THE SKALE NETWORK

INTRODUCTION TO SKALE

The concept of blockchain has been an ever-increasing team in the world today ever since Satoshi Nakamoto (a person or a group of persons unknown till this day) invented the blockchain for the first cryptocurrency, bitcoin. It has continued to show great use cases in the world today. Everyone or at least, most people must have heard about the blockchain technology but what exactly is it? The blockchain is a kind of ledger that records transactions between two parties with the added benefit of having the total absence of a third party (usually a central authority). With the blockchain, you have many records of data that are time-stamped and immutable (they can't be edited). The data therein are packed as blocks and held together by cryptography (chain) hence the name, blockchain. Just see the blockchain and as a molecule of starch. The glucose units are the blocks (data) carrying time-stamped information. They are then held together by chains of which, in starch, are α-1,4-glycosidic linkages. There is usually the main chain of a long series of glucose and linkages. Many other chains veer off the main chain to form a net cluster but all are linked. When you change glucose for another simple sugar, say fructose, the structure of the molecule changes and becomes markedly different from the initial molecule. The same happens when the linkages are different as is with cellulose that contains the same glucose (block) but different type of linkage (chain) which is the β-1,4-glycosidic linkage, making it a completely different molecule from starch. This applies to the blockchain technology. The block (data) and the chain (cryptographic principle) are very unique for different blockchains and so determine the structure and function of the blockchain. There are very many types of blockchain. Public blockchains, amongst others, are the most widely used blockchains with transactions getting verified through consensus methods like Proof of Stake (PoS). They are open to everybody and ensure the growth of trust among users. They have no central authority and have security that is proportional to the number of nodes, present. They do suffer from slow transaction speeds as a result of the large ever-increasing number of users and also they have scalability issues. There is no room for more, making it difficult to scale. There's also the problem of consensus. The consensus methods on these public blockchains are tedious and use a lot of time. The transactions on them are usually accompanied by high transaction fees. The only thing is that these public blockchains are here to stay and are very much accepted. Work is being done to help sort out the various problems stated earlier (speed, scalability, high fees and consensus method). This is where SKALE blockchain comes in.

SKALE
SKALE blockchain can best be described as an open source, elastic blockchain network protocol with a main aim of giving developers the leverage to build very effective and ideal sidechains that are compatible with a ethereum thus allowing dApps to be more effective. What does this imply? You, as a developer, can get your own customized side chain. This setup is unique in that it helps users to bypass the negatives of ethereum. This setup is unique in that it helps users to bypass the negatives of ethereum while maintaining the very important positives. This is a very beautiful concept that is used across various fields of endeavor. Eliminating the negatives; promoting and maintaining the positives. SKALE, in essence, is connecting dApps to ethereum in a way or manner not seen before.

1. SKALE chains have short block times:
This is a very important attribute of the SKALE network. Block time is a very important factor in blockchain technology. When referring to cryptocurrencies and blockchain, you're actually talking about the time it takes to come up with a new block (we've discussed this part about how a block is actually data in the blockchain system). It is not a very straight forward process and involves a series of processes that culminates in the blockchain miner getting the solution to a hash, an encrypted output that is usually the basis of a blockchain network. Let's use the building blocks game or puzzle games as a case study. The block time will then be the time it takes to add a block to the already existing group of blocks or chains or the time to fit in the next puzzle. Miners live off this event and when the puzzle is solved, a new block is added with the miner getting rewarded in cryptocurrency. The block times for the popular blockchains vary with time. It is known to be about 10 minutes for Bitcoin and about 13 seconds for Ethereum. With SKALE network, we are interested in Ethereum. The block time for Ethereum which is 13 seconds looks fruity when compared to that of Bitcoin but it still doesn't remove the fact that 13 seconds, no matter how fast, is still a time lag. With SKALE network, this is not a problem. SKALE would make 13 seconds look like 13 days. This is because the chains on the SKALE network can perform blocked times in less than a second. We are looking at microseconds and milliseconds, where the hash is solved almost immediately and the new data file (block) is added to the already growing blockchain.

