SKALE

What is SKALE (SKL)?

SKALE is a decentralized network comprised of interconnected, scalable, and modular blockchains. It aids developers in migrating their projects from the Ethereum blockchain onto any of the numerous independent chains within SKALE to get high throughput with minimal gas fees incurred.

Background of SKALE Network

In 2018, the network officially launched, with the primary individuals behind its formation being Stan Kladko and Jack O’Holleran. Both of them have extensive experience in cryptography and blockchain.

The Significance of Scalable Blockchain

Scalability is an important endeavor for any newly formed project. It essentially refers to the ability of the network to support higher transactional throughput, i.e., to process more transactions every second. It is no wonder, then, that every blockchain project these days places it at the top of their list of priorities, as achieving a significant portion of it is imperative for mainstream adoption and seamlessness in operations.

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Core Components

Here, we’ll be looking at the core components underlying the entire SKALE network, mainly the various chains and nodes to be found here, along with its Ethereum mainnet connection.

SKALE Chains

Due to its nature as a decentralized, open-source, and “elastic” blockchain network that is made to scale Web3-based applications, the chains you will find here can be configurable and application-specific blockchains, often referred to as dynamic shards, which exist just a layer above Ethereum. In other words, SKALE can also be thought of as a Layer 2 solution for scaling Ethereum.

SKALE Nodes

The SKALE Network’s operations can also be attributed to the pool that’s filled with validator nodes that are responsible for confirming transactions inside the chains they base their operations on.

Such nodes then engage with the SKALE Manager, which is based on Ethereum and is comprised of more than 35 smart contracts.

Ethereum Mainnet Connection

Through its native validator-secured bridge, known as IMA, chains on SKALE may exchange messages or transactions with one another and also with Ethereum’s mainnet, enabling developers to utilize SKALE to power their decentralized applications while simultaneously allowing for message and token transfers from and to Ethereum and other chains.

Consensus Mechanism

Within this section, we will look briefly at how it achieves consensus within its network, i.e., its consensus mechanism.

BFT Consensus

The consensus on SKALE can be described as this leaderless and asynchronous consensus that utilizes the BLS threshold cryptography in signing blocks. Inherent within such a consensus algorithm is the assumption that two out of three node operators aren’t malicious.

If more than one out of the three happens to be malicious, the chain can then be paused. If that same number crosses two, then the entire ledger can be rewritten to steal assets and generate a false truth.

Fraud Proofs

To combat what we highlighted earlier about the potentiality of malicious nodes, SKALE comes with network monitoring mechanisms that have been designed to identify malicious and/or underperforming or non-performing nodes and then penalize them accordingly through a range of measures.

Performance and Scalability

Let’s now shift our attention towards performance and scalability and see how well it does in that area.

Throughput

As alluded to earlier, SKALE provides considerably faster throughput for transactions in comparison to natively operating those same transactions above or on Ethereum. As a result, the verification process can be sped up. For instance, due to its modular architecture, 100 SKALE chains may process around 39,000 transactions per second (TPS), while a thousand of them can process well over 390,000 TPS.

Latency

Also, because of the modular architectural elements, which we mentioned previously, the latency here is minimal when compared to other chains.

In other words, enormous volumes of data, or rather, messages, are capable of being processed with substantially lower delays.

Elasticity and Capacity

What also warrants mentioning is that the SKALE Network utilizes what it refers to as a mechanism for elastic capacity where network nodes can be virtually subdivided. Consequently, these virtualized subnodes enable every SKALE node to operate numerous sidechains simultaneously.

Security Measures

SKALE incorporates this blend of security measures on an enterprise level to maintain the safety of the tokens on it. As we stated earlier, it has integrated a Byzantine fault-tolerant protocol, allowing for secure global transactions. In addition, it even comes with non-custodial delegated staking. Furthermore, this is a major leap ahead when compared to other DPoS networks that necessitate users submitting their tokens to the smart contracts on the network. With SKALE, delegators may do that directly from their wallets.

Real-world Applications

Here, we will go through some of the real-world applications of this network, namely within DeFi, NFTs, and enterprises.

Decentralized Finance (DeFi)

Because of its TPS rate and zero gas fees, SKALE can fit naturally within the DeFi sector and can be of utmost benefit for DeFi protocols that are seeking to innovate or implement new use cases, or if they simply wish to cater to the 1 million+ users on SKALE.

Non-Fungible Tokens (NFTs)

The same benefits can leap over to non-fungible tokens as well, in that the network can be used as a base to sell event tickets, thus facilitating transactions for music and other artwork, among various other things.

Enterprise Solutions

As for enterprises, SKALE can be utilized to form decentralized e-commerce marketplaces, helping with the tracking or tracing that’s usually associated with supply chains, aiding with forming and maintaining business registries, and much more.

Community and Ecosystem

Due to it being based on Ethereum, it is poised to benefit from the vast library of decentralized applications and blockchain solutions that are already available on the second-largest blockchain network, which can be easily ported over, or even from new projects built natively on it. As for the community, it has approximately 1.2 million users or more, and that number is set to grow as well.

The SKL Token

We will now be taking a look into its native token, SKL, and discussing the roles it plays, along with a brief mention of tokenomics.

Utility and Purpose

The SKL token’s utility lies in how it serves as a primary medium of exchange within the network for the various transactions that may take place, in how it can be staked by both delegators and validators (both of whom would then be rewarded), and within governance, serving as a way to significantly impact the future of the network.

