Shiba Inu, one of the biggest alternative coin projects in the cryptocurrency market, has been releasing new features ever since it was first introduced. From non-fungible token (NFT) collections to decentralized exchanges like ShibaSwap, the SHIB army has been impatiently awaiting the launch of Shibarium.
Shibarium is a forthcoming layer-2 solution that aims to enhance the Shiba Inu ecosystem by delivering quicker transactions at a lower cost, among other significant improvements. The release and use of Shibarium, however, are still very much in the dark.
Will the price of the token rise after the launch of the Shibarium blockchain? What advantages does shibarium offer? These and other issues will be discussed in this article. Keep reading!
Why Shibarium?
Despite being a very secure and decentralized blockchain, the Ethereum network, which the current Shiba Inu token is running on, has scalability issues and low throughput as its main drawbacks.
The main goal of the transition was to introduce new token issuance mechanisms, a better data processing system, and new tokenomics that will benefit the chain in the long run. While Ethereum has switched from Proof-of-Work (PoW) to Proof-of-Stake (PoS) via the Merge, this does not mean that scalability and low throughput issues are resolved. Consequently, layer-2s and sidechains continue to be crucial components of the Ethereum ecosystem.
Before we get started, let’s quickly review layer-2s and scaling solutions because they are important to understanding why the Shiba community is building Shibarium.
Shibarium Release Date
The Shibarium release date has been a subject of discussion recently, as it was due As you are aware by now (!), it didn’t happen on time as Shiba programmers failed to finish it.
An important fact was revealed by the crypto influencer: the launch of Shibarium is imminent. The Between January and February of 2023, Shibarium might go live. Shibarium is, in fact, the final component required to turn the two-year-old meme coin into a self-sufficient ecosystem.
Shiba Inu’s Bone ShibaSwap (BONE) will be used for gas costs when Shibarium launches. The team would also be able to introduce SHIB: The Metaverse and the $SHI stablecoin following the launch of Shibarium.
The launch of Shibarium is an exciting development for the Shiba Inu community because it gives the coin new opportunities. We are eager to see what the team has in store for us next.
What is Shibarium Blockchain?
Shibarium Blockchain is an By using Ryoshi’s L2 blockchain scaling solution, Shiba Inu can become less reliant on Ethereum, its host chain. Shubarium is designed to increase transaction speed and scaleability as well.
When Shibarium launches, SHIB will move to layer 2, which could help the price of SHIB reach new highs. For many cryptocurrency enthusiasts, knowing the release date of Shibarium is crucial.
What is a Layer-2?
A secondary chain that is layered over a main chain is referred to as layer 2. When we refer to a blockchain as a whole, we are actually talking about a layer-1, also known as the main chain, base layer, layer-1, and so forth. Therefore, a layer-2 chain is a chain that functions in tandem with the primary chain.
Scaling solutions, also known as layer-2s, are a technology that can improve a blockchain in a variety of ways but whose main objective is to relieve network congestion on the main layer. There are different types of scaling solutions, mainly:
- The term “sidechains” refers to separate blockchains that can coexist with a main blockchain. Polygon, an Ethereum Virtual Machine (EVM)-compatible sidechain, is a well-known illustration. Although it is autonomous, it enables users and developers to move their projects from Ethereum to Polygon and vice versa.
- State channels are peer-to-peer protocols that let two parties conduct business outside of the Ethereum network and publish the results to the blockchain.
- Layer 2: A scaling method that executes transactions in a layer-2s chain off the network before sending the transaction data back to the primary blockchain in batches. Optimistic and Zero-Knowledge rollups are two common examples of layer-2s.
Shibarium will be a layer-2 chain that applies the Proof-of-Stake consensus algorithm in this scenario. This indicates that in order to become a validator, users will have to stake some of their tokens.
Instead of miners using hardware that uses a lot of electricity, a validator will check the blockchain’s state to process transactions. Decentralization of the blockchain will be guaranteed by the vast computer network acting as validators.
How Will Shibarium Work?
For the purpose of processing transactions on the Shibarium ecosystem, Ethereum will collaborate with Shibarium. To process the Shiba Inu ecosystem’s current transaction load on Ethereum on the Shibarium chain, a sizable portion of it must be taken.
In order to decrease the supply and help drive up the price, layer-2 will also remove tokens from circulation. Sending tokens to wallets that can only receive tokens but not send them, also referred to as Dead Wallets, is known as a token burning mechanism.
The SHIBArmy has long supported token burns as a way to lower the circulating supply of the meme-inspired cryptocurrency and increase the value of circulating tokens if demand is maintained or increases. The Shiba Inu neighborhood burned 410 trillion tokens as of the end of 2021.
To date, it is unknown whether optimistic rollups or ZK rollups will serve as the foundation for Shibarium’s layer-2 technology.
How is Shibarium Blockchain Different from Other Blockchains?
The primary distinction is the fact that Shibarium Blockchain isn’t even a blockchain! Despite what everyone claims, it is not what they claim! It is merely an Ethereum blockchain layer, as was already mentioned.
