What is Shibarium Blockchain? Shiba Inu’s Layer-2 Solution Explained

There is a new player in the blockchain space that is making waves. Shibarium Blockchain, which is planned to be released in 2022 by the Shiba Inu community, is a Layer-2 solution that promises to be faster and more scalable than current options. Shiba Inu and its ecosystem are currently residing on Ethereum Network. In this article, we will explore what is Shibarium Blockchain and give a brief overview of Shiba Inu and its ecosystem. We will also take a look at the utility of various dog themed Shiba Inu tokens within the Shiba Ecosystem and what is expected to change with Shibarium Blockchain.

What is Shibarium Blockchain? Shiba Inu’s Layer-2 Solution

What is Shibarium Blockchain

Ryoshi, the creator of the dog-centered Shiba Inu token, is eager to expand its value beyond just a meme coin after its successful debut and devoted following. Shiba Inu (SHIB) is the primary utility/meme token within the Shiba Ecosystem, which is oftentimes coined as the “Dogecoin killer”. Shiba Inu together with the other tokens within the ecosystem have found initial utility within the ShibaSwap DEX.

Furthermore, Ryoshi announced Shiba’s future development plans for the Shibarium blockchain layer-2 solution in late 2021. Shibarium will also incorporate the new Shiba stablecoin, SHI.

Although the name indicates that Shibarium Blockchain will be an independent blockchain, that’s not entirely correct. Shibarium is a layer-2 protocol that optimizes the Ethereum main chain experience by operating on top of the best smart contract platform, Ethereum. In other words, Shibarium Blockchain will be another sidechain or scaling solution on top of the Ethereum network similar to Arbitrum, Optimism and Polygon.

According to the Shib creator, “The road between a Layer-2 and its blockchain is thin,” the group claims, Shibarium aims to combine ideas from Polygon and BNB Chain (former BSC).”

The transaction process is separated into layers between layer 1 chain and layer 2 protocol. As a result, Shibarium’s objective is to significantly decrease the costs of transactions and interactions on the Ethereum Network. Furthermore, this will aid in reducing network congestion when many users transact simultaneously.

With exposure and adoption of its new protocol, the Shiba Inu token’s (SHIB) value propositions will presumably improve. For building the Shiba Inu Metaverse, GameFi and DeFi make Shibarium blockchain layer-2 technology ideal since transactions are ultra-fast and low-cost. Currently, the SHIB token is operating on Ethereum as an ERC-20 token. After the Shibarium protocol is launched launch, the tokens will migrate to Shibarium. The same applies to the whole Shiba Ecosystem and tokens.

With regards to token utility, according to various sources, the BONE tokens seem to be the more likely candidate to become the native network currency. This implies that validators will be rewarded in BONE and users will need a BONE token to pay for shibarium’s transaction fees. A recent governance proposal that passed, paused the BONE rewards given to liquidity providers of ShibaSwap. This implies that Shibaswap will stop to mint bone tokens, with the intention to reserve the remaining tokens to be given as incentives to validators of the Shibarium Blockchain.

What is a Layer-2 Scaling Solution?

Shibarium Blockchain - Layer 2 Scaling Solution

A Layer-1 network in a decentralized ecosystem is a blockchain, whereas a Layer-2 integration is a third-party implementation that may be used with a Layer-1 blockchain. Bitcoin, Ethereum, and Solana are all examples of Layer 1 blockchains. To improve scalability, layer 1 scaling technologies add to the base layer of the blockchain protocol. Several approaches are currently being explored and implemented to improve the scalability of blockchain networks directly.

Layer-2 solutions refer to network or technology systems that operate on top of an underlying blockchain protocol to improve scalability and efficiency. This sort of scaling technology entails transferring a portion of a blockchain’s transactional burden to an adjacent system architecture, which then handles the bulk of the network’s processing and only reports back to the main blockchain at last. The majority of data processing is abstracted to auxiliary architecture, allowing the basic layer blockchain to become less congested — and, in the end, more scalable.

