SKALE NETWORK 101 — UNDERSTANDING THE SKALE ECOSYSTEM

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Introduction

The advent of blockchain into our world has undoubtedly been a major turning point in our quest for global evolution; one which clearly has never been experienced in the history of the world’s technological advancement. In the last decade, blockchain has emerged to become one of the most influential innovations in modern technology, as this requisite tool is currently being leveraged to impact change in virtually every sector today.

However, even as blockchain is currently being touted as one of the most sought-after technology of this modern generation, it still isn’t devoid of its own bottlenecks. In recent years, the problem of low performance, poor usability, high cost of maintenance, among others, have been associated with most blockchains, and as expected, these problems appear to be having a direct impact on the level of adoption of this disruptive technology (blockchain) across mainstream sectors in our world today.

Ideally, blockchains are designed to be architecturally decentralized, similar to the Internet. In recent times, however, most blockchain-based systems have faced stumbling blocks in the form of challenges related to scalability, privacy, security, etc. Interesting, while several new methods have been proposed to mitigate these challenges, they appear to only be a quick-fix and not a sustainable solution to these problems.

CHAPTER 1 : The Emergence of Sidechains

One good example of a recent advancement which has been proposed to solve some of the existing problems on most blockchains, is the use of sidechains.

What are Sidechains?

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A sidechain (also called a child-chain) is a secondary blockchain connected to the main blockchain with a two-way peg to enable easy interaction between both chains. In most cases, sidechains may be designed to have their own consensus protocol, which could be completely different from the mainchain’s protocol. In essence, a sidechain can add new functionalities, and completely improve how a blockchain is being utilized.

To better explain what Sidechains are, I would love to adopt a simple description used in an article published on Hackernoon in 2018.

Think of the main chain as a highway where vehicles can travel, and sidechains as a series of roads built adjacent to the highway (cars can go faster here), and they can link to the highway when necessary. — Hackernoon, 2018.

In basic terms, sidechains are often designed to operate as stand-alone blockchains that work in a complementary fashion with another blockchain (mainchain), to often provide enhanced functionality and lower costs. Their functionality are often engineered to cover transactions, smart contract execution, and storage. Sidechains add value by enabling lower cost and higher throughput transactions compared to the slower, more expensive, but generally more secure Layer 1 chains.

While many might refer to sidechains as hardforks, it is important to note that although they appear to share certain similarities, they are totally different and operate with diverse concepts. Unlike with hardforks where modifications tend to directly affect the main blockchain, with a sidechain the original chain remains unaffected. Also, in some cases, sidechains can offer a specialized platform to carry out specific tasks.

For basic understanding, it is important to note that sidechains operate as a separate and independent blockchain ledger that is attached to the main blockchain ledger through a pegging mechanism, that allows assets to be interchangeable and transferrable between both ledgers.

  1. High level of complexity: Since the concept behind sidechains involves building independent blockchains of their own, most times they tend to be unsynchronized with the mainchain, even though they are connected to it. In most cases, this might cause problems when performing some transactions, for which tight synchronization is intended. A great example is when the two chains; the sidechain and the mainchain, support different types of assets, and thus cause or face potential compatibility problems during the transfer of assets.
  2. Security Vulnerability: Sidechains are solely responsible for their security, so they often tend to maintain a high level of security. Although most sidechains are often considered to be very secure, recent research have proven that many existing sidechains today might be prone to some security vulnerabilities. In recent years, there have been several reports of hackers discovering loop-holes in some side chains and exploiting them. For example, an attacker might transfer some assets from the mainchain to a sidechain, but right after can do a reorganization action before the corresponding assets in the sidechain are released and ready to be used. This then causes the assets in the mainchain to be unlocked and restored to their original state while the corresponding assets in the sidechain are released already and still available. This abuse scenario is called double spending.

CHAPTER 2 : General Overview of the SKALE Network

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SKALE Network is a Layer-2 scaling solution built for the Ethereum blockchain, primarily for scaling smart contracts. Unlike every other existing Layer-2 scaling solution, SKALE has been uniquely engineered to enable the creation of app-specific sidechains, which are secured by validator sets owned by the SKALE Network itself.

In essence, SKALE Network is an open-source, decentralized elastic blockchain network uniquely designed to scale Web3 applications on the Ethereum blockchain. For better understanding, think of SKALE chains as configurable, application-specific blockchains that exist one layer above the Ethereum blockchain. Developers get to rent SKALE chains, each of which act as a private Ethereum-compatible smart contract platform with faster block times and the ability to process more transactions per second.