2. SKALE chains can reach 2000 Transactions per second (TPS).
We all love transaction speeds to be high. We know how angry or vexed we get at the gas station when the pump is slow or the steward just can't get his act together. You want to get into a drive-by restaurant and get your order ready in seconds. What about a transaction order at an online store? You want to get your ordered stuff in good time. Transaction per second (TPS) is used to describe the rate of transactions in the crypto sphere. The more transactions a blockchain can carry out at a given time, the better suited the blockchain is. Ripple has a transaction per second (TPS) of about 1700. Ethereum 1.0 can currently handle about 30 transactions per second (TPS) while Bitcoin can handle 4.6 transactions per second (TPS). Payment powerhouses like Visa can process about 1700 transactions per second. SKALE network chains will be able to reach up to 2000 seconds per second which is at least 66 times greater than Ethereum and over 430 times greater than Bitcoin. Ethereum are bringing speed to Ethereum.

3. SKALE chains for running Smart Contracts
With SKALE chains, you can run full-scale smart contracts. If you're looking for transactions that can be processed without any legal system enforcement or Central agency, then smart contracts are for you. Smart contracts are usually used when two parties want to carry out a transaction between themselves without passing through a third-party (usually and authority) while staying anonymous and also maintaining the integrity and security of the transaction. They have become the mainstay in cryptocurrency transactions. The plus is this is that the smart contracts are like time machines they execute themselves along the lines of the code embedded in them during the setup and the transactions can be tracked whilst remaining largely irreversible. With SKALE chain, you have no fear of a third party (censorship, authority, legal body). It is a full-time smart contract option.

4. SKALE chains support decentralized storage
This is a huge shift from centralized storage solutions to decentralized data storage. When you talk about storage it doesn’t get complete without talking about the ability to retrieve what was stored. If you cannot retrieve, then you cannot say you stored. A lot of things can be stored and we are at an age where they are lots of data and information files with huge importance and so people are spending a lot and looking for safe and secure places or options for data storage. The methods of storage these days are usually centralized but this comes with a lot of risk. There is the possibility of your data getting censored by the governing authority. It doesn’t end there as you may lose all form of privacy because you have handed most of your private details to the third-party storage company. Imagine what happens when there is a hack. Finally, this data could get mismanaged. All these dont happen with decentralized data storage solutions as people are inkling towards. Decentralized data storage information is shared across nodes with no single node having greater power or statue than the others. This means that when one node fails, millions of others will continue working such that the loss of that node is not felt. In a centralized storage system failure on the main node (central) will result in complete damage and possible hack. This system of multiple nodes also ensures that the system continues to run on the same speed when one node fails. This would not be the case with a central node failing. With SKALE chain, there is no central authority. Your details are kept private and you are free to retrieve and store data without seeking approval from a third party. This SKALE chain is highly decentralized.

5. SKALE chains can execute roll-ups
Roll-ups are relatively new to the blockchain setup. The first time roll-ups were mentioned was in 2018 by Vitalik Buterin. Here’s a scenario; users send their transactions which are then retrieved by relayers, off chain. A cryptographic proof which assures the validity of these transactions is then generated. Once this is done, both the transactions and the cryptographic proof are then sent to a smart contract that is on the Ethereum mainnet. There is a twist to this plot. The proof is verified on the mainnet contract and the hash is updated to represent the process. With this the transactions will be fully stored in the block but other valuables like the signature data would remain off chain as well as the necessary calculations and mathematics that is required to verify and execute the smart contracts on layer 2. This system of rollups would vastly increase the throughput of transactions. A transaction per second (TPS) of 15 can be increased over 300 fold. The SKALE network chains are able to execute these rollups and bring speed to dApps deploying on Ethereum. The truth is that these rollups do not come with certain limitations as other technologies but everything needed to ensure that the work properly is present in the SKALE chain.

SKALEs mission is simple. Developers want to build greater apps on Ethereum. There are lots of ideas moving through the minds of ingenious people but they are all scared of the negatives of building on Ethereum. So what do they do?? Do they go to the less effective and less secure blockchains that might not be as good as Ethereum or do they just flow with the tide? Take every negative and positive, not minding which one outweighs the other, but still build on Ethereum, nonetheless. The transactions, though secure, would still be slow. Can they wait minutes hours or even days for transactions to get confirmed? Would it be worth it? Lets assume that they agree to wait. Will they agree to pay the high gas fees? This should be too difficult to bear. Most developers stay determined and build their dApps but find out the hard way that it is difficult to maintain and much more difficult to keep users happy. Something needs to be done. Thats where SKALE network comes in. It will be providing a moral boost to the developers by bringing Ethereum to millions of users worldwide. We've been able to see a few things and concepts associated with SKALE network. We will then look at the basic features of SKALE blockchain; security and decentralization. Before we go into the mechanisms by which SKALE network achieves this, let's look at security and decentralization in detail.

