A lot has happened since the last financial crisis of 2008, we have the concept and growth of blockchain as an alternative to legacy systems.
In 2020,the arena of decentralized finance garnered a lot of interest as nations’ currency suffer devaluation,banks increase loan rate and pay less interest,the world is shifted towards decentralized finance.
2020 was also a tumultuous year,no thanks to the coronavirus,the fiasco of the USA and the ever increasing print of new notes in the name of stimulus packages but that is not all,we saw the abuse of centralized internet media like Twitter,Youtube etc ban voices,just few days ago,the president of the united state was banned from nearly all parts of the internet.
As we scramble for alternatives to these flawed systems, many would suggest decentralized alternatives,the arguments for such choice always center around the fact that they are permissionless and censorship resistance. While we laud them for such properties,we cannot turn a blind eye to the fact that they are slow,expensive to use and hard to set up.
In this piece,I seek to present Skale Network, an alternative to the growing pains of existing blockchains.
The problem of computation and storage
Blockchains are often lauded for the fact that their computations in done in the most decentralized manner but the design of blockchains in terms of computation and storage is wrong.
For example,Ethereum the leading blockchain platform is designed as a general computer,it prides itself in the fact that it can handle any form of computation,small programs(smart contracts or dapps) are built and deployed on it but this design is flawed as the computational need of App X is not the same with App Y or App Z etc,this flaw gives miners the leverage to be bias in which computation to process and which one to ignore,hence we see gas prices shooting through the roof.
Ethereum is still king
Let’s not dispute the fact that it has the first-mover advantage and has the greatest number of developers building on it, a look at the top 100 coins can confirm that,most purported Ethereum killers are also building bridges to Ethereum(the likes of Cosmos,Near,Avalanche,Polkadot etc).
Skale Elastic sidechains
Lets’ leave the fancy name,in simple terms, we are talking about getting a subset of the skale network to do your bidding for a certain period of time. The team at Skale Network built the skale network as a go-to platform of choice for those who need scalable transactions for their apps.
It’s simple, you build with every single piece of tooling available within the ethereum development ecosystem and you simply deploy it to the skale network with just a few lines of code.
The skale network can be likened to a cloud computing service like those of AWS or Google Cloud, you pay for computation as you deemed is required for your app.
Like web developers can build a website on their PC and choose which hosting plan is good enough to serve their customer requests,you can always upgrade your plan.
An elastic sidechain consists of a network of nodes which are assigned upon requests to different applications. A good example would be that of a security firm,upon requests a company may choose how many security personnel are sufficient for their need. A company(in this case a dapp) may choose the option of shuffling(random rotation) of personnel(in this case nodes) to prevent against the possibility of collusion.
Skale makes it possible for a project to have its own chain(a subset of nodes fully dedicated to serve it) unlike current Ethereum design that nodes serve the general network,this new design is both scalable and efficient.
The skale network has its own token(SKL token),an ERC 777 token and it serves the following
- Security deposit: Validators on the network are required to lock up some SKL tokens as security deposit in the pledge that they will act in good faith,this token is slashed when it acts in a manner not coherent with the network ethics and values.
- Delegation : Holders of the token who are not validators or do not have sufficient number of tokens or hardware/computing resources to be a validator can delegate their tokens to a validator,they also earn some rewards.
- Network utility: Apps developed on the network are required to pay a subscription fee for network usage, this fee is dependent on how much bandwidth, computation and storage such an app will use.
- Governance : The token holders can participate in on-chain voting in matters that affect the network.
Skale Network use cases
You can build simple to complex sidechains that support smart contracts,with this almost any kind of dapp with different computing requirements can be built