In the majority of the cases, Layer-2 Scaling Solutions are needed when the underlying network does not provide sufficient performance which leads to slow transaction processing, high gas fees, and poor user experience. Layer 2 solutions aim to provide a solution to the three aforementioned problems. 

According to the evidence found so far, Shibarium Blockchain will be a Layer-2 Scaling solution on top of Ethereum.

When will Shibarium Blockchain Launch?

There’s currently no official release date for Shibarium Blockchain just yet, but it could launch as early as mid-2022.

Although initially Shibarium Blockchain was supposed to be released at end of June 2022, recent sources indicate that the Shibarium protocol won’t be ready to be released in June. Instead, the whitepaper seems to be more likely to be released at that time. Certainly, developing a blockchain layer 2 Solution is not as easy as issuing a token or developing a decentralized exchange.

What is Shiba Inu?

Shibarium Blockchain - Shiba Inu
Shiba Token graphics (source: Shiba Inu official website)

An anonymous creator named Ryoshi launched Shiba Inu, a cryptocurrency meme token based on the Doge meme, which features a Shiba Inu dog. It even refers to itself as the “Dogecoin killer.”

The white paper (sometimes known as a “woofpaper”) for Shiba Inu refers to it as a community-based cryptocurrency project. This implies that the decentralized ShibArmy, or “Shib Army,” is in command of the cryptocurrency and its growth.

This isn’t particularly new in the world of cryptocurrency. Other decentralized communities have other cryptocurrencies, so while Shiba Inu’s white paper characterizes it as a groundbreaking concept, it’s no more innovative than what other projects have done before.

Shiba Inu was originally created as an alternative to Dogecoin, but there are several differences. Shiba Inu is based on the Ethereum blockchain, allowing it to run smart contracts. Shiba Inu can work with decentralized applications thanks to smart contracts. Because Dogecoin lacks this capability, it is far less versatile in terms of what it may accomplish.

A Brief Overview of Shiba Inu Ecosystem Tokens

Shibarium Blockchain - Shiba Inu - SHIB token - BONE token - LEASH token
Shiba Token graphics (source: Shiba Inu official website)

Shiba Inu Ecosystem incorporates currently 3 primary tokens. Among the Shibarium token family, the one who seems to be getting most of the utility with the release of Shibarium Blockchain is BONE. BONE will be used as the primary currency of the Shibarium Blockchain. This implies that BONE will be used for paying gas fees when using the network, for securing the network by staking and delegating as well as incentivizing and rewarding validators.

Shiba Inu Token – SHIB Token

SHIB is the primary utility token of ShibaSwap and has a fixed supply of one quadrillion. SHIB tokens, which were launched in August 2020, are a competitor to Dogecoin, the most popular cryptocurrency. The platform’s logo depicts a Shiba Inu, a Japanese dog breed that serves as the mascot.

The SHIB token is the first cryptocurrency that enables users to store trillions of tokens. In the future, the developers of Shiba Inu intend to issue additional cryptocurrencies. Despite receiving all of the attention, SHIB is only one of three tokens in Shiba Inu’s ecosystem.

Doge Killer Token – LEASH Token

On the other hand, LEASH was designed to be a rebase token at first. However, the team decided to get rid of the rebase and allow LEASH to reach its full potential. It is the polar opposite of the spectrum, with a total supply of only 107,646 tokens.

The scarcity of leash tokens adds to its popularity since it has a limited number. In exchange for liquidity, the second token rewarded on ShibaSwap is LEASH, which offers several advantages to holders.

BONE Token

When it comes to circulating supply, the BONE token is in the middle of LEASH and SHIB. There are 250,000,000 BONE tokens in total, with 100,000 set aside for future voting on new concepts and initiatives by the ShibArmy.

BONE so far has been used to reward liquidity providers in ShibaSwap, however, this functionality was recently decided by a governance vote to stop. Instead, the remaining BONE tokens will be used to incentivize validators on Shibarium Blockchain.