Security
We use metal doors for our house is. We store our money in the bank. Security is a major concern for humans. We go to great lengths to protect ourselves from harm. Here, we are not talking about security from the physical or political realm. The security we are talking about here is the one that is IT related. Information technology has its associated risk and the aim of many projects is to remain as secure and private as possible. Databases where digital data are held need to be protected from cyber attacks or data breaches. Telecommunication agencies need to guard against interceptions from unauthorized interceptors. Computer systems have hardware and software components that need to be protected from physical test or malware respectively. In the internet, one needs to guard against fraud and viruses that might attack through the web. Applications (dApps) are not left out as a whole lot of work is done to fix weak points so as to avoid breaches to the app function. We also look at clouds or corporate networks that are also susceptible to attack. Endpoint security comes into play here. All in all we see that security and privacy is a very important in a lot of cases. SKALE is very particular about providing security on its chain.

Decentralization
Decentralization is also another very important concept. Most processes and systems are centralized. It doesn't matter if it is in the political, educational, financial or technological sector. A central body which is usually authoritative and having censorship attributes reigns supreme over all the other activities. Decentralization is not about that. It removes power from a central body. The power is distributed among the members of nodes. This makes things a lot better. If a central body fails, the entire system collapses. This is not possible with decentralized systems. If one node fails, other nodes fill in and continue as there is no single point of failure. With decentralization, a lot of ups come.
What features are responsible for the security and decentralization of SKALE network? Is it a product of chance or design? We would look at basic features of the SKALE chain in depth.

1. Byzantine fault tolerance:

The SKALE blockchain is Byzantine fault tolerant. Let’s take a scenario where someone is ill and goes to the hospital to get a clue of what the problem is. Doctor A brings out the diagnosis as malaria and Doctor B brings out diagnosis of typhoid. Same person; Same illness; Two diagnostic results. This is a way to explain the Byzantine fault. Let’s say there is a problem with a system (e.g. a failure at a node) but this failure shows different appearances to different users who are there to observe. It creates a problem. You can only solve a problem based on the results of the diagnosis but having various results for the same fault is actually bad. In some serious cases and there might be a failure on a node and the diagnosis would claim it is in order. These mixed signals are bad in that the system wouldnt know the next line of action to take with regards to the faulty node. Byzantine failures are terrible and can prevent detection systems from knowing that there is a fault. SKALES elastic blockchain is Byzantine fault tolerance and thank god against such issues. All it does is take a consensus report on the reliable nodes/node runners to make the right decision, bearing in mind that all info can be tracked.

2. Asynchronous protocol

The SKALE blockchain is an asynchronous protocol. To put this into context we need to understand what a asynchronous communication is and how it differs from synchronous. In asynchronous system everything is in sync. The sender of the message (data) and the receiver must be in sync. There is a steady stream of transmission. You can refer to it as real-time communication where each phase of the communication must end before the next phase comes. The sender sends the data and the receiver has to respond before another sequence starts. This differs slightly from the asynchronous model. Here there is no necessity for synchronization between the sender and the receiver. The data is sent discontinuously unlike the study nature of the synchronous models. The previous message sent by the sender must not be replied or acted on by the receiver before the sender can send another mail. With this the latency that nodes have coupled with network issues are recognized and taken care of, removing timeframe for message delivery and receipt. This reduces a load of expectation on the nodes as they can now send at the expected spin with the setting mechanism setting place to resend some messages that have not been responded to. This is a great model and one that shows how the internet works.

