Shibarium: The Upcoming Layer 2 Blockchain Solution for SHIB
Crypto enthusiasts can never rest; Sometimes it seems like new coins, blockchain solutions and similar developments are appearing every hour. By now, many crypto enthusiasts have heard a lot about a mysterious blockchain solution called Shibarium.
While the Shiba Inu developers haven’t yet released all the facts about Shibarium, they have shared more in recent weeks and the trickle of information is turning into a faucet. It will soon be a fire station. Read on to find out what we know about Shibarium, what we don’t, and what we’ll soon learn.
What is Shibario?
Shibarium is a layer 2 blockchain scaling solution, a secondary framework that is added on top of another blockchain to improve scalability and increase transaction speed. The goal is to improve the functioning of the Shiba Inu host chain, Ethereum.
Why is Shibarium launched?
The main goal of Shibarium is to optimize Ethereum, the Shiba Inu host chain, by increasing scalability. However, that’s not all.
Before leaving the crypto space, Shiba Inu creator Ryoshi mentioned in a now-deleted blog post that he hopes the blockchain solution will:
- Accelerate events by allowing multiple events to happen simultaneously
- It reduces transaction costs and in some cases removes them from those of the Shiba ecosystem
- Make Shiba Inu NFT breeding easier by enabling fast transactions
- Participate in implementations and applications of the Shiba Inu metaverse
- Serve as a foundation for the development of distributed applications (DApps) and other projects
Ryoshi also wanted the Shibarium blockchain to help change the common perception that Shiba Inu was just a meme coin and get people to see it as a valuable asset.
Shibarium can even lead to an increase in the price of the Shiba Inu (SHIB). That would be a welcome development for some as the value of the Shiba Inu is down 88% from its peak in the current bear market.
How does Shibarium work?
Transactions are shared between the Layer 1 chain (Ethereum) and the Layer 2 protocol (Shibarium). It may seem like it slows things down, but it’s the other way around: Shibarium handles most of the load and prevents Ethereum transactions from flooding the system. The result is a reduction in network congestion.
Shibarium has a built-in mechanism that allows coin holders to burn tokens, remove them from circulation, and increase the coin’s price. It has been reported that Shibarium may charge a nominal transaction fee and use this fee to burn SHIB tokens. This would allow Shibarium to continuously burn tokens and increase the value of SHIB exponentially and sustainably.
For the uninitiated, blockchains have a fixed number of tokens, so limiting them makes the remaining tokens more valuable. Burning works by sending tokens to wallets that accept them but never release them, preventing access to them forever.
Holders who burn their tokens are likely to be rewarded with lower transaction fees.
Benefits of Shibarium
The Shibarium blockchain offers countless benefits. Here are some:
- Affordable – Shibarium gas costs are unusually low and users have the option to lower them even further.
- Security: As a decentralized system, Shibarium is a very secure option for sharing sensitive data without tampering.
- Transparency: Users can see and track transactions.
- Efficiency: Shibarium processes transactions at high speed.
Of all cryptocurrencies, Ethereum is known for having unusually high gas costs. Shiba Inu users are feeling the pressure and only a Layer 2 solution can solve the problem as SHIB relies on the Ethereum blockchain.
The increased efficiency allows for the kind of fast, low-cost transactions needed to play games. Additionally, Shibarium’s efficiency as a scalability solution could make the SHIB ecosystem more attractive to large enterprises that need to perform many transactions on a daily basis.
When will Shibarium launch?
The developers have already implemented a private launch of Shibarium as part of the alpha testnet phase and say the private launch went well. The wallet tool is the main feature developed to prepare Shibarium for the full launch.
The Layer 2 solution also passed the public test network phase, which the developers deemed a success.
Investors – and hopeful potential investors – have been eagerly awaiting the final release date when Shibarium will be available on the Ethereum mainnet. The developers had been saying for months that it would arrive, but could not give an exact date because it was difficult to estimate how long development would take.
While an official release date is still unknown, a clearer picture is starting to emerge: Shytoshi Kusama, the lead developer of Shibarium, announced that the release is “coming soon” in a tweet to Twitter user @Hekadabighomie. Similarly, the Unification Foundation, the company that develops Shibarium, has also announced that the public beta of Shibarium will be available in the third quarter of 2022, which means that it will probably launch before September 30th.
How does Shibarium affect HIB?
Only Shiba Inu will benefit from Shibarium. Currently, many people consider Shiba Inu to be a meme coin, a cryptocurrency that serves as a meme and inspires many to interact with it before finally losing interest.
Memecoins are generally considered a “pump-and-dump” option that holders buy only to wait for their value to rise before selling them for a profit.
Since Shibarium helps stabilize and even increase the price of the Shiba Inu through its combustion mechanism, it helps reduce the meme status of the token. History proves this to be possible: Critics have often leveled accusations of “meme coins” at cryptocurrencies that later turned out to be serious investments, such as Floki Inu.
Lower transaction fees can also benefit token values in the Shiba Inu ecosystem by encouraging more transactions (in general) and attracting new crypto traders.
Shibarium utility tokens
The Shiba Inu ecosystem contains more than one type of token. Also includes LEASH and BONE tokens. Specifically, the developers have chosen BONE as Shibarium’s utility token – asset developers are raising funds for new cryptocurrency projects.
Each token type in the ecosystem offers holders different ways to increase ROI. Owners can use ShibaSwap, the original Shiba Inu decentralized exchange (DEX), to trade tokens, participate in the board, earn rewards and purchase NFTs.
While BONE is an auxiliary token chosen by Shibarium, SHIB is the original token of the Shiba Inu ecosystem. Unlike previous cryptocurrencies, SHIB allows users to hold trillions of tokens at a time. The supply is limited to 1 quadrillion – or 1,000 trillion – so it won’t run out any time soon.
SHIB entered the scene in August 2020 and was marketed as a competitor to Dogecoin. While the value has fluctuated, the token’s prices have never been close to even a single US cent. However, this does mean that Shibarium’s impact can produce exponential gains for investors.
LEASH, also known as the Doge Killer, has a good reputation. Just like a real belt limits a puppy to the end, this token limits liquidity to a maximum of 107,646 tokens. Originally a rebase token – a token intended to stabilize other tokens within the ecosystem – the developers eventually abandoned this purpose and decided to use LEASH for other uses. What LEASH lacks in liquidity it makes up for in other benefits. Cash holders can stake (or “bury”) LEASH tokens and enter them into an asset pool to earn rewards. This increases the overall value of the pool. Rewards include xLEASH tokens that you can exchange for SHIB after unstaking.