SKALE (SKL): A High-Performance Ethereum Scaling Network

SKALE (SKL): A High-Performance Ethereum Scaling Network

6 Min.

SKALE is composed of an indefinite number of blockchains, known as SKALE Chains, which function in unity with the Ethereum blockchain. Developers can tap into Ethereum's security to migrate their DApps to a SKALE Chain, allowing for improved speed and no gas fees.


Blockchains are frequently pushed to their speed and capacity limits due to the high user and developer activity volume. For the blockchain community to achieve its goal of creating a Web3-integrated future, it is essential to have a seamless user experience. To support the exponential growth of DApps on the Ethereum network, SKALE is one of the projects designed to tackle this pressing need.

What Is SKALE?

SKALE is a powerful amalgamation of Layer 1 and Layer 2 blockchain technology, allowing scalability and creating interconnected networks. Developers can take advantage of SKALE by migrating their projects from the Ethereum network to the SKALE-administered blockchains, experiencing an increased throughput with no gas fees.

SKALE was created in 2018 by Jack O’Holleran and Stan Kladko to enhance the blockchain world experience. They strive to make blockchain applications fast, convenient, and free for everyone.

SKALE enables fast and cost-free operation of NFTs, games, DApps, and more via its Ethereum Virtual Machine (EVM) compatible blockchains.

How Does SKALE Work?

SKALE utilizes the trustworthiness of Ethereum's Proof-of-Stake framework jointly with its unique consensus mechanism. By combining both mechanisms, SKALE can deliver fast, secure, and zero-cost transactions. This benefits developers building Web3 and DeFi projects by offering improved cost efficiency and performance than Ethereum alone, helping Ethereum become more accessible for global adoption.

Multi-Chains Usage

SKALE provides a multi-chain network with limitless possibilities. Through its EVM compatibility and interoperability, users can move their existing Ethereum-based smart contracts to SKALE chains without worrying about latencies or throughput. Moreover, developers can use SKALE chains to power smart contracts, storage solutions, and other gas-efficient roll-up contracts. The possibilities of what can be done with a SKALE chain are immense.

SKALE has made alterations to the EVM to provide more possibilities for smart contracts. This includes deploying SKALE chains that allow users to store larger files, such as sites, on the network nodes with a FileStorage smart contract. Interchain messaging is also possible, making moving tokens and NFTs across various SKALE chains feasible.

On SKALE, users can create their own highly configurable blockchain, customizing their own SKALE chain, consensus protocol, virtual machine, and other security measures to suit their needs. Alternatively, they can join existing community chains instead. The network is projected to expand its scope to incorporate blockchains beyond Ethereum.

Developers must pay a network subscription fee to use a SKALE chain, handled via a smart contract on the Ethereum network. This fee is distributed among validators, the SKALE community, and end-users, making it possible for SKALE to offer gas-free transactions.

What Is the SKALE Network?

SKALE utilizes a decentralized network of nodes to form a collective security system. Node owners can use a designated interface to withdraw, deposit, stake, or claim SKL (the platform's native utility token). Incorporating each SKALE chain into the wider network generates more capacity, and existing security resources are shared and pooled with the other sidechains.

The SKALE Network is comprised of SKALE Manager and SKALE Nodes. The SKALE Manager sits on the Ethereum mainnet, providing access to the other SKALE smart contracts and allowing users to create and destroy SKALE Chains.

Validators who stake several SKL tokens on Ethereum and meet the network's hardware requirements may join the SKALE network as a node. They can maintain one or multiple SKALE chains as part of their role. To uniformly decentralize the process, SKALE Manager assigns the node to a group of 16 peer validators to audit the node's availability and speed at the end of each network epoch. If the node performs adequately, it will be awarded SKL tokens.

SKALE Nodes employ a virtualized sub-node architecture to enable each node to operate multiple SKALE chains concurrently. The Virtualized Subnodes have been designed to be variable in size to provide the network with increased flexibility and operate the SKALE EVM, SKALE consensus, and inter-chain communication.

What Is SKL?

SKL is an ERC-777 token created to function as the native cryptocurrency and utility token for SKALE. It has a maximum supply of 4.27 billion tokens and is backward compatible with the ERC-20 standard. Through token-level delegation, SKL supports a secure and non-custodial staking mechanism where users can stake tokens from their wallets using a delegation key instead of locking funds in a smart contract.

SKL is a payment method used on the network, including SKALE chain subscriptions. Holders of SKL tokens can use them to stake as validators or delegators and earn rewards. Validators run nodes to validate transactions, execute smart contracts, and secure the SKALE network, earning SKL rewards from SKALE chain subscriptions. If holders of SKL choose to stake as delegators, they receive only a portion of the validators' rewards.

In addition, SKL grants token holders the right to participate in the governance of the SKALE network. Through on-chain voting, they can decide on SKALE's economic parameters and the direction of its future development.

What Are the Benefits of Staking SKL for the Network?

One of the main activities related to SKALE network utilization is staking SKL tokens.

To launch a new SKALE chain, developers must stake SKL on the Ethereum mainnet. This generates a new SKALE blockchain that enables the DApp to run smoothly. The DApp will be rewarded with SKL for staking on the mainnet, and that SKL will be given to the validators for verifying transactions on the chain. Validators are rewarded with monthly payments.

End-users benefit from accessing the blockchain infrastructure with zero gas fees, as validators are pre-paid to generate blocks, and therefore no additional compensation is needed.

Token holders of SKL can stake and authorize their tokens to validators who run nodes on the SKALE Network for various purposes, such as block validation, smart contract execution, and network security.


As DApp usage continues to rise, the potential for SKALE to exponentially expand its dynamic multi-chain network increases. SKALE has positioned itself as a valuable scaling solution for the Ethereum blockchain by providing high throughput, low transaction latency, and zero gas fees.

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