SKALE (SKL) – What Is It And Is It A Good Investment

Later on, they received backing from other investors such as Winkelvoss Ventures, Hashed, Hashkey, and Multicoin Capital.

O’Holleran, SKALE’s CEO, is a technology entrepreneur with a focus on blockchain and decentralized systems. He is an advisor at Aktana, which he co-founded in 2008. He began his career at Good Technology as an account executive. He worked there for two years before moving on to Motorola’s business development and product strategy division.

Prior to co-founding SKALE, Kladko spent many years pursuing a Ph.D. in physics. He has also co-founded a number of other businesses, including Galactic Exchange and Cloudessa.

What Is SKALE (SKL) Exactly

SKALE is described as an elastic network that aims to increase Ethereum’s scalability. In addition to increasing transaction capacity, the decentralized project intends to reduce latency and make payments as cheap as possible. According to the SKALE website, the company wants to facilitate people to build and run DApps in a “decentralized modular cloud built for real-world needs and configured to your requirements.” This focus on decentralization does not come at the expense of security. Users who build on this platform can run Solidity smart contracts thousands of times faster and for a fraction of the cost of the mainnet. Its platform is already used by projects such as games and content streaming services.

The SKALE network is dedicated to increasing the security and decentralization of Ethereum-based applications. Token holders on the SKALE Network are incentivized and rewarded for helping to improve the platform’s scalability and security by acting as validators. The SKALE Network was the first project to launch a token on the Activate platform of ConsenSys Codefi. This framework is designed to launch decentralized networks and allow customers to buy, manage, and use tokens. Activate was created to establish new standards for the allocation of utility tokens, as well as to guarantee that networks are fully operational as tokens are sold.

Hopefully, this approach will improve the image of the initial coin offering sector, which has been plagued by scams in recent years. SKALE plans for its token to be widely accepted and avoid any fraudulent behavior by introducing a token that meets regulatory standards. Ethereum is notoriously slow when it comes to verifying and authorizing transactions. Using the SKALE Network speeds up the process of verifying transactions on Ethereum. SKALE is substantially faster, with each chain capable of processing up to 2,000 transactions per second.

SKALE (SKL) Tokenomics

At the time of the SKALE Network’s launch, the total supply of SKL tokens was 4.1 billion. When it comes to the maximum supply, it is set at 7 billion tokens. According to SKALE’s white paper their token distribution is as follow:

  • 33% was allocated to validator rewards
  • 28.1% was designated for delegators
  • 16% was allocated to the funding team
  • 10% allocated to the SKALE Foundation
  • 7.7% to the protocol development fund
  • 4% to the core team pool
  • 1.3% to the ecosystem fund

SKALE is an ERC777 token that is simple to convert. You can exchange your SKALE tokens for Ethereum using a dApp like Uniswap. ERC777 is a token standard based on Ethereum that is fully compatible with the more widely known ERC20 standard. This means that any Ethereum app that supports ERC20 tokens can also support ERC777 tokens. SKALE tokens can be purchased with US dollars on Gemini, HitBTC, Coinlist, and Coinbase. Alternatively, you can use Huobi or Binance to exchange your Bitcoin or Ethereum for SKL tokens.

Is SKALE a good investment?

Scalability is one of the most serious issues confronting Ethereum’s network. During peak times, gas fees on Ethereum’s mainnet can reach $100 or more. With Ethereum’s scalability, the SKALE Network helps to solve these issues. Many investors are optimistic that SKALE will bring DeFi to the masses. SKALE Network has created an effective option for transaction fees on decentralized applications (dApps), allowing people to transact Ethereum tokens for a fraction of the cost.

Taking all this into consideration I do think that SKALE is a good investment. But there’s one thing to keep in mind. Ethereum’s Eth 2.0 upgrade should be available eventually, but it could take more than a year to complete. This upgrade will allow Ethereum’s network to scale without the use of another blockchain. This represents a significant risk factor for SKALE.

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