3. Threshold signatures

The SKALE blockchain uses the threshold signatures. This is a digital signature that helps maintain effective interchange communication. It is just like in your normal real-world situation. You are part of a group (party or DAO) and then this group chooses a group of people as executives. Most of these executives are usually referred to as the executive committee (exco). This subgroup is then entrusted with the authority to make decisions on behalf of the main group. This can now be brought to the digital part. A subgroup of signers are created to make signatures on behalf of the main group. As is the case with most threshold signatures, the members of this subgroup are usually anonymous. At SKALE, threshold signatures are used for voting. The process is rather complex and ends with the SKALE manager making the verifiable public key (PK) available for the public. These public keys (PK) must have been created earlier from the joint Feldman Distributed Key Generation (DKG) and issued to subnodes. SKALE network uses Boneh Lynn Shacham (BLS) threshold signatures to run the system.

4. Leaderless consensus

Most systems of the world work with leaders. The leaders are usually set in the point of leadership by the other members of the group. The leaders have a large degree of power to authorize decisions. This is known for more centralized systems that must play to the rules of these authorities. In the case of many protocols (including decentralized protocols), these leaders are responsible for proposing a block that the network can run a consensus on and apply. This is a bit different from largely centralized protocols where the entire process is carried out by the leader. In SKALE consensus protocol, there is no leader. It is a purely leaderless protocol. There are many visualized subnodes on the network and any of these nodes can propose a block to be added and it still doesn’t end there. When the blocks to be added are chosen, there is a voting process where the blocks to receive the majority of signatures would then be chosen and the order, executed on the blockchain. With this, there is no chance for autocratic behavior and every subnode is in with a chance of being able to propose a block.
All these properties and show that SKALE consensus protocol offers systemic protocol that envisions through the centralization and promote the vision of being a high-throughput consensus network.

WHAT SETS SKALE APART?

It is natural that people, animals and things will always move towards things that make perfect sense for them. When there is a choice to be made you look to make the better choice based on the free conceived parameters you have set, to be able to make that choice. There are various networks in the blockchain space. This chapter tries to look at what sets SKALE apart. Why should I use SKALE? What added benefits do I derive from being on the SKALE network? When is the best time to get on board SKALE? To what extent would SKALE network transform my dApp as a developer? All these and more will be addressed in this chapter.
As stated earlier, SKALE network is an execution layer often referred to as Layer Two (L2) that can be connected to a Ethereum to help dApp developers build their dApps and leverage on the prime benefits of layer 2 which are low fees, high speeds and high-throughput for transactions. SKALE is an elastic sidechain. Elasticity is a very important theory and property in physics to stop it affects their ability of property of a substance or material to increase in shape with increasing pressure or load but still retain the ability to get back to its original shape and size. We want a side chain that can expand to accommodate increasing number of users or increasing blocks of data as is the case with Ethereum. Normally, people would gravitate towards a side chain that has elastic properties to accommodate increasing activity on the blockchain. To add to that the SKALE network is decentralized. There is no single point of authority as there are many nodes and this eliminates the risk of a single point of failure. On the SKALE network, developers can deploy elastic sidechains that have a high throughput and low-latency. There is high compatibility between these sidechains and the Ethereum Virtual Machine (EVM). The Ethereum Virtual Machine (EVM) is a software platform based on the blockchain that enables developers to create or develop decentralized applications (dApps). The Ethereum Virtual Machine (EVM) is quite easy to use and doesn't require massive coding skills. Furthermore these elastic sidechains of SKALE work by some virtualized subnodes that are selected from a bigger subgroup of note in the network. These nodes are used by the sidechains for computation and storage. A lot of information is available to the sidechains from tiny resources within a node to the entire resources across all the notes. Each chain has the asynchronous property as well as being Byzantine fault tolerant. This is massive for developers who wish to leverage on SKALEs elastic sidechain and it doesn't end there. The SKALE Network combines the mechanism with a payment system as a result of the SKALE token enabling its incentiveness. Unlike other sidechains that show great promise by using a small set of validator nodes, SKALE network uses a pooled validation mechanism. It is no news that the smaller the number of validator nodes the greater the risk to ruin the network integrity. You are basically gaining lower latency and high-throughput at the risk of losing everything. Is it a risk worth taking? With SKALE, a high number of validators is used. Large validator node networks offer premium security models because there is no single point of failure. Various nodes can be assigned duties randomly and these assignments are rotated amongst the nodes. No node is irreplaceable as any node can be used for instructions and consensus within the blockchain (or side chain). This gives the individual sections protection from the resources you can find within the entire network. This security feature doesn't end there. Validators, like in other staking processes, must stake a certain amount of value to the SKALE network. This source of value comes in the form of SKALE tokens. Aside staking purposes, these SKALE tokens can also be used to provision and resource the elastic sidechains. Staking is done on the Ethereum mainnet via smart contracts which are also responsible for managing certain tokenomics and examining nodes to see those that are doing well and those that are malfunctioning. It's an all-round process that ensures the security and integrity of the staking process as well as the network itself. Furthermore the SKALE network is custodial by nature. The Boneh Lynn Shacham (BLS) signatures are used to great effect by SKALE to make custodial ownership and use, possible within the network. A host of other mechanisms like deposit boxes also help make this possible with this you have all the security you need whilst enjoying the benefits of layer 2. The Ethereum mainnet is used for staking and top operations while other activities remain on the sidechain. This is excellence at its very best to help bring out optimum performance unlike the other layer 2 projects that try to also use the mainnet for verification and other security actions. Non-custodial layer 2 solutions will also be supported in the nearest future. With these, we can see what sets SKALE apart. SKALE would help increase the acceptance of apps, bringing end to problems by offering decentralized solutions. You see improved scalability on their Ethereum mainnet, greater transaction throughput, premium user experience brought about by a higher transaction per second (TPS), lower latency, top notch connectivity to some API-based wallet, hassle-free messaging between chains and low fees. Thats all the blockchain problems solved with the top-notch elastic sidechain that is SKALE.

