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The launch of Shibarium is a step to elevate Shiba Inu from its meme coin roots. SHIB, which was released in 2020, became popular in the memecoin space of cryptocurrencies along with Dogecoin (DOGE).
The Shibarium initiative is aimed to give a new identity to protocol by moving its status to more than just a memecoin. Along with providing users with significant transactions, membership features, and ownership, it also works as a Layer 2 solution that powers governance and the Shiba State framework. The network works on Proof-of-Stake consensus mechanisms.
The Details of Shibarium and its Ecosystem
Market capitalization makes Shiba Inu the second most significant meme cryptocurrency in the market. Participation within the Shiba Inu ecosystem who contribute liquidity has the opportunity to receive rewards through staking the project’s trio of native coins SHIB, BONE, and LEASH.
The ecosystem of Shiba Inu has many elements such as tokens like SHIB, LEASH, and SHIBOSHI NFTs. During the Blockchain Futurist Conference in Toronto, Shytoshi Kusama, the lead developer of Shiba Inu tweeted the launch date for Shibarium.
He announced that the Shibarium is almost complete. This news is received with so much excitement because it will lead to a translation for SHIB. It is a Layer 2 mainnet network of Shiba Inu which will reduce the costs and make transactions faster.
Although it is seen that the Shiba Inu price is dropping by 3.68% over the last 24 hours. However, it is anticipated that the upcoming eagerness of Shibarium will increase its price.
Proof-of-Participation (PoP) is the new consensus mechanism on which Shibarium is built. It works by selecting validators in proportion to their quantity of holdings. This is done to abstain from the computational cost of Proof-of-Work schemes. This blockchain solution is crafted above Layer 1, thus, enhancing scalability and cost efficiency.
In this Shibarium design, validators take charge of running nodes, facilitating translation processing, and generating new blocks. This also safeguards the security of the ecosystem. Delegators are backing the validators by staking support tokens.
Developers say that Shibarium plays a prime role in supporting other items of the Shiba Inu ecosystem. It has been catching users’ interest for months before its launch. After months of testing, it was finally launched on August 16, and 21 Million wallets were created.
Shytoshi Kusama, the lead developer shared the screenshot of companies on X that are presently developing on Shibarium. He suggested that over 100 companies are already using it. He added that it incorporates decentralization, interoperability, and user-centric design for both the blockchain and technology sectors.
Like Polygon, Shibarium will make use of the Heimdall validator and Bor block production nodes. Heimdall will be based on the Tendermint consensus engine while Bor will be completely interoperable with the Ethereum blockchain.
Precisely, it is said that Shibarium is a project designed by Shiba Inu which is a Layer 2 blockchain. As it is a Layer 2 solution, it is designed to interact seamlessly with the primary Ethereum blockchain providing a more scalable and cost-effective transaction platform.
Shibarium Escalates the utility of Shiba Inu Token
Shibarium has increased the usability of the Shiba Inu Token by increasing faster and cheaper transactions. This reveals the potential of Shibarium to play a significant role in the extensive adoption of blockchain technology.
It is built on top of Layer 1 which is the base layer. It will handle the transactions of the main Ethereum chain, hence, it will lessen the burden on the network which results in faster transactions.
It was launched with the aim to replace the higher gas price and slow transactions on the Ethereum network. The assigned gas fees in this blockchain will be paid in BONE and 20 Million BONE tokens will be set aside as an incentive for validators and delegators in the Shibarium ecosystem.
It is necessary to lock 10,000 BONE tokens to qualify as a validator. There is an option of giving the tokens to those who are interested in node operations without engaging. Shytoshi Kusama, the developer of Shibarium, has indicated the merging of Shibarium into Shiba Inu (SHIB) metaverse initiatives and the Shiba Eternity game.
The Shiba Inu ecosystem extends its support to new projects through launchpads. It will help the projects to gain traction and visibility. A wide range of decentralized applications also fills the Shibarium ecosystem. Shib Chomp, which is regulated by the $CHOMP token, offers secure storage solutions. $TREAT which governs the Treat increases the stability and governance. The $PRO token efficient trading can be done which is a sniper bot.
NFTs and memcoins are also important parts of the Shibarium ecosystem. Shiboshis is the NFT project while memecoins like $KOYO, $HEEL, $BAD, and $PYRITE contribute to the ecosystem’s varied range.
Summary
The importance of Shibarium for Shiba Inu is varied. It has increased the project’s ability and long-term possibility. It will lead to substantial growth by enhancing the transaction speed which increases its efficiency.
The Layer 2 solution will lower the gas fees which will result in reducing the high transaction costs. The token utility will be enhanced by making BONE the native currency. The validators in the network will receive compensation in BONE for securing and validating transactions.
Hence, the ultimate goal is to become a global cryptocurrency besides being known as memecoin and to enhance the users’ experience within the Shiba Inu ecosystem. It will serve as a platform for building decentralized applications (dApps) and combining them with real-world business.
Source: https://www.thecoinrepublic.com/2023/08/30/know-the-functionality-and-mechanism-of-layer-2-network-shibarium/