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 the Shibarium’s release date or 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.
What Is Shibarium?
Shibarium is an L2 blockchain scaling solution provided by the Shiba Inu creator, Ryoshi, to decrease Shiba Inu’s dependence on its host chain, Ethereum. Also, Shubarium is intended to improve scalability and increase transaction speed.
Upon Shibarium’s launch, SHIB will migrate to layer 2, which may help SHIB’s price to hit new highs. This is why knowing the Shibarium release date is essential to numerous crypto enthusiasts.
Shibarium Technical Aspects and Architecture
Shibarium is a layer-2 solution built on the Ethereum blockchain that aims to address the scalability challenges faced by the Ethereum network.
By offloading a great deal of transactions to Shibarium, the Ethereum blockchain is able to handle a higher volume of transactions without compromising security. Let’s take a closer look at the technical and architectural aspects of Shibarium.
Main Technical Features
- Proof-of-Stake (PoS) Consensus Mechanism: Similar to Ethereum’s transition, Shibarium adopts a PoS consensus mechanism so as to improve security and enable efficient validation of transactions.
- Token Burning: A great portion of transaction fees are burned which reduces 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 and thus leads 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 mainnet. As a result, it is more accessible to a wider range of users.
Architecture
Shibarium’s architecture is based on the following components:
- Sidechain: The main component of Shibarium is a sidechain that operates parallel to the Ethereum mainnet. This allows for independent processing of transactions and lowers the load on the mainnet.
- 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. These validators stake SHIB tokens to participate in the network.
When Did Shibarium Launch?
Shibarium 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, managing to attract a large number of users and boost the value of its associated token, BONE.
In the following weeks, Shibarium’s popularity continued to grow, with its user base and transaction volume reaching new milestones. To handle the increasing demand as well as to provide a more stable user experience, the network’s infrastructure was considerably scaled up.
What Is 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. Why do 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. The purpose of Shibarium is 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, i.e., the Layer-1 chain (Ethereum) and the Layer-2 protocol (Shibarium).
You may think two systems in action will result in low transaction speed, but Shibarium is efficient at handling a large volume of 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 Shibarium 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 the fact 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 is particularly beneficial for 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 important benefit of Shibarium is its ability to address the high gas fees that were hindering Shiba Inu’s growth. By having 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 overall performance of the network.
This enhanced scalability ensures that the Shiba Inu ecosystem can support a growing number of users and applications without experiencing the bottlenecks and high fees that have plagued Ethereum.
Higher Throughput
The introduction of Shibarium to the Shiba Inu ecosystem results in delivering a significant boost in throughput. This improvement is a stark contrast to the scalability limitations faced by Ethereum.
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). The lower fees and faster transactions make it an attractive option for developers looking to deploy DApps in areas like DeFi, gaming, and NFTs.
Security
One last benefit to mention is that Shibarium will use the same security system as Ethereum. The developers made sure that the security is very strong, so you can use Shibarium safely without worrying about their privacy or data.
Shibarium Utility Token: SHIB, LEASH, and BONE
Shibarium is a layer-2 solution for the Shiba Inu protocol, and it benefits all the three tokens the Shiba protocol provides, i.e., SHIB, LEASH, and BONE. Let’s get to know each one below.
SHIB
The SHIB token is Shiba Inu’s foundational currency, which 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 to be incentivised on ShibaSwap. Holders of the LEASH token will receive significant rewards for providing liquidity.
BONE
BONE was the third token to be released from the Shiba Inu platform to fill the void between the platform’s two other tokens in terms of supply. BONE is a governance token that lets the 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, i.e., its total supply is one quadrillion!
The thing is that 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. Simply put, the Shiba token burn will help increase the SHIB token price.
What Does Shibarium Mean for Shiba Inu?
Shibarium offers an important upgrade for the Shiba Inu ecosystem. Its proof-of-stake mechanism combined with its two-layered architecture makes Shiba Inu not only more scalable but also more 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 now support a wider range of 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, will 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
FAQ
Last but not least, let’s answer some of the most frequently asked questions regarding Shibarium.
Will Shibarium Burn Shiba?
Yes, Shibarium has a built-in mechanism to let the holders burn the tokens to take them off circulation to increase the SHIB’s price. According to recent updates, Shibarium may charge some fees and use them in burning the tokens.
Is Shibarium A Coin?
No, Shibarium is not a coin or token but a blockchain layer on the Ethereum blockchain aiming to be a Layer-2 solution.
What Is Shibarium Burn Mechanism?
Shibarium has a built-in mechanism for the SHIB token holders to enable them to burn the tokens. Burnt the SHIB tokens will no longer be in circulation, so they aid in surging the token’s price.