THE SKALE MANAGER

The SKALE manager is the second component of the SKALE network. The first component is the SKALE node which is permissionless. The SKALE manager is situated on the Ethereum mainnet and is like the point of entry for the entire smart contracts that you can find on the SKALE network. The role of the SKALE manager is actually huge and a lot of activities in the SKALE ecosystem is dependent on the SKALE manager. These activities include creation and destruction of the elastic sidechain/ creation and destruction of nodes as well as bounties and withdrawals. This is massive to be honest. It is basically the backbone of the SKALE ecosystem. We would take a look at these one by one and see how the SKALE manager handles all these and more.

1. Creation of Nodes: This is a principal role of the SKALE manager. All nodes are created by the SKALE manager but for any nodes to be selected as a SKALE ecosystem node, it must first of all run the SKALE daemon where it will undergo evaluation to see if it meets the hardware requirement of the network. This is a very important step. Once this step is passed by the node, the node will be granted permission by the daemon to submit its request to the SKALE manager, asking to join the network. Information like the public key port and IP addresses among others would be part of the information to be submitted as well as the deposit required by the network. Once on the Ethereum mainnet, the node would then be added to the ecosystem. It would either be a fractional node or a full node. This will determine how the nodes will function. The full node will be committed to one elastic sidechain while the fractional notes will be used in multiple elastic sidechains. A big group of peer nodes would be assigned to the new node (when it is created). The group would carry out a series of evaluations and pass it to the SKALE manager to calculate bounty reward due to the node.

2. Destruction of Nodes: Just as a note can be created by the SKALE manager, it can also be destroyed. An existing node will first signal its intention to exit and wait for the process to be finalized. After this waiting period the node would become inactive and initial state of the network will then be withdrawable. If a node doesn't go through this process and exits before the finalization, bounties for the node would not be paid as it would be classified as a dead node and the rewards will be taken out of the chain, on schedule. This process is a very simple process that takes place at the SKALE manager's contract.

3. Creation of Elastic Sidechain: We have seen how the SKALE manager can create and destroy nodes. Now, we would look at how the elastic sidechain can also be created by the SKALE manager. A potential consumer, first of all, starts by selecting the elastic sidechain configuration while paying the SKALE manager for the period they desire to rent network resources that are needed to maintain their elastic sidechain. The users are given options to select sidechains according to the budget with a minimum of 16 virtualized subnodes. These subnodes could be used in 1/1 (large), 1/16 (medium) or 1/128 (small) of the nodes resources. With time more changes can be made to the user's initial choices. The cost of these network resources are calculated constantly to help give account of the condition of the network as well as the load on the system. Whenever the SKALE manager receives this request to create the elastic sidechain, it will be created and the creator would be provided with the endpoint. If the resources needed for the creation are insufficient to cover, the entire process will be cancelled and the notification will be sent out to the user. Virtualized subnode shuffling is introduced as an added security measure.