Token Supply and Distribution

Moving onto supply and distribution, its maximum supply is 7 billion tokens, whereas its circulating supply is around 4.9 billion, and its total supply is approximately 5.1 billion tokens. As for distribution, 33% of it has been allocated to validator rewards, 28.1% to delegator allocation, including public allocation and early supporters, 1.3% to the ecosystem fund, 4% to the core team pool, 7.7% to the protocol development fund, 10% to SKALE production, and 16% to the broader founding team.

Buying SKL Tokens on Binance

So, if you’re looking to buy some SKL tokens for yourself and engage with the network, then we’ll explain how that may be carried out on Binance.

Providing Basic Information

The process of buying is usually accompanied by the registration process, and that can be done by clicking on the link below, which will take you to Binance’s registration page using a special Coin-Labs referral code, and adding some basic information, like an email address, password, etc.

Verifying Your Identity

Verifying your account or going through its KYC process should come next if you want a hassle-free trading experience. This can be done on its verification page, where you’ll need to enter some details about your identity and then provide some documentation proof backing it up.

Securing Your Binance Account

Next comes securing your account, which you can do by setting up 2FA and biometric scanning. So, navigate to Binance’s security page, then follow the instructions that Binance will provide to set things up, after selecting the relevant options.

Funding Your Binance Account

Funding your account, i.e., making that first deposit, can be carried out through the deposit page. So head over there and select a token and a network that supports it. Just paste the deposit address that Binance will generate into the withdrawal field of an external exchange or wallet and confirm your fund transfer.

Making Your First SKL Purchase

While there will be several ways, like spot, futures, and P2P trading, to purchase some SKL tokens, if you’re in a hurry, then utilizing Binance’s convert feature would be most appropriate, as you’re only swapping what you’ve already deposited for them.

Transferring SKL to Your Wallet

Once acquired, you can transfer those SKL tokens to your wallet through Binance’s withdrawal page. There, select SKL, the network for it, specify the amount being withdrawn, and paste your wallet’s address within the withdrawal field. Confirm your withdrawal and wait for it to be completely processed.

Future Directions

Here, we will be diving a bit into the future of the network and what’s in store for it later on.

Upcoming Upgrades

As far as updates are concerned, it is just wrapping up its 2.2 release for this year and has already started working on its 2.3 upgrade, the primary focus of which is to improve or update the compatibility with the EVM (Ethereum Virtual Machine), ironing out small incompatibilities for a more seamless deployment and development process.

Moreover, there will even be improvements to its validator services through a new protocol release centered around automated IP change, which would simplify network operations.

Expansion Plans

As far as expansions are concerned, SKALE has more than 50 gaming, Web3 social, and AI decentralized applications that are set to launch. Hence, it is looking to expand its offerings within every blockchain sphere and more to bring in additional users and attention.

Conclusion

As the utilization of decentralized applications rises, there is potential for SKALE to expand alongside that through its multi-chain network. By providing high throughput, no gas fees, and reduced transactional latency, SKALE is positioned uniquely to be among the leading scaling solutions on the Ethereum blockchain.

We Coin-Labs.com provides only objective information about SKALE.
Therefore, we are not responsible for the investment decision in SKALE and the resulting loss.

SKALE Basics

Here are some factors that investors should consider before investing in SKALE.

Cryptocurrency Features	SKALE (SKL)
Publisher or Developers	Stan Kladko, Jack O’Holleran
Headquarters (Registration Number)	San Francisco
Symbol	SKL
Platform	Ethereum
Published Date (CMC Registration)	2024-11-01
Max Supply	7,000,000,000 SKL

Reliability Score of SKALE in 2024

These are indexes mesuring the investment reliability of SKALE conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 8 Exchanges
Number of Available Pairs Worldwide	185 Pairs
Market Cap of the Cryptocurrency	365,335,109 USD (Rank #134)

The table above shows the result of investment suitability evaluation for SKALE.
Check out how we evaluate cryptocurrencies on the crypto rating description page.

SKALE Price

Here are the price and recent trading volume of SKALE. (Data of 2024-11-02 00:35:00)

Price Items	Price and Trading Volume of SKALE
SKALE Price	0.035 USD
Price Change 24h	-1.43%
Price Change 7d	-6.63%
Trading Volume 24h	24,177,477 USD
Trading Volume Change 24h	3.61%

Cryptocurrency Metadata

You can check the development status and social media information of SKALE through the links in the table below.

Metadata Source	URL
🌎 Official Website	https://skale.space/?utm_medium=website&utm_source=coinmarketcap&utm_campaign=skalepage
📖 White Paper	https://skale.space/docs/?utm_medium=website&utm_source=coinmarketcap&utm_campaign=skalepage
🛰️ Source Code (GitHub)	https://github.com/skalenetwork
🐦 Twitter	https://twitter.com/SkaleNetwork
🤖 Reddit	https://reddit.com/r/SKALEnetwork
🎺 Message Board	https://skale.space/blog/?utm_medium=website&utm_source=coinmarketcap&utm_campaign=skalepage

Where to Buy SKALE

Here are the top ten world crypto exchanges where traders can buy SKALE in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Listed	https://www.binance.com/en/trade/SKL_BTC
Coinbase	Listed	https://pro.coinbase.com/trade/SKL-USD
Kraken	Not listed
KuCoin	Listed	https://www.kucoin.com/trade/SKL-USDT
Bitfinex	Not listed
OKX	Listed	https://www.okx.com/trade-spot/skl-usdt
Huobi	Listed	https://www.htx.com/en-us/trade/skl_usdt?type=spot
Bitstamp	Listed	https://www.bitstamp.net/markets/skl/usd/
Bybit	Listed	https://www.bybit.com/trade/usdt/SKLUSDT
Gate.io	Listed	https://www.gate.io/trade/SKL_USDT

Frequently Asked Questions