• Wed. Jul 24th, 2024

What Is Shibarium Blockchain?

What Is Shibarium Blockchain?

Shibarium is a forthcoming layer-2 (L2) blockchain platform designed on Ethereum to cater to Shiba Inu. Based on expert analysis, this blockchain is set to change Shiba Inu, a memecoin, into a complete ecosystem.

The anonymous developer of Shiba Inu, Ryoshi, proposed the development of the Shibarium project in a now-deleted blog post that was published in May 2021. The project aims to create a blockchain layer-2 solution on the Ethereum blockchain.

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Notably, the growth will change Shiba Inu from a memecoin into a massive ecosystem that features a metaverse, a decentralized exchange (DEX), and blockchain games, like Shiba Eternity.

What is Shibarium blockchain

By description, memecoins are a type of crypto that consist of comical or animated internet memes. Because of their heavy reliance on pop culture and massive supply, the coins are mostly highly volatile and prone to lots of inflation. Shiba Inu (SHIB) boasts a total supply of 1 quadrillion, equivalent to 1,000 trillion. Nevertheless, the Shibarium portal strives to transform Shiba Inu into a stable and multi-project ecosystem.

Related: What Are Layer 2 Scaling Solutions?

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So far, Shibarium developers have not announced a launch date for this project. Nonetheless, an alpha preview of the SHIB metaverse was displayed at SXSW 2023 from March 13-15. Notably, the release was originally scheduled for February 2023 but got delayed because the team wants to launch an error-free version after extensive testing in multiple phases.

How Will Shibarium Work?

The Shibarium developers say that their platform will help remove lots of transactions from the Ethereum blockchain. This scenario with result in quicker throughput without making the security vulnerable. The strategy to burn tokens is expected to keep inflation in check.

The imminent Shibarium blockchain will work by handling transactions while maintaining the security layer of Ethereum. Since a majority of the network activities are handled by Shibarium, Ethereum will experience reduced transaction volumes that may plague it. In return, users will enjoy fast and secure transactions.

The low Ethereum throughput resulted in network congestion and increased gas fees to a staggering $80 per transaction before adopting proof-of-stake. The Merge increased the throughput of the network and significantly reduced the fees. Yet, layer-2 solutions are needed, since the base blockchain needs to handle multiple projects that result in slow speeds.

To eliminate inflation in the SHIB coin ecosystem and push its price higher, the Shibarium platform has a mechanism to burn the SHIB tokens paid as the fees for executing transactions on the network. This will help reduce the number of coins in circulation and stabilize token prices.

What Shibarium Means For Shiba Inu

Shibarium is touted to come with many benefits for the Shiba Inu ecosystem. Some of these advantages include lower fees, higher transaction speeds, smooth decentralized application (dApp) development, and enhanced token utility.

Contextually, the release of Shibarium will be a defining moment for all tokens within the Shiba Inu ecosystem. For SHIB, the blockchain will be another massive catalyst of extensive adoption. As Shibarium utilizes Bone Shibaswap (BONE) as a gas fee token, the introduction of the L2 platform will be a massive milestone for its tokenomics.

Apart from BONE and SHIB, Shibarium is expected to leverage an extra financial motivation tool, TREAT. The token is yet to be unveiled. Furthermore, Shiba Inu developers mentioned that all the assets needed for Shibarium beta testing will be freely available. Thus, any offer you come across about purchasing testing tokens should be considered an outright scam.

Although the Ethereum blockchain upgraded to a proof-of-stake (PoS) mechanism via the Merge, it still struggled with scalability, despite its huge security layer. Interestingly, Shibarium is also a PoS platform that will enable Shiba Inu to scale while ensuring that it is hooked to the Ethereum blockchain.

Related: What is Shiba Inu Used For?

Analysts say that Shibarium will stabilize SHIB’s value and change Shiba Inu into a valuable project with long-term prospects. Here are several ways in which Shibarium will unleash the potential integrated with the nascent memecoin.

Shiba Inu (SHIB): Shibarium Sees Wallet Addresses Rise

Low Fees

High transaction fees have plagued every user who executes transactions on Ethereum. At times the fees are higher than the amount transacted. For example, you may have to pay a $50 worth of ETH fee for a small transaction of $10 in value. In that context, the introduction of the Shibarium layer-2 solution might make the involved gas fees negligible.

Great Transaction Speeds

Introducing layer 2 to the Shiba Inu network, Shibarium will enhance throughput, allowing this project to handle considerable growth. Shibarium will increase transaction speeds significantly, although the users will need to wait for a bit more to enjoy precise information on throughput.

A Whole Ecosystem

Besides operating as a simple memecoin, the Shibarium platform will be extensive with many projects like ShibaSwap DEX, SHIB metaverse, and blockchain games. The games and metaverse will undoubtedly attract more users, while the DEX will offer increased liquidity.

DApp Development

Decentralized applications have backend code that executes seamlessly and precisely on a decentralized peer-to-peer network. Nevertheless, the memecoin could not work as a native coin of dApps. Shibarium wants to develop a massive ecosystem that features a layer-2 solution partnering with Ethereum. It will offer the technical ability to develop dApps within the network.

Token Utility

The huge supply of SHIB, despite the burning of over 40% of the tokens, has been a major hindrance to its growth. Shibarium resolves the issue by introducing BONE as the native coin. When Shibarium launches, network validators will get paid in BONE for validating and securing transactions. Additionally, in the new ecosystem, each transaction will consume SHIB. That is considered a great strategy to help control the majorly inflated SHIB supply.

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Kevin Moore - E-Crypto News Editor

Kevin Moore - E-Crypto News Editor

Kevin Moore is the main author and editor for E-Crypto News.