Shibarium Blockchain and Layer 2 Solution
The Shibarium blockchain, expected to launch in 2022, is a second-tier solution for the groundbreaking Shiba Inu (SHIB) meme coin. In partnership with the Unification Foundation, the Shibarium blockchain launch will introduce a new SHI stable coin protocol. In addition, Shibarium will add new utilities to the Shiba control token, BONE.
Shibarium’s second-level blockchain is an unfinished blockchain network developed by the Shiba Inu development team. Focusing on scaling the current Ethereum host network, Shibarium will become a Layer 2 protocol, with faster transactions at lower costs.
In addition, Shibarium will become a development platform for blockchain programmers, and the protocol itself will facilitate the gaming applications Shiba Inu NFT and Metaworld.
In this article, we will delve deeper into the Shiba Inu ecosystem and look at Shibarium’s second-layer blockchain solution. Even though the network has not launched yet, we will discuss some of the features and protocols that the team plans to introduce before the launch.
What is Shibarium’s second-tier blockchain solution?
After the successful launch of the Shiba Inu token, its founder Ryoshi is determined to expand the value of the token far beyond memcoin. Shiba Inu (SHIB) is the service token of ShibaSwap, a decentralized exchange (DEX) on Ethereum. In late 2021, Ryoshi announced its plans to develop a second-tier blockchain solution for Shibarium, and Shibarium, in turn, will include a new stable Shiba coin, SHI.
The name “Shibarium blockchain,” however, does not accurately describe the infrastructure itself. Working on top of Ethereum’s leading smart contract chain, Shibarium is a second-layer protocol that optimizes the operation of the main chain. But there is confusion here as to whether Shiabrium is a blockchain protocol or, after all, a Layer 2 protocol. But, since the line between a second-level solution and its blockchain is very thin, Shibarium intends to merge these aspects, as Polygon and Binance Smart Chain (BSC) have done.
Accordingly, the transaction process takes place “between the first-level chain and the second-level protocol. As a result, Shibarium aims to dramatically reduce the cost of transactions and interactions on the Ethereum network. In addition, it will help reduce network congestion when transactions are performed by a large number of users at the same time.
The value proposition of the Shiba Inu token (SHIB) will theoretically increase with the emergence and adoption of the new protocol. In addition, with ultra-fast and low-cost transactions, the Shibarium second-tier blockchain solution is ideal for games and Meta-Universe use cases. SHIB is currently running on Ethereum as an ERC-20 token, but the tokens will migrate to Shibarium once the protocol is launched.
What is Shiba Inu?
Shiba Inu is an Ethereum-based thematic cryptocurrency that has set an annual growth record of almost 54,000,000%. Thus, Shiba Inu (SHIB) is more than just a memcoin with zero utility. So, investors who invested $2 to buy SHIB at the beginning of the year will become millionaires after the blockchain launches.
Founded by a developer under the pseudonym Ryoshi, the project aims for full decentralization. The founder himself makes this clear in his blog post: “…I’m nobody. I’m just some person banging on a keyboard who can be replaced. I’m just Ryoshi.”
According to Etherscan, a blockchain research and analytics platform, there are more than a million active wallets with SHIB tokens. Initially, the supply was one quadrillion SHIB tokens, 50% of which were stored in Uniswap.
The remaining half was sent to the wallet address of Ethereum co-founder Vitalik Buterin, who, during the pandemic, donated more to charity than his SHIB holding. He then burned the remaining 40%.
The Shiba Inu ecosystem includes a decentralized exchange (DEX), a non-interchangeable token game platform (NFT) and a Metaworld app.
In addition, in partnership with Unification Foundation, which offers blockchain solutions for enterprises, Shibarium’s second-tier blockchain solution will accelerate the awareness, adoption and therefore the value of Shiba Inu’s crypto-assets.
An overview of blockchain technology and second-tier solutions
We will now briefly discuss the underlying technology of Shiba Inu, as well as what makes Shibarium a very welcome addition to the industry.
Blockchain technology is a form of distributed ledger technology (DLT). Simply put, it means that there is a global community of computers (nodes) working together to verify and validate transactions in a peer-to-peer network.
Thus, there is no need for any third-party intermediaries. As a decentralized network, it must receive a majority vote for any adjustment or update of the protocol. Blockchain thus provides new opportunities for cryptographically preventing censorship in transactions.
All transactions are immutable, meaning that they cannot be adjusted or deleted. As a result, blockchain technology offers its valuable uses in a multitude of industries through security, transparency and optimization of its accounting.
