Shibarium is Shiba Inu’s solution to the scalability problem in the Ethereum blockchain. Shibarium is a blockchain layer running on Ethereum, with its built-in burn mechanism to help raise the price of the SHIB token. If you want to know Shibarium’s release date, its technical aspects, or if you are interested in learning more about its benefits, stay put because we’ll cover all these questions and more in this blog post.
Table of Contents
What Is Shibarium?
Shibarium is an L2 blockchain scaling solution provided by Ryoshi, the creator of Shiba Inu. Its purpose is to decrease Shiba Inu’s dependence on its host chain, Ethereum, improve scalability, and increase transaction speed.
Upon Shibarium’s launch, SHIB will migrate to layer 2, which may help SHIB’s price hit new highs. Knowing the Shibarium release date is essential to numerous crypto enthusiasts.
Shibarium Technical Aspects and Architecture
This lockchain layer-2 solution built on the Ethereum blockchain aims to address the Ethereum network’s scalability challenges.
By offloading a large number of transactions to Shibarium, the Ethereum blockchain can handle a higher volume of transactions without compromising security. Let’s take a closer look at Shibarium’s technical and architectural aspects.
Main Technical Features
- Proof-of-Stake (PoS) Consensus Mechanism: Similar to Ethereum’s transition, Shibarium adopts a PoS consensus mechanism to improve security and enable efficient transaction validation.
- Token Burning: A significant portion of transaction fees is burned, reducing the circulating supply of SHIB tokens.
- Cross-Chain Compatibility: Shibarium is designed to be interoperable with the Ethereum mainnet. This technical aspect allows for a seamless transfer of assets and information between the two networks.
- Scalability: By handling a portion of Ethereum’s workload, Shibarium significantly increases the network’s capacity, leading to faster transaction times and reduced congestion.
- Low Transaction Fees: Shibarium’s layer-2 architecture allows for much lower transaction fees compared to the Ethereum main net, making it more accessible to a wider range of users.
Architecture
Shibarium’s architecture is based on the following components:
- Sidechain: The main element of Shibarium is a sidechain that operates parallel to the Ethereum mainnet. This allows for independent transaction processing and lowers the mainnet’s load.
- Bridge: A bridge connects Shibarium to the Ethereum mainnet to enable the transfer of assets and information between the two networks.
- Validators: A network of validators secures Shibarium and ensures the integrity of transactions. To participate in the network, these validators stake SHIB tokens.
When Did Shibarium Launch?
This blockchain had quite a bumpy start. Despite launching on August 16, 2023, it had to be temporarily shut down due to technical issues. After a brief hiatus, it was relaunched on August 25, 2023.
This relaunch was a success, attracting a large number of users and boosting the value of its associated token, BONE.
Shibarium’s popularity grew in the following weeks, with its user base and transaction volume reaching new milestones. To handle the increasing demand and provide a more stable user experience, the network’s infrastructure was considerably scaled up.
What Is a Blockchain Layer-2 Solution?
Layer-2 solutions refer to the technology a blockchain protocol uses to increase the efficiency and speed of its underlying blockchain. We need to increase efficiency and speed in blockchain because of the blockchain trilemma.
It’s essential to know what blockchain layers are and how the L2 solutions work.
What Is The Purpose of Shibarium Blockchain?
It’s called the Shibarium blockchain, but practically, it is not a blockchain but a blockchain layer on Ethereum. This aims to control and support a big part of the SHIB token transactions to decrease Shiba Inu’s dependency on Ethereum.
How Does Shibarium Work?
Thanks to Shibarium, the Shiba Inu transactions will be divided between two chains: the Layer-1 chain (Ethereum) and the Layer-2 protocol.
You may think that two systems will result in low transaction speed, but Shibarium efficiently handles many transactions. Ethereum transactions won’t cause delays, and the network won’t experience congestion.
Shibarium will also have a burn mechanism, which will constantly burn SHIB tokens to help increase the token price and receive a small fee to be used in the burn process. Those holders participating in the token burn will be rewarded with lower transaction fees.
How Is Shibarium Blockchain Different From Other Blockchains?
The first difference is that Shiba is not even a blockchain! Everybody says it is, but actually, it’s not! As mentioned above, it is only a blockchain layer on the Ethereum blockchain.
