What Is Shibarium? Shiba Inu’s EVM-Based Layer 2 | Notum
Apr 20, 20239 min read
Shiba Inu is currently one of the largest blockchain projects that has attracted a lot of attention in the Crypto world. To become less dependent on somewhat outdated protocols (such as Ethereum), the project eventually received a layer 2 blockchain solution in Shibarium. In addition, its main goals include increasing the speed of transactions and reducing costs. Since Ethereum has low scalability and high gas fees, the project could not reach its full potential. Now the above problems will be solved by offloading part of the transaction data in layer 2 while maintaining a connection to Ethereum.
This article will help you learn more about Shibarium’s blockchain, how it works, and the status of the Shiba Inu coin after Shibarium’s launch.
What Is Shibarium?
Shibarium is a long-awaited blockchain layer-2 solution that aims to solve several problems that exist in Ethereum now. Even though Shibarium’s launch took place only in March 2023, this solution was proposed by the creator of Shiba Inu (who remains anonymous) back in 2021. Moreover, many experts predict that it is thanks to the launch of Shibarium that the Shiba Inu cryptocurrency can take off this year.
As already mentioned, Ethereum does not allow the project to be fully realized, however, network security and infrastructure are important to the project. That is why Shibarium's framework is still built on the Ethereum blockchain. "But an L2 solution, it would be faster and offer lower transaction fees than what is currently obtainable on Ethereum.”- CoinCodex.
It is also important to understand that Shibarium is not a traditional blockchain project, but an Ethereum add-on (its blockchain slot) that runs on top of Ethereum. Its main essence is to redirect most of the SHIB transactions to itself, and not rely only on Ethereum. This is what will lead to a decrease in gas fees and speed up transactions. So, Shibarium is a solution that will keep Ethereum secure, eliminate its shortcomings for this project, and get additional advantages over other projects.
Other features of the Shibarium network can undoubtedly include an advanced mechanism for "burning" Shiba Inu coins. The constant decrease in the supply of tokens not only solves the problem of SHIB oversupply but also makes the coins more valuable. Among other things, Shibarium also focuses on NFTs and blockchain games, such as Shiba Eternity, released last year.
Shibarium Launch Date
Initially, the Shiba Inu development team planned to release Shibarium back in 2021, but for various reasons, this did not happen. Further, in January 2023, it was announced on the ShibaSwap team blog that “the launch of Shibarium Beta is imminent”. It was then that they announced that the long-awaited Layer 2 solution would be launched very soon.
On March 8, 2023, the official Twitter account of the Shiba Inu team announced a new Shibarium release date and clarified that “Shibarium Public Beta will be launching next week” and urged users to follow their social networks to get data on how to access the beta web site.
Finally, on March 11, 2023, the entire crypto world following Shibarium news saw the announcement that the Shibarium early beta test called PUPPYNET was finally released. The team also tweeted: “Today, more than ever, we see the need for a truly decentralized L2 network that powers the projects of a large, global, decentralized community.” You can read more about this on the official ShibaSwap blog.
On March 24, Shiba Inu social media also announced that “Shibarium’s Testnet is running again”, and now users can study the attached document and understand how Shibarium works.
What Does Shibarium Offer?
Many people around the world have been waiting for the release of the beta version of Shibarium, however, what does it give us? Firstly, it is public, which allows any user to create dApps. In addition, people can integrate into IRL businesses and implement projects with its help. The beta version can be accessed from the official Shiba Inu website. “Kusama also mentioned that SHIB burns would primarily depend on the transactions in the network and urged users to DYOR, and warned that all tokens on PUPPYNET are not real.” - Cryptology.st.
Shiba Inu Coin Status After Shibarium Launch
As you already know, the launch of the Shiba Inu coin L2 blockchain was quite an expected event in the crypto world. And, after its release in March of this year, the value of the Shiba Inu coin unexpectedly increased by as much as 10%, which led to the greater popularity of Shibarium. "However, a Shiba Inu Discord community member noticed the test chain used the same ID code as an existing blockchain.” - ShibariumNews.
Due to the current situation, the community supporting Shibarium was immediately seized with doubt and fear about the future of the project. Thus, in just a few hours, the price of Shibarium Coin dropped significantly and became approximately the same as it was before the launch of the beta version. After this event, the developers of Shiba Inu allayed the fears of the community and explained that the current situation would not have a negative impact on the fate of the project. “One of the devs, known as kaaldhairya on Twitter, said the situation was a simple mistake.” - ShibariumNews.
