Shiba Inu is one of the largest altcoin projects in the cryptocurrency industry, having a loyal community of SHIB holders. Since its inception, it has witnessed many developments, ranging from the non-fungible token (NFT) collections to decentralized exchanges like ShibaSwap and now Shibarium Layer-2 Solution.
To that end, the project is approaching another key milestone: the release of Shibarium. It is an upcoming layer-2 solution that seeks to improve the Shiba Inu ecosystem by enabling speedier transactions at a reduced cost. But there are many unanswered uncertainties regarding Shibarium's release and utility.
So, get ready to dive deep into the fascinating world of Shibarium and discover how this cutting-edge layer-2 solution is set to shake up the entire Shiba Inu community. In addition, we’ll also look what are the use cases of this layer-2 solution and how it will boost the Shiba Inu ecosystem expansion.
What is Shibarium Layer-2 Solution?
Ryoshi, Shiba Inu's unknown creator, proposed the Shibarium project in a now-deleted blog post in May 2021. The project attempts to build a blockchain layer-2 solution on the Ethereum network.
This expansion has the potential to transform Shiba Inu from a meme coin to a whole ecosystem. In addition, the new ecosystem will also feature a decentralized exchange (DEX), a metaverse, and blockchain games like Shiba Eternity.
Basically, memecoins are cryptocurrency tokens that feature funny or animated internet memes. These coins, which are generally very volatile, are mostly driven by pop culture and have a large supply. This results in massive inflation. Shiba Inu (SHIB) has a total supply of one quadrillion, or 1,000 trillion.
Meanwhile, Shibarium's developers have yet to announce a launch date for the project. However, an alpha version of the SHIB metaverse was on exhibit from March 13 to 15 at SXSW 2023.
The release was originally scheduled for February 2023. However, it was postponed since the developers wanted to launch an error-free version after extensive testing in various stages.
How Shibarium Works?
The Shibarium that is about to be launched will operate by managing transactions in a way that maintains Ethereum's security layer. Since most network activities will be managed by Shibarium, Ethereum won't have to handle the overwhelming number of transactions that could potentially overwhelm it. As a result, transactions will be faster but still secure.
Prior to implementing PoS, Ethereum's limited transaction processing capacity led to network congestion, causing gas fees to soar to an exorbitant range of $50 to $80 per transaction. The integration of the Merge upgrade increased the network's transaction throughput and reduced fees.
However, as the main blockchain is burdened with a constant flow of projects, the need for L2 solutions remains crucial to prevent further slowdowns.
The Shibarium platform plans to prevent the SHIB coin from experiencing inflation. And to increase its value by incorporating a system that involves destroying SHIB tokens used as fees during transactions. This will decrease the number of coins available in circulation and maintain a steady price for the tokens.
Coin burning is a technique that permanently removes tokens from circulation. This transpired by sending them to wallets that cannot spend them. This process is a way to prevent inflation in cryptocurrency projects.
Benefits of Shibarium Blockchain
The Shibarium blockchain will bring numerous advantages. Here are a few examples:
- Cost-effectiveness: The gas fees for Shibarium will be atypically affordable, and users will have choices to lower them even more.
- Security: By virtue of its decentralized nature, Shibarium provides an extremely secure choice for sharing confidential data that is impervious to tampering.
- Transparency: It will be possible for users to observe and manage transactions.
- Efficiency: Shibarium will be able to execute transactions as soon as possible.
Among all cryptocurrencies, Ethereum stands out due to its exceptionally high gas fees. This is causing discomfort among Shiba Inu users who can only address the issue through a Layer 2 solution. Since SHIB depends on Ethereum's blockchain.
To enable quick and affordable transactions required for gaming, enhancing efficiency is crucial. Additionally, if Shibarium can effectively act as a scaling solution, it can potentially make the SHIB ecosystem more attractive to large corporations that need to perform numerous daily transactions.
When Will Shibarium Layer-2 Solution Be Launched?
During the alpha testnet phase, the developers conducted a successful private launch of Shibarium and are now primarily focusing on developing a wallet tool to prepare for a full launch.
The Layer 2 solution has also been tested publicly and was considered a success by the developers.
Investors and potential investors have been eagerly awaiting the official launch date for Shibarium on the Ethereum mainnet, but the developers have been unable to provide a specific date due to uncertainties surrounding the development timeline. Despite months of anticipation, the launch remains imminent but undefined.
Even though the exact date of release is not yet known, there is more information available now. The main developer of Shibarium, Shytoshi Kusama, hinted on Twitter that the launch will happen "soon". However, the Shiba Inu community believes that the Shibarium layer-2 solution will most probably launch in May 2023.
How Will Shibarium Impact Shiba Inu Ecosystem?
The sole beneficiary of Shibarium is Shiba Inu. Presently, Shiba Inu is perceived as a meme coin, a type of cryptocurrency that serves as a meme and attracts a lot of attention initially but eventually loses popularity.
Typically, meme coins are viewed as a "pump-and-dump" choice, where holders buy them with the intention of selling for profit when their value rises.
In addition, the burn mechanism of Shibarium is expected to stabilize and potentially increase the price of Shiba Inu, which may diminish the token's status as a meme coin. There are examples of cryptocurrencies, like Floki Inu, that were initially criticized as meme coins but eventually became viable investments.
Furthermore, reducing transaction fees could lead to more transactions within the Shiba Inu ecosystem, attracting new crypto traders and potentially benefiting the value of the tokens.
The Future of Shibarium Layer-2 Solution
If Shibarium successfully meets its objectives, it will have a significant impact on the Shiba Inu ecosystem, leading to the stabilization or even growth of token values, as well as faster and more cost-effective transactions. Additionally, it will establish a more decentralized exchange to enhance liquidity.
However, predicting the precise outcomes of ecosystem-focused apps and services built on the foundation of Shibarium is not possible. These apps will allow developers to explore innovative ways of using blockchain technology. Nevertheless, it is highly likely that these apps will enhance the ecosystem's strength.
Though many people consider Shiba Inu as a meme coin, it has already outgrown its initial popularity. It has now spread to create a full ecosystem, with tokens such as LEASH and BONE providing functions that SHIB could not manage alone.
Shibarium offers the opportunity to use and grow the ecosystem by providing faster transactions, improved security, and other benefits. Developers have worked tirelessly to ensure that this much-anticipated blockchain solution gets off to a flying start.
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