKALE NETWORK, they have to as a matter of necessity declare their exit first after which they wait for the period where the process is going to be finalized. Remember there is about 6 finalizing period which may span within a period of two days, the node will be disabled and it will become inactive. At this point, Nodes are able to withdraw the stake they had initially submitted from the network without issues.
However, there may an instance where a participant finds it difficult to patiently wait for the time of finalization and decided to remove his node from the network at once. If this happens, SLA virtualized subnodes will term this as a non-conforming Node. Meaning that the Node is dead and by so doing such a participant will forfeit the bounty reward that was supposed to be earned for the node.
HOW SKALE TOKEN WORKS
The SKALE Network token ($SKL), is a hybrid utility token that gives the right to work in the SKALE NETWORK, as a validator, stake as a delegator. as well as share resources by deploying and renting an elastic side chain or Elastic blockchain within a specified time as a developer.
SKL token holders (delegators) stake their SKL tokens to validators who run Nodes that make the SKALE network work by approving squares, executing keen agreements, and making sure about the organization. They are compensated with SKL tokens for their endeavors.
Installment strategy for SKALE Chain membership charges. Developers buy their membership admittance to Elastic blockchains (S-chains) utilizing SKL tokens.
Rewards for validators and delegators staking their tokens. Prizes are paid month to month, in light of charges paid by users for chains and a month to month expansion of tokens into the platform. Administration and voting SKL tokens will be utilized for on-chain casting a ballot, which will control all financial boundaries of the SKALE Network. read more.
ERC-777 to Support Delegation on Token Level SKALE is based on an inventive ERC-777 symbolic standard that underpins delegation on the symbolic level. ERC-777 is completely in reverse viable with ERC-20, which implies that it is upheld by all members of the Ethereum biological system with ERC-20 help.
One of the significant elements of the SKL token in the SKALE Network is its capacity to add to organize security by means of delegation and staking. This is unlike with ERC-20, with ERC-777, a delegator presently doesn't requirements to send the token to the delegation shrewd agreement, yet rather shares with the staking provider the protected delegation key while holding their preferred tokens in any cold or hot wallet they prefer.
USE CASES OF SKL TOKEN
As we already know, SKL token is a utility token but has other functions and utilities, some of which are:
- SkL token can be used as a SKALE Chain subscription fee. In this case, developers are meant to buy their subscription access to elastic blockchains (S-chain) with SKL tokens. This makes it very easy to pay for subscription fees and begins developing their dApps.
- SKL Token serves as a Security and Staking instrument: Here Delegators stake SKL tokens to Network validators as they are in charge of running the SKALE NETWORK through operating nodes by validating different blocks also executing smart contracts as well as securing the network. As this happens, delegators and validators are both rewarded with SKL tokens for their contributions in terms of collateralization and effort made.
- Another use case is Governance voting: It’s important for us to know that SKALE governance has to do with a delegated SKALE Model, where a stakeholder can either participate in governance directly by voting with its stake or delegate the voting power to other stakeholders. There is a specific voting model used, which is a simple majority vote of all stakes that take part in the vote.
Therefore, the SKL Token is designed to be used for on-chain voting and this will be in control of all utilization and functions of the SKALE NETWORK. With this, the network will get to a point that voting is needed in order to change the real core economic functions of the network which include fees and issuance.
SKALE NETWORK GOVERNANCE
In order to build a strong project such as SKALE NETWORK. And enjoy great success, there is a huge need to have a Decentralized Governance with a great team that makes up of some core and great stakeholders. With the existence of Governance, there is a tendency that all contributors to the NODE Foundation will come together and reach a certain decision agreement regarding the way forward on security, quality, and success of SKALE NETWORK.
However, SKALE N.O.D.E (Network of Decentralized economy) Foundation is being set up by SKALE labs and they are meant to handover several items such as money, IP, Assets, as well as the power to the said foundation. When this is done, the foundation will give out control when the Network is launched to the Decentralized Governance model for the Governance of SKALE NETWORK.
There will be On-chain voting which is meant to be managed by the Decentralized governing body, and this will control all the parameters of the platform’s economics of the SKALE NETWORK. The On-chain voting is designed in a way that it will be supported and made more effective by the support of the foundation council and Network representatives,.
Also, Community and Decentralized control through active –Chain voting will be handled by the council and network representative. This is to say that the Governance of SKALE functions as a delegated Stake model. Don’t also forget that a Stakeholder has two ways of taking part in the Network Governance, the first way is directly by voting using his Stakes and the second way is by delegating the voting power to other people who are Stakeholders in the community.
SKALE NETWORK. Is a fully Decentralized Network therefore with these properly arranged council of Governance and Network foundation, it will be of great help in filtering topics and optimizing On-chain voting and will offer a positive model of running a centralized democracy as well as a Decentralized autonomous network that will move SKALE NETWORK. Forward into achieving its goals.
There is still a lot to be learned about SKALE NETWORK that was not captured in this crash course, hence I am providing the links below so you can go through and have good knowledge about SKALE NETWORK and how to be part of it so as to enjoy the full benefits accompanying the project.
Read more information about the SKALE