Exploring Shibarium: Its Significance For Shiba Inu

Apr. 28, 2023
Exploring Shibarium: Its Significance For Shiba Inu

Understanding Shibarium: An Introduction

Shibarium is a forthcoming blockchain network that operates on Ethereum as a layer-2 (L2) platform designed specifically for Shiba Inu. The ultimate goal is transforming Shiba Inu, a meme coin, into a complete ecosystem with decentralized exchange (DEX), metaverse, and blockchain games like Shiba Eternity. The Shibarium project was proposed by Ryoshi, the anonymous creator of Shiba Inu, in May 2021 through a now-deleted blog post.

They plan to build a blockchain layer-2 solution on the Ethereum blockchain, reorganizing Shiba Inu as a stable ecosystem with multiple projects. Memecoins are cryptocurrency tokens based on humorous or animated internet memes.

Although the Shibarium developers have not yet announced a launch date for the project, an alpha preview of the SHIB metaverse, a project component, was on display from March 13 to 15 at SXSW 2023. The developers postponed the release originally scheduled for February 2023 so that they could launch a version free of errors after testing it in various phases.

The Meaning of Shibarium For Shiba Inu: An Overview

Shibarium offers several benefits, such as faster transaction processing, reduced fees, enhanced token functionality, and simplified DApp development. Despite Ethereum’s upgrade to a PoS blockchain via the Merge, it continues to face scalability challenges, despite its strong security features.

Shibarium, a PoS initiative, will assist Shiba Inu in scaling up while staying connected to the Ethereum blockchain. Shibarium is expected to unlock the potential embedded in the memecoin by stabilizing the value of SHIB and converting Shiba Inu into a value-added initiative with long-term potential.
Let’s explore how Shibarium will achieve this below.

Better Transaction speeds

The introduction of Shibarium as layer 2 to the Shiba Inu ecosystem is set to enhance the project’s capacity to manage significant growth by increasing throughput. Although the exact details on throughput are yet to be disclosed, it is anticipated that Shibarium will significantly enhance transaction speed.

Lower Fees

The issue of steep transaction fees has affected individuals using Ethereum, with some fees exceeding the actual transaction value. For example, a small transaction worth $10 may require a hefty fee of $50 worth of Ether (ETH). They expect that implementing the Shibarium layer-2 solution will significantly reduce or eliminate gas fees.

Complete Ecosystem

The Shibarium ecosystem is more than just a memecoin, as it encompasses a range of projects such as the SHIB metaverse, ShibaSwap DEX, and blockchain games. Users are anticipated to be attracted to the metaverse and games, while liquidity will be enhanced by the DEX.

Token Utility

The copious amount of SHIB available has impeded its growth, despite burning over 40% of SHIB tokens. To address this issue, Shibarium has introduced a native coin called BONE. Once Shibarium gains momentum, the network will compensate validators in BONE for securing and verifying transactions. Every transaction in the new ecosystem will use SHIB to manage its excessively inflated supply.

DApp development

Decentralized applications, or DApps, run their backend code on a decentralized peer-to-peer network. The memecoin, on the other hand, could not serve as a native coin for DApps. Shibarium aims to build a strong ecosystem incorporating a layer-2 solution in partnership with Ethereum, enabling the creation of DApps within the ecosystem.

Understanding The Functioning Of Shibarium

Shibarium is an upcoming platform that aims to reduce the burden on Ethereum’s blockchain by handling a significant number of transactions. This will lead to quicker throughput without compromising on security. Here’s how Shibarium plans to achieve this:

  • Handling Transactions with Retained Security: Shibarium will handle most network activities while retaining the security layer of Ethereum. This way, Ethereum can manage the remaining transactions without being swamped, leading to faster yet more secure transactions.
  • They require L2 solutions to address the network congestion and high gas fees caused by Ethereum’s base blockchain still struggling to handle a stream of projects, despite the boost in throughput brought by the Merge and the shift to PoS.
  • Mechanism to Burn Tokens: Shibarium will have a mechanism to burn SHIB tokens paid as fees for executing transactions. Coin burning involves sending tokens to one-way wallets that accept the tokens but never release them, resulting in losing coins forever. This mechanism will help stem the SHIB coin’s inflation and stabilize its price.

In summary, Shibarium will revolutionize the transaction process on Ethereum’s blockchain by handling a significant number of transactions while retaining security. Additionally, it will implement a mechanism to burn tokens to control inflation, ensuring stability in token prices.

Understanding The Coin Composition Of The Shibarium Ecosystem

There will be various digital tokens in the Shibarium ecosystem, each with distinct roles and names following the dog theme, resulting in a significantly different appearance from the Shiba Inu ecosystem.

  • SHIB: An ERC-20 token that fuels Shiba Inu, SHIB has existed since August 2020. Its price has fluctuated and never crossed the $1 mark per token.
  • BONE: A governance token on ShibaSwap, BONE is now also a utility token in Shibarium. The developers pay in BONE. They have capped the supply of coins at 230 million.
  • LEASH: With its supply limited to 107,646 tokens, holders staked LEASH to earn rewards. Rewards include xLEASH tokens that users can mint after unstaking.
  • TREAT: TREAT will pay validators, developers, and BONE after reaching a certain threshold as a reward token. It will also incentivize liquidity pools on ShibaSwap.
  • SHI: The Shibarium ecosystem will have the SHI stablecoin as well. SHI aims to counter and balance payments while staving off market fluctuations.

Exploring The Integration Of SHIB Metaverse And ShibaSwap In The Shibarium Ecosystem

The upcoming Shibarium ecosystem will feature a metaverse and decentralized exchange (DEX) with multiple use cases designed to attract users. Here are four subheadings highlighting these use cases:

The SHIB Metaverse:The metaverse is a 3D virtual space comprising 11 hubs, each with unique features. The WAGMI Hub, which focused on health and wellness, showcased the Alpha Preview version at SXSW 2023. The metaverse offers various use cases, including building digital businesses, incorporating real-life businesses, constructing commercial and residential structures, playing innovative games, and utilizing decentralized finance (DeFi) platforms. The metaverse will unlock 100,595 land plots over time.

Land Bid And Purchase:

Users can utilize the MetaMask wallet and pay with ETH to participate in the land bid and purchase process. Users can explore, discover, trade, sell, and buy items within the metaverse hubs. They expect the ShibArmy community to benefit from the dynamic world and rewarding participation.

ShibaSwap DEX:

ShibaSwap is a hard fork of the SushiSwap DEX, providing users with various functionalities. These include providing liquidity to earn BONE, receiving non-fungible token (NFT) drops, staking tokens to earn returns, swapping tokens, voting on their preferred cryptocurrency pair to receive BONE, and farming tokens.

Multi-Functional Use Cases:

The Shibarium ecosystem’s metaverse and DEX offer many use cases to entice users to engage with the platform. Cryptocurrencies are being utilized in several areas, such as business development and residential construction. Other popular applications include gaming, DeFi, and liquidity provision. NFT drops, staking tokens, token swapping, and voting on preferred crypto pairs are also gaining popularity. Finally, farming tokens is also becoming a common use case for cryptocurrencies.

Rida Fatima

News writer
An ardent wordsmith with a rich five-year background in delving into the realms of finance and cryptocurrencies. Alongside curating captivating blogs, Unique's talents extend to crafting imaginative and engaging content.