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October 4, 2022

How Does SKALE Offer Zero Gas Fees?

SKALE Network

One of the most significant issues surrounding blockchain technology is the concept of scalability. If the future is Web3, how can we ensure that blockchains are robust enough for mass adoption? SKALE’s unique architecture not only addresses Ethereum’s scalability issues but also skyrocketing gas fees when the Ethereum network is bustling, as SKALE offers zero gas fees to end users.

What is SKALE’s Architecture? 

SKALE is a modular blockchain network that serves as a storage and execution layer for Ethereum. Instead of providing a single Layer 2 blockchain, SKALE provides the resources for independent AppChains that are interoperable and customizable. Ultimately providing devs and users with individual Layer 2 capabilities on their own terms, and more importantly without gas fees. 

In other words, there is not a single SKALE blockchain, but an AppChain network that hosts many blockchains. 

SKALE, like all blockchains, has an integrated on-chain payment method which pays validators to validate blocks and secure the network. Most blockchains make end users pay validators via transaction fees which inhibits growth. SKALE, in contrast, enables the applications to pay validators directly which subsidizes the gas fees for users.

Zero Gas Fees Come From a Chain Subscription Economic Model

SKALE can offer zero gas fees through a subscription model similar to AWS for each SKALE chain.

A subscription fee model supports the resources needed to operate a chain on the SKALE Network. In this model, an entity like a developer, protocol, or consortium can allocate SKL tokens to Dapp-specific blockchains offering instant finality and a minimum of 397 TPS per chain.

For developers, this is a game-changer. They can define their SKALE chain by choosing needed protocols or additional security measures - and pay a flat monthly fee to host and develop Dapps on that chain. Developers can then adjust compute resources for SKALE chains as needed or simply sign-up for more SKALE chains if they want to scale their Dapps as they grow.

The subscription fee model per SKALE Chain unlocks easier go-to-market opportunities, higher adoption rates, and allows for free transactions for end-users. 

Validators Get Awarded Monthly Instead of Per Transaction

Validators in the SKALE Network receive monthly payments based on performance, rather than from individual transactions. Every node in the SKALE Network has the same potential to receive rewards based on performance metrics, including uptime, latency, and serving as a good actor. Validator rewards are then distributed monthly evenly among nodes.

Validators must meet a minimum bonding requirement, and validators can self-delegate or accept delegation from other token holders. Once validators stake SKALE tokens ($SKL), they get rewarded in SKL to secure the network.

Thanks to these validators, the SKALE Network can prioritize transaction speed, security, and scalability while providing end-users with zero gas fees.

How Does SKALE Differ from Other EVM Networks?

EVM-based blockchain networks such as Binance Smart Chain, Polygon, Fantom, and Avalanche require network transaction fees (gas fees) which cost the end-user money per transaction. 

These gas fees are calculated in the native token of that particular blockchain. For example, the Binance Smart Chain requires gas fees paid in $BNB, Binance’s native token. Similarly, Polygon requires gas fees to be paid in $MATIC, its native token. SKALE is different as users don't need SKL tokens to participate in the network.

What is sFuel?

SKALE can operate without the traditional gas fees associated with most blockchains because of SKALE FUEL, or sFUEL. Unlike Ethereum “gas,” sFuel is technically valueless and is considered a free gas token with no economic value.

sFuel acts as “gas” for the SKALE Network, but it is not considered a native token such as SKL. Since sFuel is valueless, it cannot be purchased or found on exchanges, and there is no cost for using sFuel for transactions. 

sFuel doesn’t just help address gas fees but also improves the SKALE Network’s protection against DDoS attacks and MEV. With a limited amount of sFuel, SKALE can limit transactions and prevent malicious attacks. 

More relevant details about how sFuel works:

  • sFuel can be obtained for free via a faucet.
  • sFuel is used to power all SKALE chain operations and transactions.
  • sFuel is chain-specific and is not transferable between two different SKALE chains.
  • sFuel is valueless and cannot be purchased.

sFuel is distributed by SKALE chain owners as needed, and every SKALE chain has its own standard of sFuel.  You can think of the sFuel Station as an aggregated and decentralized proof-of-work community location enabling any SKALE chain owner to provide access to that chain’s sFuel “faucet.”

Connect your wallet and fill up on sFuel at the sFUEL station!

Conclusion

The rise of Ethereum has been responsible for so much Web3 innovation, but gas fees have plagued the ecosystem for several years. The SKALE zero gas fee blockchain will prove integral to building the next generation of AI, Gaming, DeFi, NFTs, the metaverse, and beyond. While other blockchains contribute to Ethereum network congestion, SKALE offers real value and reduces congestion.

For true mass adoption, blockchains cannot be exceedingly difficult or expensive to use. Compared to other EVM blockchains, SKALE has much more to offer regarding scalability, security, and stability. However, the fact that SKALE offers zero gas fees may be the most revolutionary feature.

SKALE recently celebrated 312 million zero gas fee transactions with over $4.2 Billion saved in gas fees and counting!

How SKALE Chains Work and Allow Zero Gas Fees for Users
How SKALE Chains Work and Allow Zero Gas Fees to End Users

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