How SKALE’s Hybrid Modular Layer-1 Stands Out as a Blockchain Scalability Solution

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A network that’s scalable and interconnected, without sacrificing its security

SKALE addresses the blockchain scalability issue through an innovative approach by introducing a modular hybrid network of blockchains. As a result, SKALE can achieve scalability without sacrificing interoperability or security.

Summary:

  • Sidechains and layer-2 networks are two of the most popular scaling solutions for blockchain, but they are not perfect.
  • SKALE adopts a unique approach that allows projects to enjoy the benefits of both layer-1 and layer-2 blockchains.
  • SKALE is modularity-enabled, highly scalable, and built for businesses to thrive.

Blockchain was devised as a network that facilitates transactions and other online activities peer-to-peer. Since its inception, blockchain technology has disrupted various industries by removing middlemen, allowing a more efficient, transparent, and fairer operation. 

However, blockchain’s move into the mainstream has raised awareness for the scalability problem. Too many people, too little bandwidth. As a result transaction fees shoot up, and confirmation times increase. Therefore, it has become more urgent than ever to scale the blockchain, which refers to the optimization of the blockchain network to handle the increasing number of transactions and activities. The faster and smoother transactions are on the blockchain, the better the user experience.

Luckily, many different feasible approaches strive 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 analyzing their pros and cons.

Sidechain VS Layer-2

Sidechain

A sidechain is a sister blockchain that is linked to the main one. Many sidechains fulfill specific goals, which means they come in many variations depending on their functionalities and purposes they are built for. It is also worth mentioning that each sidechain has its own set of rules. 

For example, sidechains can adopt a consensus mechanism that is different from its main chain. This is to achieve a more eco-friendly blockchain operation. Most importantly, the sidechain network validates transactions independently and only periodically updates the main chain, fundamentally increasing transaction throughput. Therefore, such transaction capacity booster helps blockchains scale.  

However, sidechains rely on their own security model, which is usually considered less secure. For instance, hackers stole away 801,601 MATIC tokens on Polygon before the vulnerability was fixed last year December. 

Layer-2

Layer-2 solutions achieve scalability and increase throughput while still holding the integrity of the main blockchain. When it comes to scaling, Rollups play an essential part. To be more specific, they allow transactions to be bundled up and performed off the main blockchain but still post the transaction data onto layer-1. In this way, it achieves a higher capability of transaction handling. 

However, layer-2 is not perfect. For example, one of the most significant issues in the blockchain 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 hybrid modular layer-1 blockchain

To address the blockchain scalability issue, SKALE introduced a network of modular chains and a new Hub architecture. SKALE’s modular architecture is designed to break the capacity constraints of the monolithic layer-1 blockchain network. Specifically, SKALE is not a single blockchain, but a network of many blockchains with scalability and interoperability attributes built in from day one. 

SKALE hybrid modular layer-1

Having an unlimited quantity of blockchains brings uncapped capacity and might result in user experience and integration issues due to the lack of proper interchain coordination. The solution provided by SKALE has already considered this issue. As a result, SKALE Chains will be categorized as either Hub Chains or Dapp Chains.

SKALE Hubs act as service stations to the Dapp chains, providing liquidity, swapping, and marketplace services to Dapp chains. What’s more, SKALE’s Modular architecture offers an open network for partner services like oracles, indexers, fiat on/off ramps, and more, allowing them to implement the critical services needed to run Dapps in the SKALEverse.

Notably, these Hubs will adopt DAO structures, and people, businesses, organizations, and projects will be the ones to operate them. Excitingly, community-generated Hub proposals will launch on SKALE V2.

Final Thoughts

As it stands, instead of comparing the pros and cons of the different scaling solutions to conclude, it is of more significance to choose an ecosystem based on your own business needs. For projects looking for ultimate flexibility when running and scaling up their business without sacrificing decentralization and security, the modular nature of SKALE will probably be a good fit. 

Find more about SKALE:

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Disclaimer — This is a sponsored article. DappRadar does not endorse any content or product on this page. DappRadar aims to provide accurate information, but readers should always do their own research before taking action. Articles by DappRadar can not be considered as investment advice.

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