Aside from the fact that SKALE provide superior functionalities compared to any other pre-existing sidechain mechanism, SKALE chains also run full-state smart contracts, support decentralized storage, execute layer-2 scaling, and run machine learning algorithms using the Ethereum Virtual Machine. In combination with Ethereum, SKALE Network is poised at enabling Web3 applications compete with traditional applications on a cost and performance basis.

  1. Byzantine Fault Tolerant:
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When a network is said to be fault tolerant, this simply means that it has been designed in such a way it would continue running even in the event of failure of one or more of its nodes. Byzantine failures are currently considered as the most difficult forms of failures to tackle in a system owing to the fact that most times, when they occur in a network, it is usually difficult to notice because the failed node can generate arbitrary data, some of which can make it appear like a functioning node. This means that Byzantine failures in most instances always confuse failure detection systems, which makes fault tolerance pretty difficult.

The SKALE network however, has been uniquely engineered to easily detect and correct Byzantine failures. The network maintains this level of fault tolerance by ensuring that the number of bad nodes does not exceed one third of the total number of nodes in the system.

2. Asynchronous Protocol

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The SKALE Network uses a model which is quite similar to that of the Internet; this is referred to as the asynchronous protocol. This protocol takes the latencies of every node in the network into full consideration. This helps to enable the network run smoothly because messages sent by nodes within the network can take an indefinite period of time to deliver.

By leveraging this asynchronous timing model, SKALE is able to ensure that virtualized subnodes still get to work efficiently even when the messages needed for them to execute actions do not deliver on time. It is worthy to note that this essential feature helps to prevent congestion on the network.

3. Threshold Signatures

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SKALE network leverages on BLS threshold signatures to enable efficient communication between chains and support randomness in node allocation. Threshold signatures are currently kind of the big deal in the blockchain space as they help to maintain true decentralization, fairness and an efficient consensus algorithm, which would ultimately improve the security of a network.

Threshold Signatures are decentralized multi-party signature protocol that includes distributed key generation, signature, and verification algorithms, all of which are integral when developing an efficient blockchain network.

  • Zero to Near-Zero Gas Fees: It is no news to any blockchain-savvy person that the problem of exorbitant gas fees is one of the major bottleneck rocking the Ethereum blockchain. The SKALE Network however, is poised at addressing this with their disruptive technology as every transaction conducted within the network has been engineered to always tend to zero — regardless of the size of the SKALE chain on which the transaction is being conducted — as long as the chain is below a specific resource threshold. Evidently, this zero to near-zero gas fee structure is a significant benefit in terms of building and operating decentralized applications as this would go a long way in helping to fast-track user adoption and enable developers build out profitable use cases without having to bother about the friction imposed by blockchain gas fees. SKALE’s ability to address this major bottleneck is proof that they are building successful decentralized solutions and promoting higher adoption rates on the Ethereum blockchain.
  • Virtualized Subnodes: Virtualized subnodes is the name given to every subnodes running within the SKALE Network. Each Elastic Sidechain in the SKALE Network is comprised of a collection of randomly appointed virtualized subnodes, which run the SKALE daemon and run SKALE consensus. Interestingly, what makes virtualized subnodes superior to nodes being run on other protocol, is that they are not restricted to one to one mapping between participating nodes in the network.
  • Random Node Selection/Frequent Node Rotation: On the SKALE Network, Validator nodes are assigned to elastic sidechains through a random process facilitated by a mainnet contract. The SKALE Network runs on a frequent node rotation process which helps to provide added security to the chain consensus. Nodes operating within the network are removed and added from one or more chains based on a non-deterministic scheduled. This process is usually determined by the mainnet contracts and its random assignment algorithms.
  • Containerized Validator Nodes: Every of the virtualized subnodes running on the SKALE Network are activated through an innovative containerized architecture that provides top-notch performances and optionality for decentralized application developers. The performance and flexibility achieved by the network is similar but much more superior to those seen on traditional centralized cloud and micro-service systems. These containers are sub-divided into several main components integrated via a dockerized Linux OS.
  • Consensus via Asynchronous Binary Byzantine Agreement (ABBA): The consensus model on which SKALE Network runs on is a variant of the Asynchronous Binary Byzantine Agreement (ABBA) protocol. This unique protocol is used to facilitate for block creation and commitment for each elastic sidechain on the network. One notable benefits of the ABBA protocol is that it is designed to exhibit robustness when subnodes on the network are experiencing downtimes. More information on the protocol can be viewed here.
  • Ethereum Interoperability: The SKALE Network has been designed to be fully interoperable with the Ethereum blockchain. This way, its security and execution layer is tied closely is with the Ethereum network. Also, every of the smart contracts that maintain node operation all execute on the Ethereum mainnet. In addition, the validator stakes and user subscriptions are also maintained and controlled by smart contracts running within the Ethereum mainnet.
  • BLS Rollup: Trying to wrap your head around the concept behind BLS Rollup might seem tricky but it is important to understand how this concept work, as this would help provide you with more understanding as you read through this course. The core idea of BLS rollup revolves around trying to make transactions smaller, because if you make transactions smaller, you make blockchain faster. BLS Rollups works by leveraging a cryptographic algorithm called “aggregated BLS signatures” to shrink ETH transaction sizes. Practically, a rollup can generally be described as a solution where transactions are published on chain, but its computation and results storage is done differently to save gas. The SKALE Network supports BLS Rollups through each of its existing sidechains to help improve transaction throughput and lower gas costs on the Ethereum mainnet.
  • Node Monitoring Service: The NMS (Node Monitoring Service) is responsible for tracking the performance of every node running on the SKALE network in real time. Tracking of performance among nodes on the SKALE Network is measured in both uptime and latency through a regular process which tracks each peer node and logs these measurements to a local database. It is important to note that these metrics will be averaged and submitted to the SKALE Manager, which will then be used to determine the payout to each node.

