A scalable and interconnected network, without sacrificing your security
SKALE addresses the issue of blockchain scalability through an innovative approach by introducing a hybrid modular blockchain network. As a result, SKALE can achieve scalability without sacrificing interoperability or security.
- Sidechains and Layer 2 networks are two of the most popular scaling solutions for blockchain, but they are not perfect.
- SCALE takes a unique approach that allows projects to enjoy the benefits of Layer 1 and Layer 2 blockchains.
- SKALE is modularity-enabled, highly scalable, and designed for businesses to thrive.
Blockchain was conceived as a network that facilitates transactions and other online activities between peers. Since its inception, blockchain technology has revolutionized various industries by cutting out middlemen, allowing for a more efficient, transparent, and fair operation.
However, the move of blockchain into the mainstream has raised awareness of the scalability issue. Too many people, too little bandwidth. As a result, transaction fees skyrocket and confirmation times increase. Therefore, it has become more urgent than ever to scale the blockchain, which refers to optimizing the blockchain network to handle the growing number of transactions and activities. The faster and smoother the transactions on the blockchain, the better the user experience.
Fortunately, many different feasible approaches are striving to address the scalability issue, driving the industry to grow healthier and faster. These solutions include layer 2, such as Optimism, sidechain network, Polygon, and a hybrid modular layer 1, SKALE. This article focuses on comparing different blockchain scaling solutions, briefly discussing their pros and cons.
Sidechain VS Layer-2
A sidechain is a sister blockchain that is linked to the main one. Many sidechains serve specific purposes, which means that they come in many variations depending on the functionalities and purposes for which they were created. It’s also worth mentioning that each sidechain has its own set of rules.
For example, side chains may adopt a different consensus mechanism than their main chain. This is to achieve a greener blockchain operation. More importantly, the sidechain network independently validates transactions and only periodically updates the mainchain, fundamentally increasing transaction performance. Therefore, such boosting of transaction capacity helps to scale the blockchains.
However, sidechains rely on their own security model, which is generally considered less secure. For example, hackers stole 801,601 MATIC tokens from Polygon before the vulnerability was fixed in December of last year.
Layer 2 solutions achieve scalability and increase performance while maintaining the integrity of the core blockchain. When it comes to scaling, Rollups play an essential role. To be more specific, they allow transactions to be bundled and done outside of the main blockchain, but still publish the transaction data at layer 1. This way you achieve greater transaction handling capacity.
However, layer 2 is not perfect. For example, one of the biggest blockchain issues is the lack of interoperability between different blockchains. Unfortunately, with Layer 2, that problem can be even worse since Layer 2 users are restricted to the protocols of their solutions.
SKALE: The Layer 1 Hybrid Modular Blockchain
To address the issue of blockchain scalability, SKALE introduced a modular chain network and a new Hub architecture. SKALE’s modular architecture is designed to break the capacity limitations of the monolithic Layer 1 blockchain network. Specifically, SKALE is not a single blockchain, but a network of many blockchains with attributes of scalability and interoperability. Incorporated from day one.
Having an unlimited number of blockchains provides unlimited capacity and can lead to integration and user experience issues due to a lack of proper cross-chain coordination. The solution provided by SKALE has already considered this problem. As a result, SKALE Chains will be classified as Hub Chains or Dapp Chains.
SKALE Hubs act as gas stations for Dapp chains, providing liquidity, exchange and market services to Dapp chains. Additionally, SKALE’s modular architecture offers an open network for partner services such as oracles, indexers, trust on/off ramps, and more, allowing them to implement the critical services needed to run Dapps on SKALEverse.
In particular, these Hubs will adopt DAO structures, and will be operated by people, companies, organizations and projects. Excitingly, community generated Hub submissions will launch in SKALE V2.
As it stands, instead of comparing the pros and cons of different scaling solutions to conclude, it’s more important to choose an ecosystem based on your own business needs. For projects looking for maximum flexibility in running and scaling their business without sacrificing decentralization and security, the modular nature of SKALE is probably a good fit.
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