What is Shibarium? Shiba Inu will release SHIB Layer 2 Solution: Release Date and Details
Shiba Inu Layer 2 Solution: The Shibarium, SHIB’s answer to their L2 Blockchain Scaling solution, will be released soon. Learn more about Shiba Inu L2 here.
In this series of BitKan Learn, we will learn a bit more about what is Shibarium, which is the Layer 2 scaling solution for the Shiba Inu coin. Shibarium embarks on becoming a powerful Layer 2 blockchain and a transitional evolution to the Shiba Ecosystem. Shibarium’s layer 2 is a collective blockchain that scales and invites solutions, innovation, and security to the Decentralized Finance Space with respect to Shiba Inu.
This blockchain (L2) runs on top of the Ethereum blockchain, which the SHIB ecosystem tokens (SHIB, LEASH & BONE) utilize. A Layer 2 blockchain provides the benefits of scalability, faster transaction times, lower fees, and an expanded development framework. Below is a more detailed explanation on this.
As Shytoshi Kusama puts it on Shibarium: The Invite,
Shibarium is not only the tool that empowers the ShibArmy to utilize digital assets in the form of tokens and NFTs or gain access to digital places like the Metaverse. Shibarium also encourages closed-community product loops; the ability to launch community-originated, Shiba-branded, physical products in real life with more utility than ever before; exercise product loyalty by choosing quality-equivalent Shiba-oriented goods; and of course, craft unique, community-powered platforms unaffiliated with the Shib Development Team.
How does Shibarium resolve issues in Ethereum: What is Layer-2 Solution?
Firstly, you have to understand Layer-1, Layer-1 Solutions, and Layer-2 Solutions.
- Layer 1 refers to a base network, such as Bitcoin, BNB Chain, or Ethereum, and its underlying infrastructure.
- Layer-1 solutions add utility to a native blockchain (i.e. Layer 1) to optimize its performance.
- Layer-2 solutions are third-party protocols that integrate with an underlying Layer-1 blockchain (i.e. Layer 1) to increase transactional throughput.
Why would you need to increase transaction throughput?
In times of bull markets, using the Ethereum network during peak times can be a chore as you have to understand that Ethereum transactions work based on how much gas fees you are willing to bid for the transaction to go through — the higher you bid the gas fees, the faster your transactions become a priority. This is because Ethereum can only handle about 15 transactions per second (tps) at peak load — so resources are limited and this mechanism of transaction prioritisation becomes sensible.
Hence, in the height of the bull market in April 2021, these fees ranged from an average of $9 to over $30 per transaction — and at times far exceeded these figures. Moreover, the cost of smart contract transactions has reached staggering heights, with the average Uniswap, Curve and Balancer transactions now coming in at well over $150 a pop. Simply put, to do anything with a high gas fee in Ethereum is something most people find undesirable, and this is how Shibarium can come into play.
Scaling solutions like Shibarium circumvent this problem by boosting the number of transactions that can fit into each block. This is done by handling some of the transaction logic off the Ethereum mainchain to reduce the size of each transaction, or by bundling a bunch of transfers into a single optimized transaction.
Hence, this layer aims, as a protocol, to work on top of existing blockchain networks, allowing for faster, cheaper, and more private transactions to be processed off-chain, while still relying on the security of the underlying blockchain.
How Shibarium will help Shiba Inu, $SHIB and $BONE
With this added boost in handling the number of transactions due to the introduction of Shibarium, there exist possibilities for Shiba Inu to expand and handle a wider audience. Tapping on to this benefit of reduced load on the blockchain network and improved user experience, Shiba Inu intends to serve different industry areas such as metaverse, web3 innovation, and gaming. The team is planning to do this using $SHIB and $BONE tokens.
Shibarium’s philosophy is BURN, PROTECT, HELP, GROW. Simplified, this means that:
- BURN: All projects on Shibarium have to BURN tokens
- PROTECT: Community supporters of Shibarium must provide feedback especially when there are scams in the ecosystem
- HELP: Donate to a larger community if possible
- GROW: Shibarium projects should not only burn and donate but also place a portion of profits into the Shib Doggy DAO Foundation which decides how the assets in the DAO wallet can best be applied.
Shibarium and BONE, SHIB: Tokenomics
$BONE is the native token selected to pay for gas transactions and reward Validators and Delegators within the Shibarium protocol. According to the Shiba Inu team, BONE will be the token that actively produces the operability of transactions in Shibarium. Simply put, $BONE will be used as the required gas token for all transactions in Shibarium.
The Shibarium team confirmed that Shibarium will require using $BONE to pay for transaction/gas fees and will burn $SHIB with every transaction (thereby making $SHIB more scarce, and potentially increasing its value). BONE is the native token adopted for the Shibarium protocol to cover gas transactions and compensate validators and delegators.
BONE can currently be obtained through BitKan. Its contract address is 0x9813037ee2218799597d83d4a5b6f3b6778218d9.
As for $SHIB, the coin will be burnt, meaning that it will become more scarce as time goes by.
Shibarium Release Date: When is Shibarium releasing?
As of February 2023, the community expects the Shibarium Beta launch on February 14, Valentine’s Day, but the official date was never announced.
Instead on February 14, the lead developer of Shiba Inu Shytoshi Kusama announced that the Shibarium project is ready for launch (meaning it is NOT launched on that day, but an announcement was made on that day to say that it WILL be launched).
In the announcement, Kusama disclosed that his lead developer has sadly lost his father, and expressed his disappointment in the lack of respect shown to him. According to him, the community should allow him to mourn his father in peace and then join the launch of Shibarium.
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