Being the first of its kind, SKALE intends to bring complete disruption to how traditional sidechains are being implemented through its Elastic Sidechain mechanism. Similar to traditional sidechains, Elastic Sidechains provide all of the benefits of traditional sidechains alongside the security guarantees of truly decentralized networks such as Ethereum. Elastic Sidechains are not only truly decentralized, but also keeps the UX advantages of traditional sidechains — such as easy setup and cost effective maintenance for developers, as well as an intuitive experience for end users who are interacting with the chain.

However, unlike traditional sidechains, Elastic sidechains have a critical advantage of being configurable so that developers can get to enjoy a wide range of other benefits on the chain including, storage, lightning speed, additional security guarantees, to mention a few. What makes this even more intriguing is that, every of these distinctive features can be adjusted by the developers to fit their business requirements and optimize cost.

The scalability of not only Ethereum, but basically every blockchain is one major problem currently rocking the blockchain space. The problem of scalability, is undoubtedly the biggest impediment to the mainstream adoption of blockchain networks, and it is quite evident that if this technology eventually get to reach mainstream usage and attract millions of new users, blockchain networks would simply be unable to handle the increased traffic.

The Ethereum blockchain for instance was designed to only support approximately 30 transactions per second. Even with the recent launch of the Ethereum 2.0, which is expected to provide improved scalability, there is no assurance that the full implementation of this upgrade would get to fully solve the scalability problem or every other problems faced on the Ethereum blockchain.

In order to increase the adoption of Ethereum-based applications, there is an urgent need for the blockchain industry to provide scaling solutions not just regarding transaction throughput but also the user experience. Scaling the user experience means providing solutions for transactions throughput on the network as well as for latency, connectivity to wallets, cost-effectiveness, seamless interactions between chains, and a wide-range of other vital activities.

The SKALE Network provides integral solutions to blockchain scaling which goes beyond addressing just the existing scalability problems but also putting security, cross-chain interoperability and transactions speed into full consideration. With the SKALE network being an open-source network of elastic sidechains users can now get to enjoy high-throughput and low-latency transactions without having to suffer high transaction costs found in most existing public mainnets.

What makes the SKALE network even more fascinating, is its ability to offer expanded storage capabilities along with direct interaction with the Ethereum mainnet, with all of these made possible as a result of an efficient and scalable transaction validation and security model.

Another major problem that the SKALE network intend to solve is the aspect of user experience. SKALE intends to provide users with the necessary infrastructures which includes: near-zero gas costs, faster commit times, and increased transaction throughput, required to get the best experience. All in all, the SKALE team is not just poised at providing the perfect scaling solution for the Ethereum blockchain, but are interested in fast-tracking its mainstream adoption, because the solutions to every of the aforementioned problems would not just benefit the developers alone but also the users, and this would go a long way in helping to remove the friction to mass adoption.

