Updated on March 07, 2023 09:00 AM
Shiba Inu's mission has always been to warmly welcome new cryptocurrency users and instruct them on how a project is developed from the ground up. Let's take a closer look at their current craze, Shibarium.
Shibarium by Shiba Inu sets out to establish itself as a potent Layer 2 blockchain and a stage in the growth of the Shiba Ecosystem. A communal blockchain known as layer 2 by Shibarium grows and welcomes solutions, creativity, and security into the decentralised finance space.
The SHIB ecosystem tokens (SHIB, LEASH, & BONE) use this blockchain (L2), which is built on top of the Ethereum blockchain. Scalability, quicker transaction times, reduced costs, and a larger development framework are advantages of a Layer 2 blockchain.
Blockchain technology is beginning to become more widely used as Web3 develops. The price and transaction speed are two of the largest barriers to widespread adoption.
Shibarium's Layer 2 blockchain protocols can benefit a variety of business sectors, including gaming, web3 innovation, and Metaverse. This is mainly caused by the fact that current blockchain networks all have scalability and performance issues.
This layer attempts to function as a protocol on top of current blockchain networks, enabling off-chain transaction processing that is quicker, less expensive, and more private while still depending on the security of the underlying blockchain.
Shibarium can lessen the strain on the blockchain network and enhance the functionality of gaming and metaverse apps. A new decentralised metaverse and game environment that allows for decentralised player interaction and transactions, as well as player ownership, purchase, and sale of acquired digital assets, can be made possible with layer 2 blockchain technology from Shibarium and web3 technology.
The current Shiba Inu coin is based on the Ethereum network, which has scalability problems and a slow throughput while being a very secure and decentralised blockchain.
The main goal of the switch from Proof-of-Work (PoW) to Proof-of-Stake (PoS) on Ethereum was to introduce new token issuance mechanisms, a better data processing system, and new tokenomics that will benefit the chain in the long run. However, just because Ethereum has made the switch does not mean that scalability and low throughput issues are resolved.
As a result, layer-2s and sidechains continue to be crucial components of the Ethereum ecosystem. Let's quickly review layer-2s and scaling solutions before we get started since they are important to understanding why the Shiba community is constructing Shibarium.
A secondary chain constructed on top of a primary chain is referred to as a layer-2. When we speak to a blockchain as a whole, we are actually talking about a layer-1, also known as the main chain, basic layer, layer-1, and so forth. A layer-2 chain is one that cooperates with the primary chain, so to speak.
Scaling solutions, also known as layer-2s, are a technology that may improve a blockchain in a variety of ways but whose main objective is to relieve network congestion on the main layer. There are several scaling solutions, primarily:
Sidechains: Separate blockchains that can coexist with a main chain. One well-known illustration is Polygon, a sidechain compatible with the Ethereum Virtual Machine (EVM). It enables users and developers to move their projects from Ethereum to Polygon and vice versa while remaining independent.
State channel: Peer-to-peer protocols that let two parties conduct business outside of the Ethereum network and publish the outcomes on the blockchain.
Layer 2: A scaling technique that transmits transaction data in batches back to the primary blockchain after executing transactions on the layer-2s chain off the network. Optimistic and Zero-Knowledge rollups are two common instances of layer-2s.
In order to perform transactions on the Shibarium ecosystem, Shibarium will collaborate with Ethereum. Processing it on the Shibarium chain will need a sizable portion of the transaction load the Shiba Inu ecosystem now places on Ethereum.
The layer-2 will also remove tokens from circulation in order to restrict supply and support price growth. When tokens are delivered to wallets that can only receive tokens but not send them, also known as Dead Wallets, this is referred to as a token burning mechanism.
The SHIBArmy has long supported token burning as a strategy to lower the circulating quantity of the meme-inspired cryptocurrency and, if demand holds or increases, increase the value of circulating tokens. The Shiba Inu society will have consumed 410 trillion tokens by the end of 2021.
To yet, it is unknown whether hopeful rollups or ZK rollups will serve as the foundation for Shibarium's layer-2 technology.