Considering that other blockchains are blockchains per se, we cannot compare them with only a layer of blockchain. So, technically, it’s not correct to call Shibarium a standalone blockchain like the Ethereum blockchain.
Benefits of Shibarium
The Shibarium layer-2 solution aims to provide the following benefits:
Lower Transaction Fees
One of the most immediate advantages is the reduction in transaction fees. This particularly benefits users conducting smaller transactions since it makes microtransactions more viable. By lowering costs, Shibarium encourages increased participation and engagement within the ecosystem.
Lower Gas Fees
Another essential benefit of this blockchain is its ability to address the high gas fees hindering Shiba Inu’s growth. With its own blockchain, Shiba Inu can now offer real utility for its tokens, going beyond its meme coin status. This shift is crucial for the ecosystem’s long-term sustainability and growth.
Better Efficiency and Scalability
The Shibarium’s ability to handle a higher volume of transactions with greater speed directly contributes to the network’s overall performance.
This enhanced scalability ensures that the Shiba Inu ecosystem can support growing users and applications without experiencing the bottlenecks and high fees plaguing Ethereum.
Higher Throughput
The introduction of Shibarium to the Shiba Inu ecosystem delivers a significant boost in throughput. This improvement is a stark contrast to Ethereum’s scalability limitations.
With faster transaction speeds, Shiba Inu is well-positioned to experience substantial growth, which makes it a more attractive platform for decentralized applications (dApps) in areas such as blockchain gaming and decentralized finance (DeFi).
Developing DApps
For developers, Shibarium offers a more efficient and cost-effective platform for building decentralized applications (DApps). Its lower fees and faster transactions make it an attractive option for deploying DApps in areas like DeFi, gaming, and NFTs.
Security
One last benefit is that Shibarium will use the same security system as Ethereum. The developers ensured the security is robust, so you can use Shibarium safely without worrying about your privacy or data.
Shibarium Utility Token: SHIB, LEASH, and BONE
Shibarium is a layer-2 solution for the Shiba Inu protocol. It benefits all three tokens the Shiba protocol provides: SHIB, LEASH, and BONE. Let’s get to know each one below.
SHIB
The SHIB token is Shiba Inu’s foundational currency. It is the first token listed and incentivized on Shiba Inu’s DEX, ShibaSwap.
LEASH
LEASH was created as a rebase token, and the second token was to be incentivized on ShibaSwap. Holders of the LEASH token will receive significant rewards for providing liquidity.
BONE
BONE was the third token released from the Shiba Inu platform to fill the supply gap between its two other tokens. It is a governance token that lets holders vote on Doggy DAO proposals.
Shibarium and Shiba Token Burn
Now that we have learned all about the Shibarium release date and the details of how it works, it’s good to mention the Shiba token burn. You may know that there are too many SHIB tokens out there—their total supply is one quadrillion!
The more coins in total supply, the less demand and value of the token! Shiba Inu started its burn mechanism to solve this problem of low value. The Shiba token burn will help increase the SHIB token price.
What Does Shibarium Mean for Shiba Inu?
Shibarium offers an essential upgrade for the Shiba Inu ecosystem. Its proof-of-stake mechanism combined with its two-layered architecture makes Shiba Inu more scalable and efficient.
This technological advancement is not only about speed and cost-effectiveness. It also opens up new possibilities for Shiba Inu. With Shibarium, the ecosystem can support various applications, including decentralized finance (DeFi), non-fungible tokens (NFTs), and gaming.
This expansion is expected to attract more developers and users and, as a result, contribute to the overall growth and sustainability of the Shiba Inu ecosystem.
Summary
Here we are, through with the essentials about Shiba Inu’s Layer-2 solution, Shibarium, and how it works.s
FAQ
Will Shibarium Burn Shiba?
Yes, Shibarium has a built-in mechanism that lets the holders burn the tokens to remove them from circulation and increase the price of SHIB. According to recent updates, Shibarium may charge some fees to burn the tokens.
Is Shibarium A Coin?
Shibarium is not a coin or token but a blockchain layer on the Ethereum blockchain, aiming to be a Layer-2 solution.
What Is this Burn Mechanism?
Shibarium has a built-in mechanism for SHIB token holders to burn their tokens. Burnt SHIB tokens will no longer be in circulation, which will help to surge the token’s price.
