Shibarium: The Upcoming Layer 2 Blockchain Solution

What Is Shibarium?

Shibarium is a Layer 2 blockchain scaling solution—a secondary framework added on top of another blockchain to improve scalability and increase transaction speed—aimed at enhancing the workings of Shiba Inu’s host chain, Ethereum.

SHIB: https://etherscan.io/token/0x95ad61b0a150d79219dcf64e1e6cc01f0b64c4ce

Why Is Shibarium Being Launched?

Shibarium’s main goal is to improve Ethereum, Shiba Inu’s host chain, by increasing scalability. That’s not all.

Prior to his departure from the crypto space, Shiba Inu’s creator Ryoshi mentioned in a now-deleted blog post that he hoped for the blockchain solution to do the following:

• Speed up transactions by allowing more to occur simultaneously
• Lower transaction fees and, in some cases, eliminate them for those in the Shiba ecosystem
• Make Shiba Inu NFT gaming easier by facilitating rapid transactions
• Contribute to Shiba Inu metaverse implementation and applications
• Work as a foundation for decentralized app (DApp) development and other projects

How Will Shibarium Work?

Transactions will be divided between the Layer 1 chain (Ethereum) and Layer 2 protocol (Shibarium). That may sound like it would slow things down, but the opposite is true: Shibarium will handle a large portion of the load, preventing Ethereum transactions from overwhelming the system. The result will be a drop in network congestion.

Shibarium has a built-in mechanism which allows coin holders to burn tokens, removing them from circulation and boosting the coin’s price. It’s reported that Shibarium may charge a nominal transaction fee and use that fee to burn SHIB tokens. This would allow Shibarium to continually burn tokens and drive up the value of SHIB exponentially and sustainably.

For the uninitiated, blockchains have set amounts of tokens, so limiting them makes those that are left over more valuable. Burning works by sending tokens to wallets that accept but never release them, removing access to them forever.

Holders who burn their tokens will got benefit from lower transaction fees.

Benefits of Shibarium

The Shibarium blockchain will provide countless benefits. Here are just a few:

• Cost effectiveness – Shibarium gas fees will be unusually low, and users will have options to lower them further.
• Security – As a decentralized system, Shibarium is an ultra-secure option for sharing sensitive data without vulnerability to tampering.
• Transparency – Users will be able to see and keep track of transactions.
• Efficiency – Shibarium will process transactions at high speeds.

Among all cryptocurrencies, Ethereum is known to have abnormally high gas fees. Shiba Inu users feel the pinch, and only a Layer 2 solution can solve the issue, since SHIB relies on the Ethereum blockchain.

Increased efficiency will produce the sort of rapid, low-cost transactions necessary for gaming. Moreover, Shibarium’s efficiency as a scaling solution could make the SHIB ecosystem more appealing to large companies that must complete countless daily transactions.

How Will Shibarium Impact SHIB?

Only Shiba Inu will benefit from Shibarium. Currently, many people think of Shiba Inu as a meme coin—a cryptocurrency that functions as a meme, inspiring many to engage with it before they eventually lose interest.

Meme coins are generally considered a “pump-and-dump” option that holders purchase solely to wait until their value increases, in order to sell them for profit.

Since Shibarium will help stabilize and even raise the price of Shiba Inu through its burn mechanism, it will help to reduce the token’s meme status. History shows this is possible: Critics have often flung “meme coin” accusations at cryptocurrencies that later proved to be serious investments, such as Floki Inu.

Lower transaction fees could also benefit the values of tokens within the Shiba Inu ecosystem by encouraging more transactions (in general) and enticing new crypto traders.

Utility Token

The Shiba Inu ecosystem involves more than just one type of token. It also includes LEASH and BONE tokens. Notably, developers have chosen BONE as Shibarium’s utility token — the asset developers use to raise funds for new cryptocurrency projects.

Each type of token in the ecosystem provides different ways for holders to increase their return on investment. Holders can use ShibaSwap, Shiba Inu’s native decentralized exchange (DEX), to trade tokens, participate in governance, earn rewards and purchase NFTs.

Ecosystem Tokens

LEASH

With a total supply of just 107,646 tokens, LEASH is positioned as a special token for loyal supporters of the ecosystem, enabling holders to benefit from exclusive perks and access. Past examples have included incentivized $BONE rewards for liquidity providers on ShibaSwap, exclusive access to Shiboshi NFT minting, as well as early access to Shib: The Metaverse land sales.

LEASH: https://etherscan.io/token/0x27c70cd1946795b66be9d954418546998b546634

BONE

BONE is the ecosystem’s governance token, with a total supply of 250,000,000. $BONE was designed to allow the Shib Army to have its voice heard by voting on proposals via the Doggy DAO.

Furthermore, BONE is the foundation upon which we built our ecosystem’s proprietary Layer 2 network, Shibarium. With $BONE as the gas token, Shibarium will enable the community to use decentralized apps on our very own network that is significantly faster and less expensive than the Ethereum blockchain.

BONE: https://etherscan.io/token/0x9813037ee2218799597d83d4a5b6f3b6778218d9

TREAT

The Future of Shibarium

If Shibarium achieves its goals, it will have a monumental effect on the Shiba Inu ecosystem. Token values will stabilize and even rise and transactions will be faster and cheaper. Furthermore, it will create a more decentralized exchange to provide increased liquidity.

It’s impossible to guess the specifics of what will come from the ecosystem-related apps and services that develop with Shibarium as their foundation. Developers will be able to implement novel uses of the blockchain’s technology. However, there’s little doubt that such apps will make the ecosystem more robust.

Facilitating more efficiency for metaverse applications is one of the most intriguing possibilities for the scaling solution, one that could turn Shibarium into a force to be reckoned with.

Final Thoughts

Though many see Shiba Inu as a meme coin, it has already grown beyond its initial reputation. It’s now spread to become an entire ecosystem, with tokens like LEASH and BONE serving purposes SHIB couldn’t have handled alone.

Shibarium provides a chance to leverage and grow the ecosystem by offering faster transactions, increased security and more. Developers have put their all into making sure this eagerly anticipated blockchain solution hits the ground running.