4. Destruction of Elastic Sidechain: The SKALE manager create; the SKALE manager destroys. This is not rocket science. For destruction to happen the rental deposit of the consumer, paid for the network resources must have been depleted or a signal for destruction sent in by the user. A notification is sent out to the user if the network resource is about to be depleted. This is to enable the user make a decision to either renew or let the destruction continue. Once depleted, SKALE manager can commence destruction of the elastic sidechain. Once certified for destruction, all assets will be transferred to the owners on mainnet and the elastic sidechain will be removed. Rewards will be sent to the user who submitted the request to destroy the chain but not after all memory and storage have been reset on the elastic sidechain. It is well known that the user submitting a request to destroy an elastic sidechain would receive a reward. This reward is usually bigger than the cost accrued during the destruction transaction. Nodes also get to share in bounty received at the end of each event. The minted tokens are shared equally amongst all participating nodes that were in the network before the event began. This chain is calculated easily and is usually based on the average brought up by the middle 16 peers of the total 24. The top four (4) and the bottom four (4) are left out of this to prevent certain issues like collusion. If at the end of everything there are tokens that are not assigned to nodes, these tokens will be sent to the N.O.D.E. foundation. Creating and using the SKALE elastic sidechain is very easy because of the configurable nature. This SKALE network is very compatible with the Ethereum Virtual Machine (EVM) so developers wouldn't have to go out of their way to get tools. They would use the same tools they use on Ethereum mainnet. Tools like truffle and smart contracts languages like solidity. Whats keeping you from building your own elastic sidechain on SKALE??

SKALE VIRTUALIZED SUBNODES
We know that the SKALE elastic sidechain is made up of nodes and subnodes. There is a separate group of nodes, however. This group is very important to the entire SKALE ecosystem. These are referred to as virtualized subnodes. Every elastic sidechain has a collection of these virtualized subnodes that help run the very vital SKALE daemon as well as the consensus. They carry out these functions in addition to mapping between nodes participating in the network. Just like in every structure, the architectural design makes this possible. This containerized virtualized subnode design allows each node to execute a lot of elastic sidechains simultaneously. Take a look at the image below

The container model shows how each virtualized subnode participates in the various elastic sidechains. The structure will offer a lot of attributes like elasticity, configurability and modularity. Below are some of the services you find encapsulated in each container.

1. Scale admin service: The admin service on SKALE is very similar to the admin running various projects you know. Their jobs cut across various fields from a database admin who looks after the total aspect of a database to network admins who are basically engineers involved in computer networks. The SKALE admin service is the interface facing the user for virtualized server nodes with the SKALE manager. With this SKALE admin service interface, the node would be able to identify the elastic sidechains that are participating in. They will also be able to carry out functions like depositing, withdrawal, staking and claiming of the SKALE tokens. It is like the mirror to SKALE network ecosystem, giving insights to the user or participating node. The virtualized subnodes are usually chosen randomly to take part in the SKALE elastic sidechain. This means there is no interface you use to join or leave the elasticity and why you're within the network.

2. Node monitoring service: This is the second virtualized subnode on the SKALE elastic sidechain. The Node Monitoring Service (NMS) differs from the SKALE admin service and so serves a different no role. It is run on every SKALE node and helps to bring about the performance tracking of the various peer nodes for the node in this scenario. It's like checking a nodes activity with the surrounding nodes in the same peer group. This helps evaluate the up time and latency via a normal process that signals each peer node and helps to increase the readings in a local database. Once the elastic sidechain event comes to an end, the mean of the measurements and readings are then taken and submitted to the SKALE manager on the Ethereum mainnet. The SKALE manager, in turn, uses these metrics as a deterministic measure to check the payout due to each node on the elastic sidechain. This is a very important subnode. This systematic approach is very important to the entire setup of the SKALE elastic sidechains.

3. Virtualized Subnode Orchestration Service (VSOS): The Virtualized Subnode Orchestration Service (VSOS) helps to arrange node competition as well as storage resources in a bid to exemplify virtualized subnodes. This is done using a constantly changing created virtualized subnode image comprising of three basic units. These are the SKALE daemon, the catchup agent that aids syncing an elastic sidechain and the transfer agent responsible for interchange messaging. There are cases when virtualized subnodes fail even though rare. When this happens it's up to the Virtualized Subnode Orchestration Service (VSOS) to revive or recreate that subnode. Also cases where the setting virtualized subnotes have been decommissioned, this specific service helps to facilitate the release of previously allocated resources. These virtualized subnodes form an integral part of the containerized architecture.

