SKALE Token (SKL) is an Ethereum-based ERC-777 token designed to bring scalability to Ethereum, increase transaction capacity, and lower transaction costs. SKALE token helps achieve these goals in several ways.
<
Back
SKALE Network
Swap Tracker
Table of Contents
What Is SKALE Network?
SKALE Token (SKL) is an Ethereum-based ERC-777 token designed to bring scalability to Ethereum, increase transaction capacity, and lower transaction costs. SKALE token helps achieve these goals in several ways.
Blockchain developers can use SKALE tokens to “rent” scalable independent sidechains in the SKALE Network. It offers access to the whole Ethereum ecosystem and can be used for more effective building and scaling Ethereum-based applications.
As SKALE network works on PoS algorithm, SKL token is essential for the network maintenance. It allows one to choose the role of a validator and run a node that validates blocks and thus keeps the network secure for profit, or a delegator – a token holder who by staking his tokens “delegates” them to validators to use for their work and get a smaller reward. Note the importance of the delegation mechanic to the network: the ERC-777 token standard is used, instead of the more popular ERC-20, because it features delegation on the token level (it allows the transfer of a public key and not the token itself).
There are also some fairly unique aspects of SKALE, for example, the validator node rotation system which helps mitigate the risk of collusion and bribery. Another notable feature is having a subscription model to provide developers with sidechains for their projects. Rather than following fluctuating Gas prices like other Level 2 Ethereum-based services, SKALE lets developers access its resources for a fixed fee, paid upfront in tokens (SKL).
Pros and Cons of SKALE Network
Advantages of SKALE
Although this project is quite new and relatively unknown, technologies used by this network are considered quite promising and are supported by the industry leaders and experts. Having such a solid technological foundation means that it’s at least reasonable to expect growth in the long term, as more people join the network. This is also evidenced by the names attached to it: SKALE is supported by experienced players such as Boostvc, Winklevoss Capital, Spartan, etc.
SKALE is based on Ethereum because its protocol is dApp-friendly, while also aiming to improve on the basic Ethereum functionality and expand its infrastructure. For example, resources provided to developers by SKALE are highly configurable: their parameters, such as the chain size, time period, and others, are chosen individually depending on the project. Having additional decentralized storage capacity is also a key feature of SKALE. Another big improvement compared to the basic Ethereum level is the high throughput within the network – about 2000 transactions per second.
Transaction safety is provided by combining random validator node assignments with frequent node rotations, which is unique among sidechain solutions, which usually run the risk of collusion due to the small number of nodes. Fixed cost subscription model for developers is also a very attractive feature: since the user pays once for access to the network’s resources during a specific time period and makes no other payments within this period, in the long run, it can bring transaction costs nearly to zero.
SKALE is supported by the Ethereum-friendly studio ConsenSys, which has been a partner in the initial token launch and (at the time of writing) provides a platform for the token delegation. This partnership helps legitimize SKALE as a serious player as well as provide access to the US market. This token is supported and represented on some of the largest exchanges such as Coinbase, Binance, and Huobi.
Finally, on a more philosophical note, the SKALE developers’ stated goals of accelerating mass adoption of blockchain technology and decentralization, in general, would also be a “pro” for someone who is a true believer in the same kind of future.
Disadvantages of SKALE
Investing in a new and unknown project is exciting, but it’s also quite risky. Compared to some other solutions, SKALE’s technology can be considered unproven, and not everybody can tolerate these risk levels (although overall SKL hasn’t shown itself to be any more volatile than a lot of other crypto tokens/projects).
Another issue with this network is its lack of marketing and promo activities, which may keep the network and community around it from growing. At the time of writing all signs point to SKL being more suited to be a slow-burn project – but, again, there is not much of a focus on attracting the right kind of audience: there’s a risk that the people who’d been expecting fast and large returns get disappointed and sell their tokens before this project can generate any long-term interest.
Also, all Layer 2 projects dedicated to optimizing Ethereum-compatible dApp development and improving their scalability run the same risk: becoming obsolete after full Ethereum 2.0 launch and move to the Proof-of-Stake protocol. This is going to depend on whether or not Ethereum developers are planning to change network infrastructure, and if they do, which features are they going to include in this process.
Where to Buy SKALE Network?
The most popular or largest wallets that can store SKL include:
Storing SKL: Best SKALE Network Wallets
SKL is listed on:
Conclusion
SKALE Network is a relatively new player among the crypto projects which is worth watching. As dApp development gains traction, chances are that SKALE Network will grow to accommodate demand. Related to this point, one of the big unknowns which can either make SKALE or break it (or at least contribute greatly to the project’s future) is the upcoming Proof-of-Stake consensus mechanism adoption by Ethereum, which SKALE is based on: it will lower the costs of participating in the network, which will either drive SKALE to fizzle out, have to adapt, or attract more blockchain developers to the ecosystem and help SKALE thrive. Another thing to watch for is the way the SKALE team deals with their marketing and community strategy in the future and whether they can get out the information about their – admittedly very promising – technological solutions.
Note that the SKL historical performance hasn’t been very strong as of yet, which makes analysis harder and predictions very contradictory, especially comparing it against the potential it holds. It might be too early to draw any conclusions, though, since the project is so new.
To sum up, this project’s features and performance may suggest that although it doesn’t necessarily look ready for immediate explosive growth, SKALE looks like a promising project to watch in the long term.
Exchange SKALE Network
Other currencies
All coins
Bitcoin
Ethereum
XRP
Cardano
Polkadot
Chainlink