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The SKALE Network runs on the Proof of Stake (PoS) consensus and utilizes a work token. This makes the setting up of Nodes and staking on the network as simple as possible. The Proof-of Stake system helps to encourage proper behavior amongst participants on the SKALE Network. The Proof of Stake consensus mechanism allows each node to stake a predetermined amount of SKALE tokens and must abide by the rules governing the network in order to avoid being penalized (token slashing).

Some of the activities that could attract penalties on the network include:

  • Failure to properly participate in each assigned chain’s consensus.
  • Failure to maintain uptime and latency standards enforced by 10 network-agreed-upon SLAs.

CHAPTER 3 : Components of the SKALE Network

SKALE Network comprises of the SKALE Manager (located in the Ethereum blockchain) and a large set of permission-less SKALE Nodes, all of which play integral roles in the SKALE ecosystem. In this chapter, I would be providing in-depth information on the SKALE Manager, SKALE Nodes, and the roles they play in the SKALE ecosystem.

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The SKALE network basically consists of a large set of nodes which are being run by validators on the network. The basic function of these nodes, are to validate every transaction that is being conducted on each sidechains. However, it is important to note that every node running on the SKALE network is expected to meet certain standards before they become eligible to work on the network.

The SKALE Manager is in charge of scrutinizing prospective nodes who intend to join the network. Firstly, before a node is deemed fit to join the network, it needs to run the SKALE daemon which evaluates if it possesses every of the necessary network hardware requirements. After the completion of this stage, the SKALE daemon will then grant such node the permission to submit a request to join the network to the SKALE Manager. The request submitted to the SKALE Manager would include the required network deposit and node metadata. After these details get registered in Ethereum main chain by the SKALE Manager, the node will then be added into the network as a full node or fractional node.

One important thing to note is the difference between a full node and fractional node. The major difference between them is how their resources are being utilized. While Full nodes usually get all of their resources utilized for one elastic sidechain, the fractional nodes resources are used fractionally for multiple elastic sidechains.

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The SKALE Manager is an integral part of the SKALE network because it serves as a major entry point to all other smart contracts in the SKALE ecosystem. This smart contract manages the implementation of all actions carried out within the network, some of which includes: The creation or destruction of Elastic Sidechains, creation or destruction of Nodes, withdrawals, bounty issuance, to mention a few.

Node Creation/Destruction:

As earleir mentioned, in order for a node to be deemed fit to run in the SKALE network, it has to meet several hardware requirements. If every criteria is being met by the prospective node, then it would be allowed to submit a request to join the network to the SKALE Manager. The prospective node must then submit a standard network deposit in the form of staked SKALE tokens alongside vital node information such as a human-readable name, IP address, and public key. The SKALE Manager would then relay this request to the Ethereum blockchain, after which the prospective node will be added to the system as either a full node or a fractional node.

However it is worthy to note that, although both the full nodes and fractional perform similar function on the network, their major difference is that the Full nodes will have all of their resources utilized for a single SKALE-Chain while fractional nodes will participate in multiple SKALE-Chains, in a process also referred to as multitenancy.

After a node is created, it will have a validator group of 21 other nodes in the network randomly assigned to it at specific intervals. The network leverages the hash of the current Ethereum block number with the node’s name as the source of randomness.

The process of Node Destruction on the other hand, are divided into two phases. A nodes who intends to exit the network, is first expected to notify the SKALE manager of their exit and wait a finalization period to allow for other nodes to be appointed to their current SKALE-Chains. After this process has been confirmed and proper auditing has been done to this regard, the node will no longer be active and be allowed to withdraw from the network.

It is however important to note that users who remove their node immediately from the network without any finalization period, run the risk of losing their node’s initial deposit.

Sidechain Creation/ Destruction:

For the process of creating an Elastic Sidechain, users are usually required to select their chain’s configuration and submit payment to the SKALE Manager. This would enable them secure the necessary network resources required to maintain their elastic sidechain for the duration of time that they wish.

Also, users are usually provided with the option of selecting Elastic Sidechains with various specifications in order to enable them determine what would be suitable for them business-wise. The fascinating thing about creating an elastic sidechain on the SKALE network is that, as the network continues to evolve, it will eventually allow for users to specify the number of virtualized subnodes, number of signers, and size of the virtualized subnodes which will comprise their Elastic Sidechains.

The Node DEstruction process is quite similar to the Node creation process. In this process, a creation request has been received by the SKALE Manager, which would automatically prompt the creation of a new Elastic Sidechain. However, if the available resources in the network are not sufficient enough to support the creation of the desired Elastic Sidechain, the transaction will be canceled and the user who placed such request would be notified.

