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Shiba Inu (SHIB) community, the second largest meme coin, has officially created an "intake portal"
What is Shibarium?
Shibarium is a future Ethereum-based layer-2 (L2) blockchain network for Shiba Inu. Shiba Inu, a memecoin, will be transformed into a whole ecosystem.
Ryoshi, the Shiba Inu's unknown inventor, suggested the Shibarium project in a now-deleted blog post in May 2021. On the Ethereum blockchain, the project seeks to construct a blockchain layer-2 solution. Shiba Inu will be transformed from a meme coin to a whole ecosystem that will feature a decentralized exchange (DEX), a metaverse, and blockchain games like Shiba Eternity.
Memecoins are cryptocurrency tokens that feature humorous or animated internet memes. These coins, which are often very volatile, are mostly driven by pop culture and have an abundant supply, resulting in massive inflation. Shiba Inu (SHIB) has a total supply of one quadrillion, or 1,000 trillion. Shiba Inu will be reorganized as a multi-project and stable ecosystem through the Shibarium portal.
Shibarium's creators have yet to announce a launch date for the project. However, an alpha version of the SHIB metaverse, a component of the project, was on exhibit from March 13 to 15 at SXSW 2023. The release was initially scheduled for February 2023, but it was postponed since the creators wanted to publish an error-free version after extensive testing in various stages.
What does Shibarium mean for Shiba Inu?
Shibarium provides benefits like faster transaction speeds, cheaper costs, improved token usefulness, and easy decentralized application (DApp) development.
Despite the Merge upgrade to a proof-of-stake (PoS) network, the Ethereum blockchain suffered with scalability, despite its strong security layer. Shibarium is a PoS initiative that will allow Shiba Inu to scale while remaining connected to the Ethereum network. Shibarium is projected to stabilize SHIB's value and turn Shiba Inu into a value-added enterprise with long-term possibilities.
Let's take a look at how Shibarium will unleash the meme coin’s potential.
Token utility
Despite the burning of more than 40% of the tokens, the large supply of SHIB has been a major impediment to its growth. Shibarium addresses this by making BONE the native currency. When Shibarium takes off, network validators will be compensated in BONE for safeguarding and verifying transactions. Furthermore, under the new environment, every transaction will use SHIB, providing a method for controlling the massively inflated quantity of SHIB.
Better transaction speeds
Shibarium, by adding layer 2 to the Shiba Inu ecosystem, will boost throughput, allowing the project to manage large expansion. Shibarium is projected to significantly increase transaction speed, while customers may have to wait a little longer for specific throughput figures.
Complete ecosystem
Rather than being a basic meme coin, the Shibarium ecosystem will be multifaceted, encompassing numerous initiatives like the SHIB metaverse, ShibaSwap DEX, and blockchain games. Users are likely to flock to the metaverse and games, while the DEX will improve liquidity.
Lower fees
High transaction costs have been an issue for anybody doing an Ethereum transaction. The cost is sometimes greater than the transaction amount. For example, for a US$10 transaction, one may be required to pay a hefty charge of US$50 in Ether (ETH). Petrol costs are anticipated to be eliminated with the deployment of the Shibarium layer-2 solution.
DApp development
Decentralized apps (DApps) are applications with backend code that run on a decentralized peer-to-peer (P2P) network. The memecoin, on the other hand, lacked the resources to function as a native coin of DApps. Shibarium aspires to create a strong ecosystem that includes a layer-2 solution in collaboration with Ethereum. It will give the technological capability for the development of DApps inside the ecosystem.
How will Shibarium work?
The new Shibarium will handle transactions while keeping Ethereum's security layer. Because Shibarium handles the majority of network activity, Ethereum will be spared the massive number of transactions that may otherwise overwhelm it. As a consequence, transactions will be speedier while remaining safe.
Before the use of PoS, Ethereum's limited throughput caused network congestion and drove up fuel prices to an exorbitant US$50-US$80 per transaction. The Merge increased network performance while decreasing costs. Still, L2 solutions are essential since the core blockchain must manage a steady influx of projects, which slows it down.
The Shibarium portal will contain a system to burn SHIB tokens paid as fees for carrying out transactions, which will stop the inflation of the SHIB currency and cause its values to rise. The price of tokens will stabilize and the number of coins in circulation will decline as a result.
To transmit tokens to one-way wallets, which take the tokens but never release them, use the method of coin burning. These coins are irretrievably gone. Coins are continuously burned in cryptocurrency projects over time to prevent inflation.