The first blockchain to launch in 2009 was Bitcoin. The network is purely a peer-to-peer payment channel, sending funds from wallet A to wallet B. However, the launch of the Ethereum network in 2015, completely changed the blockchain landscape.
Ethereum introduced smart contracts and a decentralized playground for developers to create, test, deploy and manage multiple applications (dapps). However, Ethereum, like most other blockchains, faces a common so-called “blockchain trilemma.
In other words, this means that blockchains are difficult to scale without compromising their decentralization or security.
As a result, many solutions have emerged to scale Ethereum. Along with Ethereum 2.0 infrastructure upgrades to dramatically increase throughput, other scaling solutions include sidechains and layer 2 networks.
Shibarium blockchain utility and Layer 2 solutions
While the excitement around the launch of Shibarium has been going on since the summer of 2021, there is still very little accurate information about the infrastructure, specific technologies and launch date. Nevertheless, we do know that a Layer 2 solution will help scale the Ethereum network compatible with smart contracts.
Ryoshi, the founder of the network, said in his blog that he plans to introduce “minimal or even zero” transaction fees on the network. In addition, Shytoshi Kusama, head of the Shibarium project, stated that “Shibarium will offer low fees for every service, game or anything else that is based on the network itself.
Two main tokens will help Shibarium achieve its goals: BONE and SHI.
In addition to being a token for managing the Shiba ecosystem, BONE will have new utilities with the launch of Shibarium’s second-tier solution. Shibarium will use BONE as its own token to focus on decentralization, and create a new playing field.
According to CoinGecko, the maximum number of BONE tokens is 250,000,000 and the total number of tokens in circulation is 62,343,179. The token design for BONE should have an average Shiba ecosystem stock with three tokens (SHIB, LEASH and BONE).
Once Shibarium launches, all SHIB token holders will have access to exclusive BONE token issuance opportunities. The remaining SHIB and LEASH tokens will continue to perform their core functions on the ShibaSwap platform. Thus, all liquidity on Shibarium will use BONE as the base token.
SHI is a future Stablecoin that will run on both Ethereum and Shibarium. SHI aims to become a global means of saving, a unit of account and a means of exchange.
Most Stablecoins are pegged to $1. To ensure that SHI is accessible to anyone anywhere in the world, its price is pegged to $0.01. In this way, a stable coin will be able to facilitate payments in many different countries.
In the Shiabarium blog, Ryoshi states that they hope that SHI “will become a worldwide stable currency that ordinary people in all countries can use as a means of savings and a form of payment.”
The Future of Shibarium
Shibarium leader Shytoshi Kusama believes that the project will be up and running within a year. A priority milestone for the Shiba Inu development team is the launch of the Oshiverse game platform. Available for iOS and Android, it will encourage the use of Shibarium tokens and attract the attention of the community.
Oshiverse is set up to run on the Shibarium blockchain Layer 2 protocol. Consequently, Shibarium should be launched before the hype around Oshiverse becomes an overwhelming solution to scale Ethereum. In addition, there are rumors that some in-game tokenomics include SHIB token burning, reducing supply and consequently increasing value.
Another potential PR booster for the Shibarium scaling solution, could be the listing of Shiba Inu on Robinhood Markets (NASDAQ: HOOD), a leading trading platform for retail investors. The SHIBArmy community has gathered over 500,000 petitions on Change.org for Robinhood to put SHIB up for sale. This will introduce the Shiba ecosystem and therefore Shibarium to a new audience interested in investing.
The Shiba Inu project popularized a small Japanese dog breed and also became one of the most popular cryptocurrencies in the world. Thanks to the recognition of entrepreneur and tech innovator Ilon Musk, Shiba Inu (SHIB) has achieved record success through price growth.
Moreover, Shiba Inu’s anonymous creator, Ryoshi, is introducing a number of new protocols and applications, adding utility to his SHIB asset. Shibarium’s second-tier blockchain solution is the next important step in the development of the Shiba ecosystem.
Shibarium will use Shiba’s management token, BONE, as its underlying liquidity asset, and once the second-tier solution is launched, Ryoshi will issue a SHI steblecoin. Unlike any other stablecoin, SHI will have a stable peg of $0.01. This is so that it can be used as a form of digital payment with microtransactions.
In addition, SHIB tokens are now an acceptable form of payment at Newegg Commerce’s online store and AMC Entertainment’s giant movie theater. To further popularize the token, SHIBArmy is leading an active and strong community for the Robinhood trading platform. As a result, Shiba is gaining popularity, making Shibarium in high demand, with millions of crypto investors already waiting for its launch!