GOVERNANCE AND EXTENSIONS ON SKALE

Governance

Governance on the SKALE network is akin to governance in real-world scenarios. The SKALE community is a decentralized community. This success and progress of the community and the SKALE mission is reliant on the decentralized governance model where there is ample representation of all SKALE holder groups within their ecosystem. We know that the primary talking points on the SKALE network are wrapped around security, quality of service, operations as well as the continuous progress of the SKALE network. This type of governance model would help and facilitate the various contributors to the N.O.D.E. foundation to reach critical decisions that will help achieve those talking points. The N.O.D.E. foundation was set up by the SKALE Labs who will hand over certain deliverables like assets, money, power and IP to the Foundation. When this is done the next face comes. The handover/ release of this control by the Foundation to a decentralized governance setup during network launch. On-chain voting (that is supported by network representatives that are elected as well as the Foundation council) would be used to great effect in keeping the economic parameters of the SKALE network in check. All these would ensure that on-chain voting is efficient and controlled. In effect it is fair to say that the governance or skill is a Delegated Stake Model (DSM). There are two ways a stakeholder can participate in voting. They either vote themselves, or they hand over the voting power to other stakeholders. The governance model on SKALE is very simple and makes use of the majority vote. This governance model is also responsible for the strength and viability of the SKALE elastic chain.

SKALE Extension
We have learnt so much about how the SKALE system works but with SKALE there is always a good plot twist. The nature of the network architecture leaves plenty of room for extensions to be easily added to the network. The sole aim is for improve the total usability of the network in ways that are above ordinary. For now, the SKALE network has two extensions that have their different functionalities. The first is a storage extension while the second is a communication portal. We shall take a look at both of them and see the benefits they will bring to the set up.
a. Storage extension: Storage is a very important concept and we would never ever run out of stuff to store. Delving into the storage sphere is bound to open up a lot of new users who might be particular about storage. The initial storage capacity was good but it has been modified by the SKALE team. With a few changes here and there on the existing Ethereum Virtual Machine (EVM) so as to enhance the storage capabilities of the SKALE elastic sidechain. In order to do this, certain tweaks have been made on the blockchain and these include increasing the block sizes so as to increase the size of data that can fit into it. With that, data storage capabilities have been improved. It's even better to say that uses within the network can actually cut their files into bits and save these bits one by one on a node and at the end of everything the files would still be arranged as they were before the split. A lot of raves are going on about decentralized data storage solutions where data is stored across nodes instead of a single centralized unit that can crash if it becomes a target determined hackers. Decentralized data storage solutions offer security because all nodes or a large majority of nodes need to be successfully attacked for the system to crash. This decentralized storage model also ensures scalability. There is no single point of storage so that the more the nodes, the more space to store data. This would allow regular expansion as the case may be. With SKALE storage, files can be removed to ensure that the network can reassign the storage space. This would be great when fully functional.
b. Interchain communication: When you talk about interchain communication you are literally talking about communication between two chains. As with the case with SKALE elastic sidechains you are talking about communication between two elastic chain entities. This is made possible on the SKALE elastic chain by the use of certain group signatures. Elastic sidechains on SKALE can now verify that a block has been signed and is ready to be committed to another elastic sidechain. With this, crypto assets can be moved from the elastic sidechain A to elastic sidechain B. This is largely made possible by smart contracts, the individual elastics sidechains and the agent responsible for bringing about these interchain relay messages. The messages are relayed just as your regular mail messages but with a few more technicalities. Elastic sidechain A sends a message to elastic sidechain B. The messages will stay on Elastic sidechain A (ESA) outbox until a random agent picks it up and sent it over to Elastic Sidechain B (ESB) box. Once Elastic Sidechain B (ESB) proves that the transaction actually went through, the transaction would be forwarded to a destination smart contract. A deposit box is used in case there is a deposit from a major blockchain like ethereum to the elastic sidechain. All in all these exclusions are both very useful with widespread use.

