The world of cryptocurrencies is constantly evolving, with innovations coming to market at an incredible rate. One of the newest and most promising projects in the Shiba Inu ecosystem is Shibarium. In this article, we take a look at what exactly Shibarium is and the potential benefits it could bring to the Shiba Inu community and the wider cryptocurrency industry.
Shiba Inu (SHIB) – what is it?
Before we move on to discuss the main topic of today’s article, we must first tell you what Shiba Inu is. Shiba Inu is the most well-known, meme cryptocurrency. It was launched in August 2020 during DeFi Summer. Its core values are: decentralisation and community engagement.
Shiba Inu is an ERC-20 token, built on the Ethereum blockchain. SHIB has the highest total supply among other altcoins – 1 quadrillion SHIB.
Although Shiba Inu is classified as memecoin, it has a very significant ecosystem that even includes a DeFi protocol called ShibaSwap. The project plans to venture into the abyss of NFT and Metaverse.
What is the Shibarium?
Shibarium is a project that aims to create a proprietary blockchain platform for Shiba Inu (SHIB), a cryptocurrency that has gained immense popularity due to its playful beginning and engaged community. It is a response to the growing demand for more advanced tools and features in the Shiba Inuecosystem.
More specifically, Shibarium is the Layer 2 Ethereum network, backed by Shib tokens. Shibarium is not a blockchain per se, but a blockchain layer that runs on Ethereum. The idea behind it is to take over a sizable transaction SHIB so as not to rely solely on the Ethereum ecosystem. The project is also intended to improve scalability, while also leveraging the Ethereum security layer.
This is very important because the main criticism faced by Shiba Inu, built on Ethereum, was its low capacity and high gas tariffs. This, in turn, was a huge impediment to the development of the entire Shiba Inu ecosystem. Even an upgrade to proof-of-stake did not change this.
The long-awaited Shibarium Bridge has been fully functional since 28 August 2028.
Interesting fact: Bridge, or in fact ‘bridging’, is a term that refers to the transfer of resources from Layer 1 to Layer 2. In the case of Shibarium, Layer 1 is Ethereum, while the Layer 2 protocol built on top of it is Shibarium.
Interesting fact 2: Following the introduction of the update, in just two days the number of daily transactions on Shibarium doubled and the number of addresses increased to over 330,000!
Features and key functions of the Shibarium
- Shibarium is a separate blockchain for Shiba Inu. This means that SHIB is no longer dependent on Ethereum. This brings greater independence and control over its own ecosystem.
- Smart contracts, which are one of the most important features of Shibarium. They allow the creation of advanced applications and services based on SHIB.
- Shibarium is a huge potential for the creation of decentralised financial services (DeFi). For users of the ecosystem, this is a huge plus! This allows them to use a variety of financial products, such as loans, staking or yeld farming.
- Scalability.This is one of the problems that Shibarium precisely can solve. As we mentioned in the paragraph above, the Ethereum on which Shiba Inu originally operated has limited capacity. This has resulted in high gas charges, among other things. Shibarium offers faster and cheaper transactions.
- Interestingly, Shibarium provides the opportunity to create and trade NFTs that are based on SHIB. This is another opportunity for creative applications of this ecosystem.
Coins that accompany the Shiba Inu
In the Shiba Inu ecosystem, there are a number of tokens you need to know before you are interested in Shibarium functionality. Here they are:
- Shiba Inu (SHIB). This is the original coin of the SHIB. There are currently approximately 550 trillion SHIB in circulation.
- BONE. A token of governance and usability in the Shiba Inu ecosystem. This is the coin that allows its holders to vote on the development of the project. It will also be Shibarium’s utility token. The supply of BONE is limited to 230,000 coins.
- LEASH.The most expensive coin is Shiba Inu, also in limited supply (approximately 100,000 units). Holders of these tokens can pledge them in liquidity pools, for which they receive rewards.
- TREAT. The latest token from the Shiba Inu collection. Launched in the summer of 2022. Its purpose is to reward its holders. The token will also feature in ShibaSwap DEX, instead of BONE. It will also play a key role in the upcoming Shiba Metaverse and the Shiba Inu game.
- Stablecoin SHI. There is not much information about this stablecoin at the moment. According to information, it will have some connection to the TREAT token.
Shibarium benefits
There are many benefits to implementing this solution. Here are the most important ones:
- First and foremost – more capacity. This is the main objective of Shibarium.
- Lower fees. There are really high expectations for the Shibarium. One of them is that it will make gas charges really small, or maybe even eliminate them completely.
- Shibarium will increase the utility of the Shiba Inu token. This solution is also expected to offer a SHIB burning mechanism. You will not be surprised to learn that the huge supply of SHIB token is an obstacle to turning it into a usable token.
- Development of dApps. This we also owe to Shibarium. Shiba Inu wants to become a major solution in this sector.
- Development of the Metaverse. The project plans to develop Shiba Inu in the Metaverse space. Shibarium is to play a key role in this endeavour here.
The future of the Shibarium
Without doubt, this is a huge step for the memecoin Shiba Inu (SHIB) ecosystem. It is another boost to global adoption of SHIB. What is eye-catching is that as part of Shiba Inu’s tokenomics, the project wants to use ShibaSwap’s BONE token as a gas fee token in Shibarium.
Moreover, in Shibarium TREAT will be an addition to SHIB and BONE. It will also be a new financial incentive tool. The token is in the development phase, but it will definitely bring a lot to the whole ecosystem.
Equally importantly, the creators of Shibarium emphasise that all the materials required for the beta testing of Shibarium will be completely free, and any offer to purchase tokens, is a scam.
Summary
Shibarium is an exciting project that could change the future of Shiba Inu. Bringing independence, scalability and advanced features, Shibarium is creating a new era in the SHIB ecosystem. Although the project is still in development, its potential and impact on the Shiba Inu community and the cryptocurrency market as a whole is undeniable. The progress of Shibarium is worth following, as it could become one of the most important steps in the history of Shiba Inu.