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What Is Shibarium? All about Shiba Inu’s Layer-2 Solution

Joshua Morris -

Shiba Inu is a meme-coin that initially had little to no utility. It rose to prominence during the 2020/2021 rally following the success of Dogecoin. Since then, the Shiba Inu ecosystem has significantly expanded. It includes a proprietary decentralized exchange (DEX), ShibaSwap. The ecosystem’s primary token, SHIB, has increased adoption and is widely accepted as a form of payment at hundreds of locations. As part of this impressive development, Shiba Inu launched Shibarium, a layer-2 solution built on Ethereum. Please read on if you want to know more about this exciting development.

What Is Shibarium?

Shibarium is Shiba Inu’s Ethereum layer-2 blockchain, aimed to transform this popular meme coin into a complete ecosystem and provide a more efficient, scalable, and user-friendly blockchain experience. It was launched on the Shiba Inu mainnet on August 16, 2023. However, Shibarium had operational problems due to the high traffic it attracted and was shut down soon after its launch. It was successfully re-launched a few days later, on August 25. The platform recorded more than 420,000 transactions within 24 hours of re-launching. On August 28, Shibarium surpassed more than 100,000 wallets.

How Does Shibarium Work?

As a layer-2 solution, Shibarium takes away transactions off the Ethereum blockchain and handles them on its own blockchain. This way, Shibarium relieves Ethereum of the large volume of transactions that often cause delays and hinder Ethereum’s full potential. However, while handling most network activities, Shibarium retains Ethereum's security layer. As a result, users enjoy faster yet secure transactions with significantly lower fees.

To reduce SHIB’s inflation, Shibarium also incorporates a mechanism to burn SHIB tokens paid as fees for executing transactions. This way, the SHIB circulating supply will steadily reduce, leading to an upward motion of the token’s price. This mechanism will transform SHIB into a more utility-focused crypto asset instead of a simple high-supply meme coin.

Coins Associated with Shibarium

Shibarium will utilize several digital tokens, each performing different functions on this platform. These tokens are:

  • SHIB: The native token of the Shiba Inu ecosystem. This ERC-20 token is primarily used for payments. SHIB tokens are burned after Shibarium transactions.
  • BONE: This token is used for governance on ShibaSwap. It can also be used to pay gas (transaction) fees on Shibarium and rewards to validators.
  • TREAT: This token incentivizes liquidity pools on ShibaSwap. It can also be used to reward validators and developers along with BONE after reaching a certain threshold.
  • LEASH: This token allows holders to access extra benefits like staking to earn rewards.
  • SHI: A stablecoin to counter and balance payments while staving off market fluctuations.

You can purchase SHIB and BONE on LetsExchange.io at competitive rates without hassle.

Benefits of Shibarium for the Shiba Inu Ecosystem

Although the upgrade to a proof-of-stake (PoS) mechanism significantly improved transaction speeds and lowered gas fees for Ethereum, this blockchain still struggles with scalability despite its robust security layer. Shibarium fills the gap by enabling Shiba Inu to scale while remaining connected to the Ethereum blockchain. It will significantly contribute to stabilizing the SHIB price and transforming Shiba Inu into an established project with added value and long-term perspectives. Below, we list some crucial benefits Shibarium brings to the Shiba Inu ecosystem.

  • Better transaction speeds: A layer-2 solution increases throughput, enabling significant growth of the entire ecosystem.
  • Lower fees: One of the biggest disadvantages of the Ethereum blockchain is the high gas fees. Shibarium makes these fees negligible.
  • Token utility: Shibarium will help to control the hugely inflated supply of SHIB by burning the tokens used to pay for transactions.
  • DApp development: Shibarium provides the technical ability to create DApps within the Shiba Inu ecosystem.
  • Complete ecosystem: Shibarium has transformed Shiba Inu into a comprehensive ecosystem comprising several projects (SHIB metaverse, ShibaSwap, and blockchain games).

Conclusion

Shibarium is undoubtedly a critical turning point for the Shiba Inu ecosystem. This layer-2 solution will significantly contribute to the global adoption of the SHIB token. The use of BONE as a utility token on Shibarium is another important achievement. Shibarium is much more than just an extension of the Shiba Inu ecosystem. It is a transformative and evolving entity that adapts to the needs of its community. Shibarium will enhance user experience by providing higher transaction speed, significantly lower fees, and outstanding scalability.