SKALE is a Layer-2 Ethereum sidechain network that creates a high-throughput, low-latency, low-cost environment for decentralised app (dApp) development. The network aims to address the scalability challenges of Ethereum by providing a modular blockchain network for dApp development.
SKALE operates using a hybrid architecture that merges the robustness of Layer 1 solutions with the scalability of Layer 2 solutions. Each SKALE Chain acts as a base layer, handling transactions independently without consolidating results to Ethereum's Layer 1. It uses a Proof of Stake (PoS) protocol and a unique SKALE Network Consensus (SNC) algorithm for horizontal scaling and supports full Ethereum Virtual Machine (EVM) compatibility for smart contracts.
SKALE's potential use cases extend beyond gaming to include real-world assets (RWA) and decentralised physical infrastructure (DePIN) networks. It supports sectors such as Web3 gaming and decentralised finance (DeFi) due to its high-performance, low-cost, and zero-gas features. Notable real-world applications include projects like Exorde and Nebula Gaming Hub.
SKALE was founded in 2018 by Jack O'Holleran, Stan Kladko, and Konstantin Richter, who sought to solve Ethereum's scalability issues. The project raised $17.1 million in private token sales in 2018. By 2024, SKALE achieved significant milestones, processing over 300 million transactions and saving $3.1 billion in gas fees. Its technology has evolved to incorporate the Levitation Protocol and a robust hybrid architecture, enhancing its scalability and compatibility with Ethereum.