If you know anything about meme tokens, you should know about Shiba Inu, and if you know Shiba Inu, you must have heard of Shibarium. Many people do, but most do not know what it is. For starters, it is a layer two blockchain network built on the Ethereum network.
Shiba Inu was created as a meme token, similar to Dogecoin. However, the team behind it became more ambitious and wishes to turn Shiba Inu into a full blockchain ecosystem right on Ethereum. This is to be achieved through Shibarium.
Proposed by Ryoshi the anonymous creator of Shiba Inu in 2021, the network will add several capabilities to Shiba Inu as you’ll see shortly. In this guide, we discuss what Shibarium is, and the details of its impact on Shiba Inu.
Why Shibarium is important
Shiba Inu to this point is just a meme coin project like any other meme token with no real use case. Ryoshi however proposed Shibarium as a solution to bring functionalities to the network and increase its use cases.
The idea is to transform Shiba Inu into a comprehensive ecosystem that includes a decentralized exchange (DEX), a metaverse and blockchain games, such as Shiba Eternity. These are essential aspects of blockchain and crypto technology now, and will make Shiba Inu an in-demand project.
What are the advantages of Shibarium?
Since Shibarium is a proof-of-stake project, it is likely to bring some positive features to Shiba Inu, including the following:
Faster transactions
The project is supposed to increase the transaction throughput for Shiba Inu. This is the number of transactions the network can process per second. A higher throughput will enable the network to handle more transactions. This will in turn boost transaction speed considerably.
Lower transaction fees
High transaction fees is one of the major problems for Ethereum network users. With instances where transaction fees are higher than the transaction amount, this has been a nightmare. However with the introduction of Shibarium, Shiba Inu will be exempted from the fee issue as the fees will be significantly reduced.
Becoming an ecosystem
Shiba Inu is a meme token with no real world use cases. However with Shibarium, it is to be transformed into a complete blockchain ecosystem comprising several components, including SHIB metaverse, ShibaSwap DEX and blockchain games. while the metaverse and games are expected to pull in users, the DEX will provide better liquidity.
A new token
Shibarium will introduce a new token, BONE, to the Shiba Inu network. The token will be used as the native token to reward validators. BONE became necessary because SHIB, the original token for Shiba Inu, is highly inflated which has hindered its growth. The use of BONE on the network will also lead to more burning of SHIB, leading to increased value.
Support for decentralized applications
When Shibarium goes live, developers will be able to use it for developing decentralized applications (Dapps). These are decentralized applications with backend code executing on a decentralized peer-to-peer (P2P) network. Shiba Inu alone could not support dapps development but with Shibarium, this has become a possibility.
How Shibarium will work
As stated earlier, Shibarium is a layer two network on Ethereum. This means it isn’t coming to replace Ethereum but to build on it. It will therefore harness Ethereum’s strengths and add more to it.
It will therefore handle Shiba Inu transactions and relieve Ethereum of the extra transaction load. Considering that Shibarium will still retain Ethereum’s security, it is a perfect plan to make transactions faster while retaining security.
Shibarium will also have a mechanism for burning SHIB tokens used to pay for transaction fees, and increasing its value over time. This will set SHIB on the path to increase in price towards the $1 value that the SHIB Army has always longed for. Shibarium therefore is a complete upgrade for Shiba Inu that everybody looks forward to.
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