At the time of this writing, Shibarium has not yet received an official release date. The project has been under development since April 2022, according to the official blog entry, but there have been no updates on its progress.
According to reports, the project will launch a public beta immediately after its release and then transition into the Testnet phase.
In other words, a lot of work is being done behind the scenes, but nothing is official as of yet. Developers will be able to create and test the tools necessary for user interactions on the Testnet, including wallets, block explorers, token transfer bridges, and more.
The following are some key advantages of using the Shibarium Layer 2 solution.
More throughput: Shibarium's primary objective—and one of the Layer 2 solutions on the market today's major value proposition—is to boost throughput for ecosystem users.
Reduced costs: It's anticipated that Shibarium would reduce or perhaps get rid of petrol fees. Smaller transaction costs will be levied, and the money collected will be utilised to burn SHIB.
Token utility: According to the information provided, this Layer 2 solution will provide a burning mechanism for SHIB, which is another crucial function of Shibarium. The enormous quantity of Shiba tokens is a major barrier to its conversion to a utility token. There are still too many SHIB tokens in circulation despite the fact that over 40% of the total supply has been burnt since the coin's debut.
DApp accelerator: Shibarium's potential involvement in the production of DApps is only one of the numerous advantages that are envisioned. Shiba Inu wants to establish itself as a leading solution in the field of decentralised apps, which are now the most talked-about subject in the blockchain industry.
Metaverse development: The Metaverse is hailed as the digital world's future and a new era in how we connect to the Web by its supporters. Shibarium will play a crucial part in the effort to grow the Shiba Inu in the Metaverse.
Shibarium was initially presented by anonymous developer Ryoshi, who created the Shiba Inu. "The boundary between an L2 and own blockchain is thin, I mean what is really the difference between Matic L2 [Polygon] and BSC [BSC has subsequently changed its name to BNB Chain]," Ryoshi said in a now-deleted blog post when he wasn't sure if it was its own blockchain or an L2.
Shibarium appears to be staying as its own layer-2, though, based on a message from devs. SHIB 2.0 won't exist as a result because it will continue to be linked to Ethereum. Users must utilise $BONE to conduct transactions on Layer-2.
The demand for BONE, the governance token of the decentralised exchange ShibaSwap, should increase as a result, in theory.
The idea of shibarium has been circulating since the beginning of 2021. Twitter is where we may find the Shiba community discussing how close Shibarium is to being finished. However, the prolonged delay has unnerved BONE owners.
The Shiba Project Lead at the moment is Shytoshi Kusama. Kusama claims that everything constructed on Shibarium will benefit from its lightning-fast transaction throughput, cheap fees, and other features.
The Shiba Inu ecosystem will use Shibarium, an Ethereum-based Layer 2 network. Bone, the Shiba DAO's governance token, will be used to pay for transactions on the network. According to the release, validators and delegators on the Shibarium network will also be rewarded with bone tokens.
Shibarium is a blockchain platform that enables users and developers to construct original applications for an already-existing blockchain infrastructure. Ethereum is one instance, which contains a built-in coin called ether (ETH).
The initial launch date for the Shibarium blockchain was September 2022. The engineers later acknowledged, though, that there was a technical problem that was the cause of the network's current latency. There is still no set debut date even though there have been indications and expressions of anticipation that it would happen soon.
The iconic Shiba-Inu memento will have a greater impact when burned with shibarium. More coins will be burned by the Shiba-Inu Memtoken Tier 2 solution than previously. Now, tokens will be burnt in addition to being charged a fee for each transaction made on the network.
Shibarium, a fork of the Shiba Inu token, was developed as an alternative to its forerunner in order to solve concerns like excessive volatility and a lack of a defined strategy for token use while also offering holders a more sustainable environment.
Shibarium was supposed to launch in Q3 2022, however because to development issues, it hasn't happened yet.
The Shiba Inu team just launched a blog called "Shibarium Invite," the first of numerous blogs that will discuss the Shibarium. According to this invitation, Shibarium is the solution to all of your problems.
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