- Designed to scale Ethereum Dapps
- Ethereum as a Service approach
- Network will have pooled security
- Dapps will rent elastic blockchains and sidechains
- Tokens are locked when staked
- Slashing will be in effect at a later date
- Validators rewards are not proportional to stake
- On-chain voting will control economic parameters
The SKALE Network is an “elastic” blockchain network that is designed to help scale the Ethereum ecosystem through “elastic” blockchains. Ethereum compatible elastic blockchains and sidechains will be the primary use of the SKALE Network.
Decentralized sidechains and blockchains are operated by a group of “virtualized subnodes” that are selected from a subset of nodes within the network. These chains can be run using all or a subset of a node’s computation and storage capacity, which means that a single node can perform work in multiple sidechains. Randomness, rotation and incentivizes are used by the network to create a highly secure environment for all dApps where each blockchain is secured with the resources of the entire network.
SKALE Labs was founded by CEO Jack O’Holleran and CTO Konstantin Kladko. Both have extensive experience as successful entrepreneurs in the tech industry in Silicon Valley, and were introduced to each other in 2017. They saw that there was a need to scale Ethereum Dapps and DeFi platforms and decided to build SKALE together.
Built for Ethereum
The SKALE team is bullish on Ethereum. They see Ethereum as the dominant platform in terms of developer traction, which is why they decided to help grow the Ethereum ecosystem rather than compete with it.
SKALE is built on the Ethereum network and is designed specifically to improve the speed and capability of Dapps utilizing the Ethereum blockchain, without losing their connection to Ethereum.
“Dapps bridge out to connect their SKALE chain to Ethereum with just a few lines of code and then rely on SKALE validators to run their blockchain, but they do not lose composability or interoperability as EVM is running within each SKALE Chain.”Jack O’Holleran, CEO of SKALE Labs
The SKALE network is designed to be a network of “sidechains”. These sidechains are created by Dapps who want to utilize the SKALE network to power their Dapps. Sidechains on SKALE rent space on the network (small, medium, or large) for a specified time (6, 12, or 24 months).
Sidechains collectively share security through a dynamic sharding mechanism that rotates validators across the network in a random way.
“The SKALE network uses a pooled validator model which allows it to leverage the security attributes of the entire network on behalf of each independent chain. Smart contracts running on the Ethereum mainnet along with a unique node virtualization and orchestration model helps ensure the network operates in a fully decentralized manner.”Jack O’Holleran, CEO of SKALE Labs
Staking on SKALE
SKALE token holders will be able to delegate their tokens to validators on the network.
Staked tokens will be locked, while staked, and token holders can choose to stake for 3, 6 or 12 months. Token holders who choose to stake for longer will have a higher reward rate (1.5x for 6 months, and 2x for 12 months) when compared to staking for the 3 month minimum.
Slashing penalties will not be in effect at launch, but the team expects slashing penalties to go into effect soon after launch.
All validators will receive equal rewards on SKALE with the exception of the multiplier for choosing to stake your tokens longer. This means that rewards are not proportional to the amount of tokens staked to validator. With this in mind, it would be beneficial for a staker to stake to a validator with lower stake.
On-chain voting will eventually control the economic parameters on SKALE Network, although it is currently not in place, and barriers have yet to be decided. In the interim, there will be a group of network representatives that support the voice of the validators, delegators, and the Dapp community within the SKALE ecosystem.
Special thanks to Jack and Stan for spending an hour with Staking Hub to answer all of our questions!
Thank you Gavin for co-hosting and thanks to our Staking Hub community for all of your wonderful questions.
Feel free to join our Staking Hub Telegram group if you haven’t already, and expect a Figment’s First Look article on SKALE to be released soon for a more in depth look into the network.