Elastic Sidechain destruction would only occur if a user’s rental deposit for network resources gets exhausted or the user intends to delete their Elastic Sidechain. However, in the case of exhaustion of network resources, the creator of the sidechain in question will be notified of their chain’s pending deletion and will be given the opportunity to add additional time to the chain’s lifetime if they intend to continue utilizing the sidechain.

Once an Elastic Sidechain’s rental deposit gets exhausted, the SKALE Manager would put it up for destruction. The destruction process will automatically transfer any crypto assets originating from Ethereum to their owners on the mainnet, remove all subnodes from the Elastic Sidechain, reset their storage and memory, and remove the Elastic Sidechain from the SKALE Manager, before the destruction process can be said to be completely finalized.

Bounty Issuance:

Bounties are issued to nodes in the network at regular intervals and are calculated based on two key factors which include: a node’s average latency and downtime across all SKALE-Chains. The number of SKALE tokens minted for the stipulated period are divided equally amongst all nodes which were participating in the network.

At the end of each reward period, the maximum amount of SKALE tokens that a node can receive in an ideal situation, is dependent on the number of inflationary SKALE tokens for that time period divided by total network resources utilized for that period. Also, for every token that are not issued to nodes as a result of poor uptime / latency, they will be issued to the N.O.D.E. Foundation.

CHAPTER 4 : SKALE TOKENOMICS

It is evident that for a blockchain network to thrive seamlessly, there is need for it to have a traditional token to fuel its ecosystem. The case isn’t different for SKALE as it is being fueled by a unique token, specially engineered to provide holders with certain privileges on the SKALE network including: the right to work in the network as a validator, the right to stake on the network as a delegator, the right to access a share of SKALE resources which would enables you to rent and deploy an Elastic Sidechain or Elastic Blockchain for a stipulated period, and a wide range of other privileges.

Below is a detailed description of some of the privileges which the SKALE hybrid token (with the ticker SKL) provides holders with on the network:

  • Payments: Users of the SKALE network will need this token to pay for several utility on the network including subscription access to use the elastic blockchain for their various decentralized applications.
  • Staking: The SKALE token provide holders with the right to stake on the network. This provides them with the opportunity to earn incentives for improving the network security.
  • Governance: With SKALE being a community-driven network, holders of the SKALE token will receive voting power through their tokens. Meaning token holders will be able to vote for certain changes on the network.

Highlighted below is a detailed overview of the SKALE (SKL) network token economics, to provide you with more insight on the SKALE hybrid token.

Ticker: SKL

Token Contract Address: 0x00c83aecc790e8a4453e5dd3b0b4b3680501a7a7

Total Supply: 4,140,000,000 SKL

Token Standard: ERC-777

Public Launch Allocation: 175,000,000 SKL

Public Launch Price: $0.03

For more information on SKALE Token Economics, visit here.

The SKALE Network Token (SKL) was allocated and distributed to be used for all continuous activities of the project in the coming future. Below is a detailed overview of how the SKL token was allocated for various project integral to the development of the SKALE network:

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  • Ecosystem Fund — 1.3%
  • Validators Reward — 33.0%
  • Delegation Allocation — 28.1% (Early supporters and public allocation)
  • Core Team Pool — 4.0%
  • SKALE Foundation — 10%
  • Protocol Development Fund — 7.7%
  • Broader Founding Team — 16.0%

For more information on SKALE Token Economics, visit here.

Many might wonder why the SKALE team didn’t opt for the popular ERC-20 token, widely known across the blockchain space, but it is important to note that The SKALE Network chose the SKL token to be on the ERC-777 standard because it’s fully backward compatible with the ERC-20 token and it also supports all ERC-20 users on the Ethereum blockchain and gives every participants full access to the Ethereum chain.

The SKALE Network Token (SKL) is an ERC-777 standard token and unlike the ERC-20, with the SKALE token, a delegator do not need to send the token to the delegation smart contract, but instead could simply share their secure delegation key with the staking provider, while storing the tokens in any cold or hot wallet of their choosing.

All-in-all, the SKL token being an ERC-777 token helps it provide much better security to the SKALE network upon staking and delegation, which makes it more superior to other ERC compliant token.

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The SKALE Network was officially launched on the ConsenSys Activate platform and this choice was as a result of a number of reasons. One of such reason being that ConsenSys has a proven track record in the way they deal with the legal and regulatory ambiguity that surrounds the utility token offerings, which decentralized projects use.

