The blockchain and crypto sphere is arguably one of the most important innovations of the 21st century. Blockchain tech is in the limelight, with many enthusiasts believing the tech is taking over the world. However, many schools of thought are of the notion that most of its proposed use cases can be easily achieved with smart databases.
In line with this long-term argument, Christine Perry, VP of SKALE Labs, throws more light on why SKALE Network and the Ethereum mainnet are a worthy choice for developers. In a two-part article series, she points out why developers need an EVM-compatible platform that is securely connected to the Ethereum mainnet blockchain. Simply put, she argues why developers need the Ethereum mainnet and SKALE elastic sidechain network connection.
Blockchain tech is indeed an innovative tech, but it still has a long way to go in terms of actual use cases. The tech is expected to completely revolutionize top spheres like finance, supply chains, mining, manufacturing, document authentication, gaming, prediction, betting, and others. Furthermore, decentralized tech is the driving force behind innovations like tokenized assets, open finance, programmable assets, public and private keys, decentralized ledgers, and so on. Just like the internet, mobile phones, WiFi, cloud computing, etc, totally transformed major spheres, blockchain is sure to do the same in the near future. To blockchain enthusiasts, Web 3 is the next big thing, and blockchain tech is expected to play a major role in its development.
In anticipation of #ETH2 launch @christineRPM wrote an article on use cases for the #Eth / #Eth2 execution layer. There are hundreds of use cases, in the series we focus on several👇
— SKALE Network (@SkaleNetwork) November 19, 2020
Highlighted Use Cases
Below are several use cases brought to life by combining SKALE Network and the Ethereum mainnet.
1. Decentralized Finance (DeFi)
The DeFi space is one of the top aspects of the blockchain sphere. Interestingly, 2020 has been dubbed the year of DeFi. 2020 Q3 alone recorded a massive over 1000% increase in the total value locked in DeFi protocols.
A perfect illustration of why the DeFI explosion took place is the transition from telephone to SMS to WhatsApp, email, and other means of messaging. In the 1990s, people could carry out maybe a minute of a telephone conversation for $1. The advent of SMS drove the cost of conversing much lower. So, with as little as 20 cents, people could send a SMS. This further gave way to WhatsApp and other means of communication, which basically drove communication costs down to practically zero. Now imagine transaction costs today dropping to the SMS level or even down to WhatsApp levels. That is less friction for next to zero costs. This is what DeFi protocol aims to bring to life.
2. Collectible Games
Another major use case of the Ethereum mainnet and a sidechain is the area of collectible card games. Interestingly, beyond the virtual gaming world, collectible game cards have value in the real world too. This is majorly due to their limited supply. The more scarce a collectible card is, the higher its value. In December 2019, a Gods Unchained card sold for 210 ETH, approximately $30,650 at that time.
A developer is currently creating an angel battle game on SKALE. The game cards will be able to carry out a diverse array of functions including new powers, armors, more strength, etc.
3. Online Gaming
Blockchain technology has revolutionized online gaming as we know it. Most gaming platforms, however, have to utilize layer 2 solutions (elastic sidechains) like the SKALE Network. One of the major games on the SKALE Network is a strategic war game quite similar to Final Fantasy and World of Warcraft.
Making use of sidechains like SKALE will improve throughput and speed as well as decrease gas costs on the platform.
4. Content Streaming
Another innovative use case for blockchain technology is in content streaming. This is quite important because of the current distrust associated with centralized streaming media outlets. Blockchain content streaming will also help content creators bypass censorship by countries and other agencies.
SKALE also boasts of a number of developers making use of its censorship-resistant platform to create music for listeners worldwide.
5. Trustless Prediction and Betting Sports
Another fast-rising use case of blockchain tech is the prediction market or sports betting sphere. This sphere is also one of the main users of Ethereum elastic sidechains. According to Perry, VP of SKALE Labs, as adoption and usage on a betting or prediction platform increases, there is usually a troubling increase in gas prices. Due to high gas fees, most betting and prediction market platforms have to transition to one or more elastic sidechains. These sidechains provide these platforms with several benefits like reduced gas fees and faster transaction times.
6. Privacy and Data Custody
Although data privacy isn’t a particular dApp, it is, however, a crucial aspect of the decentralized tech space. It is a major differentiating feature of the centralized and decentralized tech space. A company on SKALE is currently working on a project directed at facilitating privacy and trustless data custody. Ensuring data privacy and custody on Ethereum is expensive and impractical. Hence, the need for a sidechain like SKALE. The sidechain will ensure data privacy and custody is cost-effective, fast, and secure.
The above-listed use cases make the Ethereum mainnet and the SKALE Network a compelling choice for developers. Together, they create a platform that will drive the creation of new applications, protocols, projects, etc.
Interestingly, due to scalability issues, Ethereum has disclosed that the Genesis Layer of its 2.0 update might go live on December 1, 2020.
Previously, we covered the SKALE mainnet launch on June 30, 2020.
At the time of writing, ETH was trading at $542.70, with a market cap of $61,463,117,098 and a 24-hour trading volume of $15,480,844,419.
Find out more about the SKALE Network on the Altcoin Buzz YouTube channel.