We cannot compare them with just a layer of blockchain because other blockchains are blockchains in and of themselves. Shibarium is not a standalone blockchain like the Ethereum blockchain, so that claim is incorrect technically.
When Will Shibarium Launch?
As of this writing, Shibarium’s official release date has not been announced. According to the project’s official blog post, developers have been working on it since April 2022, but there have been no updates regarding its progress. According to reports, the project will launch a public beta shortly after its release and then transition into the Testnet phase.
In other words, a lot of work is being done behind the scenes, but nothing is official as of yet. Developers will be able to create and test the end-user interaction tools, including wallets, block explorers, and token transfer bridges, on the Testnet.
History of Shibarium
The Shiba Inu creator, an unnamed developer named Ryoshi, first suggested the creation of Shibarium. However, on the now-deleted blog post, Ryoshi wasn’t sure about whether it was its own blockchain or an L2 —but the line that separates the two is rather thin: “The line between an L2 and own blockchain is thin, I mean what is the difference really between Matic L2 [Polygon] and BSC [BSC has since rebranded to BNB Chain]”
According to a blog post from the developers, Shibarium appears to remain its own layer-2. Because it will continue to be linked to Ethereum, SHIB 2.0 won’t exist. Users must use $BONE to transact on layer-2, according to the policy. The demand for BONE, the governance token of the decentralized exchange ShibaSwap, should increase as a result, in theory.
The idea of shibarium has been around since the beginning of 2021. Twitter is where we can find the Shiba community discussing how close Shibarium is to being finished. However, the prolonged wait has unnerved BONE owners.
Currently, the Shiba Project Lead is Shytoshi Kusama. Kusama claims that everything building on Shibarium will benefit from its lightning-fast transaction throughput, low fees, and other features.
Benefits of Shibarium Blockchain
The Shibarium layer-2 solution aims to provide the following benefits:
- Improved Throughput
- Lower Gas Fees
- Increased Token Utility
- Transparency
- Security
- Streamlining Shiba Inu NFT Gaming
- Developing DApps
- Expanding Metaverse
How Will Shibarium Impact SHIB?
The development of the Shibarium blockchain aims to improve the price stability of SHIB and support price growth via a burn mechanism. Everyone in the crypto community wants a lower transaction fee, and projects that actually deliver it will see an increase in users, i.e., more transactions.
Shibarium Utility Token: SHIB, LEASH and BONE
Shibarium is a layer-2 solution for the Shiba Inu protocol that benefits all three of the tokens it offers, i.e., BONE, LEASH, and SHIB. Below, we’ll get to know each of them.
Shib
The SHIB token, the first token listed and offered as a reward on Shiba Inu’s DEX, ShibaSwap, is the base currency of the Shiba Inu ecosystem.
Leash
As the second token on ShibaSwap to receive incentives, LEASH was developed as a rebase token. In exchange for supplying liquidity, LEASH token owners will be rewarded significantly.
Bone
BONE was the third token to be released from the Shiba Inu platform to fill the gap in supply between the platform’s other two tokens. Its holders can vote on Doggy DAO proposals using the governance token BONE.
Shibarium and Shiba Token Burn
It’s important to mention the Shiba token burn now that we know everything there is to know about the Shibarium release date and its mechanics. You may be aware that there are excessive numbers of SHIB tokens available, i.e., its total supply is one quadrillion!
The problem is that demand and value of the token decrease as total coin supply increases! To deal with this minor issue, Shiba Inu started its burn mechanism. In other words, the price of the SHIB token will rise as a result of the Shiba token burn.
The Future of Shibarium
Shibarium will have a profound impact on the Shiba Inu ecosystem if it succeeds in achieving its objectives. In addition to faster and less expensive transactions, token values will stabilize and even increase. Additionally, it will develop a more decentralized exchange to offer more liquidity.
It’s impossible to predict exactly what will result from ecosystem-related apps and services that grow with Shibarium as their foundation. The technology behind the blockchain will be open to new applications by developers. The ecosystem will become more robust thanks to these apps, there’s no denying that.
One of the most intriguing uses for the scaling solution, one that could make Shibarium a force to be reckoned with, is to enable more efficiency for metaverse applications.
Closing Thoughts
Although Shiba Inu is often referred to as a meme coin, it has developed past that label. Currently, it has grown into a complete ecosystem, with tokens like LEASH and BONE serving functions that SHIB couldn’t have handled on its own.
Shibarium offers a chance to take advantage of and develop the ecosystem by providing quicker transactions, greater security, and more. To ensure that this eagerly anticipated blockchain solution gets off to a strong start, developers have given it their all.
FAQs
What’s the Purpose of Shibarium?
It not only increases transaction speed and scalability but also serves as the basis for new decentralized applications of every kind that are built on the new layer-2, such as DEXs, NFT marketplaces, and others.
When Will Shibarium Launch?
There is currently no set date. Investors are just as interested in hearing from the official developers as SHIB soldiers are.
What Tokens Will Shibarium Use?
An array of tokens, including $BONE and $LEASH, will be available in Shibarium. The first will function as the chain’s utility token, and the latter will serve as a liquidity token that users can stake in liquidity pools to receive rewards.