Now, on April 18, 2023, the value of the Shiba Inu coin is $0.00001158. During the past month, the price of the coin has hit several times, but in the long term, the Shibarium coin continues to grow.
Compared to the already existing Shiba Inu, Shibarium has a very different look and several digital tokens. The remarkable fact is that each of them is named according to the dog theme. So, let's look at the coins that exist in Shibarium:
- SHIB. Shiba Inu is a well-known ERC-20 token that has been on the crypto market since August 2020. This meme coin quickly gained value and gained support from people like Elon Musk and Vitalik Buterin. It is SHIB powers Shiba Inu who seeks “to be the Ethereum-based counterpart to Dogecoin’s Scrypt-based mining algorithm.” - CoinMarketCap.
- BONE. Bone ShibaSwap is a ShibaSwap ecosystem governance token that will allow users to vote on upcoming proposals. Accordingly, the more BONE the user holds, the weightier his vote. It is important to note that the supply of the token is limited, and BONE only has 250 million coins and is now also operational in Shibarium.
- LEASH. Another popular token in the Shiba Inu ecosystem is the Doge Killer. The number of LEASH tokens is also limited and is 107,646. It is the limited supply that makes this token exceptional among other dog coins and explains its high price. “LEASH is staked by holders to earn rewards. Rewards include xLEASH tokens that users can mint after unstaking.” - CoinTelegraph
- TREAT. $TREAT is a charity-driven token on Dogechain and Ethereum, which is also limited to only 100,000,000 TREAT. It is relatively new and was only launched in the summer of 2022. TREAT not only rewards holders and validators but also has other features. “This token finds a place in the ShibaSwap DEX, in place of BONE, and will also have a role in the upcoming Shiba Metaverse and Shiba Inu’s blockchain-based game.'' - Phemex.com.
- SHI. Shiba Inu, also known as SHI, is a Shibarium ecosystem stablecoin (as well as a decentralized meme token on the Ethereum blockchain) that is part of Shiba Inu's plan to migrate to the utility ecosystem. The main purpose of this token is to balance payments and prevent market fluctuations.
The Benefits of Shibarium Blockchain
Shibarium blockchain differs from others due to its faster transaction speed and lower fees, making it a great option for businesses using blockchain technology. However, despite the upgrade to Proof-of-Stake (PoS), the Ethereum blockchain has still not managed to scale. Shibarium is also a PoS project and helps Shiba Inu scale while still being connected to the Ethereum blockchain. So, the advantages of Shibarium are:
- Transaction speed. As already mentioned, one of the main goals of Shibarium is to increase throughput for users of the ecosystem. With the help of Level 2 in Shiba Inu, Shibarium increases the throughput and greatly improves the speed of transactions.
- Low fees. Ethereum has high fees that can even exceed the transaction amount. Sometimes the commission exceeds the amount of the transaction. The introduction of Shibarium's Tier 2 solution has made gas charges much lower.
- Ecosystem. Shibarium is becoming a complex ecosystem that includes several projects, such as the SHIB metaverse, ShibaSwap DEX, and blockchain games.
- Token functions. Despite burning over 40% of tokens, SHIB's vast supply hinders its growth, which is why Shibarium introduced BONE as a native coin. Thus, validators on the network are paid in BONE for securing and validating transactions. Also, the new system will ensure that SHIB is consumed on each transaction to control the amount of SHIB.
- Development of decentralized applications. Shibarium intends to develop a robust ecosystem that includes a layer 2 solution in combination with Ethereum, which will help it participate in the development of dApps.
- Security and transparency. Among other things, the Shibarium blockchain is a platform protected from unauthorized access. It can be used to transfer and store sensitive data, as well as track all transactions and activities.
Shibarium is the first scaling network related to meme coins and will surely advance the Shiba Inu ecosystem in many ways through the introduction of new dApps and products built on top of the layer-2 solution. Lower transaction fees coupled with new innovative projects will continue to attract investors, and the Shibarium burn mechanism is likely to drive up the price of SHIB. However, Shiba Inu is far from being a newcomer to the market, which, compared to new unique designs, may hinder its growth. So, while Shibarium could well be the new era for Shiba Inu, other variables could complicate or slow down the project's intended success.
Disclaimer: Notum does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Cryptocurrency is subject to market risk. Please do your own research and trade with caution.