The SKALE Network (SKL) is an effort to make the Ethereum (ETH) blockchain cheaper, faster, and more flexible.
In particular, they claim SKALE can run an unlimited number of fast, on-demand, pooled-security blockchains with zero-end gas fees. Gas is the fee, or pricing value, a Dapp or smart contract pays to execute a transaction on the Ethereum blockhain.
They use gas to allocate the resources of the Ethereum Virtual Machine (EVM). The EVM is the digital computer that runs the Ethereum blockchain. Essentially, you use gas to buy EVM services. Without gas, you cannot operate an Ethereum solution, such as an ERC-20 stablecoin.
Gas-fees can increase the cost of building and deploying Ethereum solutions such as ERC-20 tokens. SKALE eliminates gas fees by allowing developers to deploy their own EVM blockchains without reducing security or centralizing the network.
Building a Cheaper and More Flexible Ethereum with SKALE
Theoretically, SKALE (SKL) can cut the cost of using Ethereum by eliminating the gas fees. They claim SKALE can improve the user experience for NFT platforms, games, and Web3 Applications.
In contrast to Ethereum, they claim SKALE offers unlimited capacity. They claim a SKALE feature called 100 Chains 12,000 transactions per second (TPS). Another SKALE feature they call 1,000 Chains can process 120,000 TPS with SKALE’s modular architecture.
That means a SKALE solution could handle 12,000 or 120,000 transactions a second. Thus, a SKALE e-commerce solution could serve 120,000 customers at once. Similarly, a SKALE game could handle 12,000 players at once.
In contrast, Ethereum was processing 13 transactions per second on 1 September 2022, Blockchair estimates. That means an Ethereum platform could crash or jam up if it tries to serve over 14 customers at once.
The SKALE Blog claims SKALE had processed three million gas-free transactions by 17 August 2022.
SKALE claimed to have 39,504 Total Users, 22 Chains, 26.379 million Total Blocks, and to have processed 5.009 million Total Transactions on 6 September 2022. SKALE served 25,817 active users and processed 2.837 million transactions in the 30 days ending on 6 September 2022. SKALE claimed to have users $35.723million or 19,905 ETH in total gas fees on 6 September 2022.
They claim SKALE could one day serve billions by processing over 10 million transactions a day on its chain.
SKALE adds security because it is a multichain network made of many blockchains. Having many blockchains increases security by adding layers of defenses to keep the bad guys out. This makes SKALE collusion-resistant.
One use of SKALE is for on-chain file storage by decentralized apps (dApps). For example, an insurance app could store payment information or verification online.
An important use of SKALE is to integrate with artificial intelligence (AI) and machine learning. For SKALE could support an AI that uses machine learning to verify nonfungible tokens (NFTs), synthetic assets, or customers’ faces.
They claim SKALE offers instant finality because it can process and end transactions fast. For example, SKALE could make stablecoin payments instantly. This adds security because the faster the transaction, the less time and opportunities the bad guys have to steal.
SKALE increases security by regularly rotating notes. The technology behind SKALE includes a leaderless Consensus model for block creation that is a variant of the Binary Byzantine Agreement (ABBA) protocol. This can limit subnode downtime by identifying slow links.
Interchain Messaging creates virtual subnodes for each chain and validates signed transactions. A Node Monitoring Service runs on each SKALE Node and tracks a certain number of nodes in the network. This allows performance tracking through the entire SKALE network.
Containerized subnodes add another area of security dApp developer can use to compete with centralized systems. A few features of SKALE include high transactions per second (TPS), rapid blocktimes, and Instant Finality Mathematically Provable Consensus.
How to Use SKALE (SKL)
Potential uses for SKALE include gaming, GameFi, Play-to-Earn (P2E) Gaming, Gambling, the Metaverse, and AAA-Game Blockchain hybrids.
To elaborate, the term Triple A or AAA game refers to commercial games built by industry leaders such as Electronic Arts, or Epic Games. Hence, a AAA-Blockchain hybrid allows a popular game such as Fortnite or Grand Theft Auto to operate on the blockchain.
Decentralized Finance (DeFi) uses for SKALE (SK) include stablecoin swaps, Automatic Market Makers (AAMs), decentralized exchanges (DEXes), ramps, lending, and prediction markets. Web3 uses for SKALE include decentralized media streaming, decentralized media hubs, censor-resistant social networks, personalized ads, and self-sovereign personalization or self-sovereign identity.
A self-sovereign identity is an identify verification mechanism, an individual owns and controls. Conversely, traditional verification mechanisms are centralized, hence criminals can hack them.
Decentralized e-commerce uses for SKALE include decentralized marketplaces, business registries, and tracking and tracing. Decentralized Autonomous Organizations (DAOs) include supply chain and logistics organizations, decentralized mesh networks, device registries, data marketplaces, and environmental monitoring.
Nonfungible token (NFT) uses for SKALE include artwork, collectibles, event tickets, fun engagement, music, video, media, and gaming.
What Value Could SKALE (SKL) have?
There is a strong interest in SKALE. SKALE (SKL) was CoinMarketCap’s 14th most-trending cryptocurrency on 3 September 2022.
In contrast, the SKALE Network was CoinMarketCap’s 143rd largest cryptocurrency, with a 4.572₵ Coin Price on 6 September 2022. CoinMarketCap gave SKALE a $169.397 million Market Capitalization, a Fully Diluted Market Cap of $320.52 million, and a 24-Hour Market Volume of $10.388 million on 6 September 2022. They based those numbers on a Circulating Supply of 3.7 billion SKL, a Maximum Supply of 7 billion SKALE and a Total Supply of 4.277 billion SKALE.
Conversely, CoinBase gave Skale a Coin Price of 4.59₵, a $169.5 million Market Cap, and a $10.4 million 24-Hour Market Volume on 6 September 2022. They base those numbers on a Circulating Supply of 3.7 billion SKL. CoinBase gives SKALE an all-time Coin Price high of $1.22. Hence, I consider SKALE a stable cryptocurrency.
If you are seeking a cryptocurrency that solves a real problem, blockchain scalability and could grow fast. I think the SKALE Network (SKL) is worth examining. In particular, they design SKALE to integrate with money making products such as AAA games. That makes SKALE worth examining.