It’s not news to any blockchain-savvy person that Activate offers a fully equipped token sale and delegation platform that ensures that token launches are done fairly and in a fully decentralized manner. The SKALE Network leveraged on the KYC policy on Activate, and this helped to properly scrutinize the identity of participants on the platform who partook in the SKALE Token sale.

Founded in 2014 by Ethereum co-founder Joseph Lubin, ConsenSys is an industry-leading blockchain software company that develops infrastructure and decentralized applications (DApps) for the Ethereum blockchain. Consensys is poised at helping developers build next-generation networks and enabling enterprises to launch more powerful financial infrastructures.

ConsenSys currently serves millions of users from various regions across the world, ranging from financial institutions, to developers and retail users of the Ethereum blockchain. With Ethereum being the most trusted open-source blockchain, preferred by leading businesses across the world because of its easy-to-use tooling, top-notch security, privacy and a wide range of other features, Consensys is believed to be offering one of the most important and widely used infrastructure in the blockchain space.

Over the course of three rounds of private token sales and one round of public sales, the SKALE Network was able to raise a whopping 22M USD. Immediately after public launch, the SKALE Network token (SKL) got listed on several top-tier cryptocurrency exchanges, including Binance, Huobi and Uniswap.

Currently The SKALE Network token (SKL) is not only listed on several top-tier exchanges, but also listed on several crypto market data aggregators including: Coinmarketcap, Blockfolio and Coingecko, where the SKL price can also be monitored to keep SKL holders updated about the current happenings of the token.

CHAPTER 5 : Staking on the SKALE Network

Token Staking is an instrumental part of the SKALE Network, as it helps to maintain the general security of the network. In case you do not understand the concept of staking, it is important for you to note the definition below.

Staking is the process of actively participating in validation of transactions on a proof-of-stake (PoS) blockchain. This process involves locking your token in a wallet, in order to not just improve safety of the network, but the general performance. As an appreciation for keeping the network secure, the network usually reward Stakers with some incentives, in form of tokens.

Generally, there are two ways to stake on a decentralized network.

  1. Staking can be done through the use of a validator to stake. In this method of staking, the token holder would get to decide on the validator he intend to stake on.
  2. The second method of staking is to operate set-up your staking validator, be in charge of operating the staking validator, and stake your tokens and those of other token holders, if you choose to.

The rest part of this chapter would provide you with a step-by-step guide on how to stake on the SKALE Network.

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In order to start staking on the SKALE Network, you first need to own some SKL tokens. Early adopters were able to purchase SKALE tokens on Activate after registering and verifying their ID.

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Getting your SKALE tokens gets you a step closer to becoming an active participant on the SKALE network. Also, Stakers on the SKALE Network would need to get familiar with the Activate platform because it provides a seamless interface where they can conveniently claim, manage, and stake their tokens.

To participate and earn staking rewards for contributing to the SKALE Network’s security, you would be required to select a validator on which you intend to stake, input the amount you wish to stake, and the staking duration, then use your connected web3 wallet to submit your staking request

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Staking rewards are usually distributed to token holders all though the specified delegation period and disbursed at the beginning of every calendar month.

The amount of staking rewards a staker could earn depends on the several variables, including:

  1. The total number of tokens you staked.
  2. Duration of your delegation
  3. The rate of tokens minted by the protocol that is available for distribution to all nodes in the network.
  4. Total number of tokens staked in the network
  5. The total number of tokens in reward pool accrued from sidechain rental fees generated by Decentralized Applications (DApps) on the network.
  6. The percentage reward cut that your chosen validator choose to charge for delegation.
  7. Your decision to compound and re-delegate rewards.
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It is worthy to note that you can estimate your staking rewards by using the SKALE calculator.

At the end of each month, any staking reward you earn would be made available for withdrawal. Once you withdraw your rewards, you can choose to re-delegate them or transfer them for other purposes provided you successfully meet the SKALE Network Proof of Use requirements.

For more information on how to stake on the SKALE Network, visit here.

For more information and resources about SKALE Network, visit:

SKALE official website

SKALE Official Blog

SKALE Telegram Community

SKALE Twitter

SKALE GitHub

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Ima-Abasi Pius Joseph

Ima-Abasi Pius Joseph

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Research Writer ǀ Blockchain Enthusiast ǀ Petroleum Engineer ǀ Part-time Journalist