USE CASES FOR SKALE NETWORK
There's a saying that we become successful by solving other people's problems. Every successful venture out there is living off the solution it must have found for another individuals (or group’s) problem. SKALE network is such a great elastic blockchain that could rule the years to come because of its use or potential use in the whole lot of industries and walks of life. Here we take a look at the various use cases for SKALE elastic sidechain. We know that as an execution layer (Layer 2), its importance cannot be overemphasized. Youre looking at negligible gas fees, higher throughput and faster transactions. All these are aimed to improve user experience for users using dApps on Ethereum. Heres a look at some sectors where SKALE elastic sidechain would cause tremendous positive effects on.

1. DEFI: Decentralized finance is the talk of the day. It is basically finance without centralized financial institutions. These institutions include banks, exchanges among others. They are however reliant on smart contract. With DeFi, users can spend, save, invest, trade, lend and gain access to production markets. Many of these dApps for DeFi are built on Ethereum. This would imply that there will be high gas fees as a result of the degree of transactions Ethereum. This would make lending and other transactions more expensive. Trading a small token would have you seeing gas fees that might be greater than the value of the trade. With SKALE Layer 2, most computations would take place on the sidechain, reducing the cost of the transaction.

2. Games: Gaming is a very lucrative venture the world over. From mobile games like PUBG to normal card games, the need for better user experience cannot be overemphasized. Many of these gaming dapps are built on Ethereum. The lag time on Ethereum mainnet may affect in game performance. Recently, games have started seeking layer 2 solutions. This is to ensure normal in game speeds, in game purchase and general user experience. These games could be battle games, games for strategic thinking, board and card games as well as collectible games where you can collect enough NFTs and also create them. SKALE elastic sidechain will also bring scale to the Ethereum mainnet and help games that have boarded on its execution layer. Blockchain game developers have issues with slow speeds and high-in game transaction fees also when users play games like that, it is a terrible.

3. Media and advertising: A lot of firms are looking at the prospect of bringing the media to blockchain. Blockchain provides so many benefits. We know that media and advertisement have gone digital making it more readily available to more people but it has its own problems. How can you protect your work and how can you monetize it to make profits. Blockchain can transform the media in many ways including allowing for very small payments which ordinarily wouldn't be possible. The issue after this is not just building on blockchain but being able to overcome the challenges of layer 1 which include high fees, slow speed and very low transaction throughput. With SKALEs layer 2, there would be a decentralized media streaming, censor-resistant socials as well as permissioned adds. All these and more would leverage the SKALE network elastic sidechains to reap the benefits of layer 2.

4. Decentralized e-commerce: A lot has been said about decentralized finance but decentralized commerce comes with its own goodies. DAOS and LAOs that serve as governance models are mostly built on blockchain. You can now register businesses, trade, exchange and work on productivity apps. All these can leverage on SKALEs elastic sidechains and to provide users with optimum performance that comes with higher speeds, lower gas prices and a greater transaction experience.

5. Internet of things: These are things that usually have some software sensors and other technologies through which they can connect and transfer data with other devices over the internet. These things have come up with the ever-increasing pace of technology. A lot of concerns however plague these IoTs and the major ones are privacy and security. It is true that government agencies are moving to try and secure this by bringing up certain standards that apply internationally. The truth of things is that blockchain technology would help solve the problem of security and privacy. With SKALE elastic sidechains, you'd have privacy, security with the added advantage of speed, negligible fees and premium user experience. The world would move fast the adoption of layer 2.
6. HealthCare and Others: There are many small sectors that can gain from using SKALEs elastic blockchain. You look at the healthcare sector and the amount of data to be stored as well as transactions to be carried out. Privacy is also an issue as most clients want to remain anonymous after taking sensitive test like HIV and the rest. Their data will be safe and intact on the blockchain. Records will be stored properly with SKALEs elastic sidechain and having enough room to spare. There is no better way to improve the healthcare sector than bringing it to blockchain. The real estate sector is the same thing to this ever-growing industry is one rocked by many transactions daily all these will be moved to the blockchain. Digital identity is another growing field in the world today. I've also looked at the effect that blockchain would have on the voting process. Large numbers of voter details would be stored. Fundraising is another area to be looked at. The power of skills elastic sidechain should be found across all walks of life. Let's join in this frenzy.

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