The SKALE Network is a Layer-2 scaling solution for the Ethereum network that allows developers to avoid mainnet congestion by shifting development off the main chain and onto nearby, SKALE-administered sidechains. Through the use of distinct, dApp-specific SKALE blockchains, SKALE enables decentralized application (dApp) deployment in a dependable, high-throughput, cost-effective environment. Developers pay for the creation of these blockchains with SKL, the SKALE Network's native utility coin. The SKL coin is also used for platform governance and SKALE staking.
The SKALE architecture enables the creation of high-throughput, low-latency "Elastic Sidechain Networks" that are compatible with Ethereum and substantially enhance the number of transactions that may be effectively performed across the Ethereum network. SKALE resulted in performance enhancements that allow Ethereum-built dApps to compete in terms of cost and throughput with Web2 apps. By reducing congestion, SKALE Network sidechains increase Ethereum mainnet scalability overall. Before getting into the SKALE Network's intricacies, it's critical to understand how scalable sidechains work in the blockchain environment.
After a successful incentivized testnet that ran without disruption for two months, SKALE Network launched its phase 1 mainnet on 10th of June 2018. SKALE's token was successfully launched in early September as the first proof of use sale on ConsenSys' Activate Platform, employing the Activate framework for conducting highly compliant offers. A 10X oversubscribed auction of 5 million USD in SKL tokens drew over 4,000 participants from 90 countries.
The SKALE Network genesis period coincided with the introduction of the Phase 2 mainnet on 1st of October. Approximately 4,000 delegators staked tokens among 46 Validator Organizations, resulting in a total value lock of 80 million USD. Binance, Huobi Global, and UniSwap all announced the listing of the $SKL coin on their respective exchanges on 30th of November.
The network's constraints were eliminated on 1st of December, allowing tokens that completed the proof of usage criterion to unlock into a transferable, liquid state. Validators and delegators received the first round of staking incentives as well.
How it works
The usage of Elastic Sidechains is key to the SKALE Network project. Elastic Sidechains function as autonomous blockchain systems that are connected with another blockchain ecosystem, in this instance the Ethereum platform. Users may tailor sidechains to their own requirements, which is why these formations are known as "Elastic Sidechains." Devs may customize the sidechain they wish to utilize for Dapps to meet particular requirements, such as choosing consensus protocols, virtual machines, the parent blockchain, and defining the security protocol on the sidechain. Developers can pay monthly fees to utilize sidechains for building and hosting decentralized apps after the sidechain is specified.
The Skale token (SKL) is the native cryptocurrency of the Skale Network, an open-source, decentralized network for constructing Ethereum-based blockchains and decentralized applications (dapps). The Skale Network intends to enable developers to create their own blockchains capable of communicating with the Ethereum network while avoiding Ethereum's gas prices and scale difficulties.
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