Shibarium: What Is It & How Will It Impact SHIB?

The Ethereum blockchain is one of the most versatile and widely used blockchain networks in the world today. However, its lack of scalability has become a major limitation to its potential as a major platform for decentralized applications. Shibarium is being developed to help address this problem and aid Ethereum to make transactions faster and cheaper on the layer-2 blockchain.

In this article, we'll explore how Shibarium works, Shibarium utility tokens, the benefits of Shibarium, and how Shibarium will impact the price of Shiba Inu.

What is Shibarium and How Does it Work?

Shibarium is a secondary blockchain (layer-2) network built on the Ethereum blockchain, designed to handle most transactions involving Shiba Inu (SHIB) and other tokens within its ecosystem. Shibarium works by splitting transactions between the Layer 1 (Ethereum) and Layer 2 (Shibarium) blockchain. 

A layer-1 is a base blockchain, the framework on which layer-2 networks are built. Examples of layer-1 blockchains are Bitcoin, Ethereum, Solana, etc. A layer-2 is a separate blockchain that extends Ethereum and inherits the security guarantees of Ethereum, examples of layer-2 blockchains (networks) are the Lightning Network for Bitcoin and Rollups for Ethereum.

Shibarium layer-2 blockchain helps to process transactions on the Shiba ecosystem, thus reducing the number of transactions on Ethereum and enhancing the speed of decentralized applications. This connection to Ethereum will keep SHIB holders connected to the more extensive DeFi system. 

The burning of SHIB tokens is possible on Shibarium, and this deflationary approach could be beneficial for the token’s price and growth. This deflationary effect is achieved by reducing the available supply of SHIB tokens, making each token more valuable.

Layer 2 solutions are a set of techniques that leverage the security of the layer 1 blockchain while providing faster and cheaper transactions. Rollups and transaction channels are two of the solutions used to achieve this, allowing users to bypass the layer 1 network and its associated costs. 

Shibarium also provides a platform for the Shiba Inu metaverse and allows NFTs to be traded and used in Metaverse games. Shibarium native coin will be the famous Shiba Inu which can be used to purchase and sell assets in the ecosystem, used as transaction fees in processing transactions of cryptocurrency tokens in the Shiba Inu ecosystem, and used as a governance token.

The potential of the Shiba Inu token (SHIB) is expected to grow as the new protocol is adopted. Transactions are expected to be both fast and low-cost, making the Shibarium blockchain layer-2 solution a perfect fit for gaming and metaverse applications. The SHIB token is currently an ERC-20 token on Ethereum but will migrate to the Shibarium layer-2 blockchain after the protocol's launch.

In conclusion, Shibarium is a complementary blockchain system that has the potential to reduce costs and improve the user experience for SHIB holders. By leveraging the security of Ethereum and introducing deflationary tokenomics, Shibarium could increase the value of SHIB tokens and help the entire ecosystem.

Shibarium Utility Tokens

Shibarium layer-2 blockchain has two utility tokens in addition to its native coin Shiba Inu. Each type of token in the ecosystem allows holders to increase their return on investment in different ways. ShibaSwap, Shiba Inu's native decentralized exchange (DEX), allows holders to trade tokens, participate in governance, earn rewards, and purchase NFTs. Below are the three Shibarium utility tokens.

1. BONE Token: BONE is the leading utility token for ShibaSwap, the decentralized ecosystem of the Shiba Inu ecosystem. BONE is also used as a governance token for ShibaSwap, it provides users with voting rights on protocol-level proposals. BONE is also used to pay gas fees on ShibaSwap DEX. 

The total supply of BONE tokens is capped at 230 million with 10% allocated to development and marketing. To ensure the security of the Shibarium network, the remaining 20 million BONE tokens will be used to reward its validators. By limiting the total supply of BONE tokens to 230 million, the community has taken steps to prevent over-minting.

2. Shiba Inu Token: The SHIB token, developed on the Ethereum blockchain has become a worldwide phenomenon since its launch in late 2020. SHIB is the main token of the Shiba ecosystem, offering the power of decentralized, community-led currency to millions of people globally. SHIB is accepted as a payment method in hundreds of locations, and can be used directly or through third-party intermediaries. 

3. LEASH: LEASH is a limited-supply token, designed for loyal supporters of the ecosystem. Holders can benefit from exclusive perks, such as BONE rewards for liquidity providers on ShibaSwap, access to Shiboshi NFT minting, and early access to Shib's Metaverse land sales.

ShibaSwap

ShibaSwap, the next evolution in DeFi platforms, brings SHIB, LEASH, and BONE together. ShibaSwap provides ShibArmy (Shiba investors) with innovative passive income rewards, such as DIG (provide liquidity), BURY (stake), and SWAP tokens to gain WOOF Returns. With ShibaSwap, users can easily access NFTs and portfolio trackers to make navigating the crypto world simple and intuitive.

How will Shibarium impact SHIB?

Shibarium is set to have a major impact on the Shiba Inu (SHIB) ecosystem. Transactions will be faster and cheaper, resulting in more adoption. Lower transaction fees will increase SHIB token values by boosting the number of transactions and drawing in new crypto traders.

Shibarium also brings the SHIB token closer to becoming a utility asset by decreasing its supply, thereby increasing its value and transforming it from a meme token to a utility asset. This will make SHIB less volatile and cause its value to grow as more SHIBs are burnt on the Shibarium layer-2 chain. 

In conclusion, Shibarium will have a tremendous effect on SHIB, aiding its transition from a meme token to a utility asset.

Benefits of Shibarium

1. Lower Transaction Fees: As a layer-2 blockchain, transaction fees won’t be charged in ETH (the layer-1 blockchain) but in the Shibarium native cryptocurrency Shiba, thus cheaper.
2. Faster Transactions: Shibarium will help to process transactions on the Shiba ecosystem and make transactions faster whilst inheriting the security guarantees of the Ethereum blockchain.
3. Burn Mechanism for SHIB tokens: The burning of SHIB tokens is possible on Shibarium, and this deflationary approach could be beneficial for the token’s price and growth.
4. Supports Decentralized Applications: Shibarium will provide the infrastructure for decentralized applications (DApps) to be built on, increasing the potential of SHIB and other utility tokens in the ecosystem.
5. Metaverse: Shiba Inu unveiled its metaverse project, with Shibarium essential for successful implementation and increased efficiency.