Summary

SKALE is composed of potentially unlimited blockchains, which are modular, secure and fast. SKALE operates integratedly with the Ethereum blockchain. Developers migrate DeFi projects to their own SKALE chains, taking full advantage of Ethereum's security advantages to achieve high throughput and zero gas fees.

Introduction

In popular blockchains, user and developer activity increases day by day, often reaching limits in terms of speed and capacity. At the same time, in order to create the future of Web3, the blockchain community urgently needs to build a smooth and frictionless user experience. To support the exponential growth of decentralized applications (DApps) on the Ethereum network, the SKALE project was born.

What is SKALE?

SKALE is a modular Layer 1 and Layer 2 hybrid network composed of scalable interconnected blockchains. Through it, developers can migrate their projects from the Ethereum network to a SKALE-managed blockchain to achieve high throughput with minimal gas fees.

SKALE was founded in 2018 by Jack O'Holleran and Stan Kladko to enhance the overall user base in the blockchain field experience. Its vision is to provide fast, simple and free blockchain applications to all users. Through EVM (Ethereum Virtual Machine)-compatible blockchain, SKALE creates a fast, fuel-free ecosystem to support the development of NFT, games, DApp and other projects.

How does SKALE work?

SKALE integrates with Ethereum while running its consensus mechanism. The design leverages Ethereum’s Proof-of-Stake (PoS) network and combines it with SKALE to provide high-speed, secure and zero-gas transactions. In terms of cost and performance, it will also be of great benefit to Web3 and DeFi applications, helping Ethereum mass adoption.

Multiple chains

SKALE is a multi-chain network. There is an unlimited number of SKALE chains that can run as independent blockchains. These blockchains are interoperable and compatible with virtual machines, which means users can deploy existing Ethereum-based smart contracts directly to the SKALE chain and enjoy high throughput and low latency services. Developers can also use the SKALE chain to run smart contracts, decentralize storage, execute summary contracts, and more.

SKALE has also modified existing virtual machine functionality to allow more smart contract use cases. For example, users can deploy the SKALE chain using the FileStorage smart contract to store larger files in network nodes. Through the inter-chain communication function, users can also transfer tokens and NFTs between different SKALE chains.

In SKALE, each blockchain is highly configurable. Users can choose the chain size, consensus protocol, virtual machine, main chain and additional security measures according to their needs. The network is expected to flourish in the future, supporting blockchains other than Ethereum.

To use the SKALE chain, developers need to pay a network subscription fee, which is delivered through smart contracts in Ethereum. Fees will be shared with validators and the SKALE community.

SKALE Network

SKALE uses a decentralized node network to create a fund pool security system . Each node provides resources for multiple SKALE chains, including storage, monitors runtime and latency, and provides node owners with an SKL interface for withdrawing, depositing, staking or claiming native utility tokens. Each SKALE chain added to the network creates more capacity while pooling security resources with other sidechains.

SKALE network consists of SKALE Manager and SKALE Node. SKALE Manager exists on the Ethereum mainnet. It is the access point to other smart contracts in the SKALE ecosystem and supports the creation and destruction of the SKALE chain.

SKALE Node is run by users who stake a predetermined number of SKL tokens in Ethereum and meet network hardware requirements. Once admitted into the network, they can support single or multiple SKALE chains. SKALE Manager will randomly assign nodes to a group of 24 peer validators to ensure decentralization. The peer will then audit the node's uptime and latency. Based on their performance at the end of each network period, they will be rewarded with SKL tokens.

SKALE nodes use virtualized sub-node architecture, and each node can run multiple SKALE chains at the same time. Virtualized child nodes are designed for dynamic scaling to enhance network resiliency. Virtualized child nodes are also responsible for running the SKALE virtual machine, SKALE consensus and inter-chain communication.

What is SKL?

SKL is SKALE’s native cryptocurrency and utility token. Its total token supply is 4.27 billion.

SKL is an ERC-777 token and is backward compatible with the ERC-20 standard. It supports token-level delegation and is a safe, non-custodial staking method. Users can stake SKL using delegation keys in their wallets without locking funds in smart contracts.

SKALE tokens are used for online payments, including SKALE chain subscriptions. Token holders can stake SKL as a validator or delegator and receive rewards. As validators, they can run nodes to verify transactions, execute smart contracts, and secure the SKALE network. This earned it SKL rewards from the SKALE chain subscription. If SKL holders choose to stake as a delegator, they will only receive part of the validator rewards.

In addition, SKL gives token holders the right to participate in the governance of the SKALE network. Through on-chain voting, they can decide SKALE’s economic parameters and future development direction.

How to buy SKL on Binance?

You can buy SKALE token (SKL) on cryptocurrency exchanges such as Binance.

1. Log in to your Binance account and click [Transaction] - [Spot].

2. Search for "SKL" to view available trading pairs. We will use SKL/BUSD as an example.

3. Visit the [Spot] box and enter the amount of SKL to be purchased. In this example we will use a market order. Click [Buy SKL] and the purchased tokens will be credited to your spot wallet.

Summary

With the increase in DApp usage, SKALE has the potential to grow exponentially through a dynamic multi-chain network. By providing high-throughput, low-cost, and low-latency transactions, SKALE can become a viable scaling solution for the Ethereum blockchain.