What is SHI coin? The Shiba Inu stablecoin

Shibarium Blockchain - Shiba Inu - SHIB token - BONE token - LEASH token

The SHI token is a future stablecoin that will work on both Ethereum and Shibarium Blockchain after the project launches. Unlike most stablecoins that are pegged to $1, Shiba Inu stablecoin SHI will be price-pegged to 1c or $0.01.

According to the shiba project lead, Shytoshi Kusama, the goal of the Shiba Inu stablecoin SHI is to become a store of value and used as a method of payment to facilitate the global exchange of value.

Shiba Inu’s stablecoin is a decentralized token that can be used for exchanging goods without concern of the change in value day to day, or even minute to minute. This is especially important when dealing with businesses that have invoices that get paid 30 days out, or when dealing with transactions that aren’t instantly settleable (credit cards). The group is currently looking for the best approach to put this token into practice.

The Shiba Inu stablecoin SHI may utilize the LEASH token as its governance token, according to rumors. However, nothing has been confirmed yet. The team said that they are striving to achieve their stablecoin’s goal while also giving more power and utility to one of their tokens, LEASH. 

What is ShibaSwap?

Shibarium Blockchain - Shibaswap
Shibaswap graphics (source: Shiba Inu official website)

Shiba Inu (SHIB) has firmly established itself as a leading meme coin in the crypto world, thanks to massive gains in 2021. The team behind the dog-themed cryptocurrency built ShibaSwap with the goal was to expand the meme currency’s ecosystem so that it may be used further and so that it might become more than simply a meme coin

According to ShibaSwap’s whitepaper, codenamed the WoofPaper, ShibaSwap’s aim is to provide a secure location to exchange your valuable cryptocurrency while keeping the system decentralized. The community will continue to expand this ecosystem in order for it to bring more and more interested customers to the ShibaSwap platform.

ShibaSwap is a decentralized cryptocurrency exchange (DEX), similar to other DEXs. This means you may trade tokens directly with each other on ShibaSwamp without the need for a counterparty.

ShibaSwap has all of the features you’d expect in a modern DEX, such as token swapping, liquidity provision, governance, staking, yield farming, and an NFT marketplace.

In addition to Shiba Inu coin, the ShibaSwap team included the other two ERC20 tokens of the ecosystem, Bone ShibaSwap (BONE) and Doge Killer (LEASH), into the design.

ShibaSwap was developed in July 2021 and runs on the Ethereum network. ShibaSwap allows you to trade ERC-20 coins, stablecoins, and a dozen more tokens. You may also make passive cryptocurrency income by using a variety of abilities to earn money for your assets.

According to various sources, ShibaSwap will be migrated to the Shibarium Blockchain Layer-2 Solution, once the network is ready. This will allow users to use ShibaSwap on Shibarium L2 with lower transaction fees compared to the Ethereum Network.

Closing Thoughts

Closing, Shibarium Blockchain is a Layer-Two solution that is being developed by the team behind Shiba Inu (SHIB). Shibarium will use BONE as its native token to incentivize validators on the network and be used as the primary token for users to pay for transaction fees. Using Shibarium, users should expect lower transaction fees compared to the solution that is in place today. That’s in general one of the main value propositions of layer 2 solutions – low fees.

With regards to the Shibarium release date, the Shiba Inu development team has not provided any exact dates yet. Therefore we need to wait and see when the Shibarium scaling solution will go live.d

Considering that Shibarium Blockchain is a smart contract platform, then once it goes live we should expect a lot of blockchain programmers to join the network and develop projects, from DeFi protocols to Metaverse applications.

With the Shiba Inu ecosystem continuing to grow, existing tokens receive more primary utilities that will benefit Shib token holders within the Shiba ecosystem and drive community engagement. 

We hope you enjoyed reading this article and found it informative. Stay tuned for more news and updates about the Shibarium project and blockchain technology.

Aris Ioannou
Aris Ioannouhttps://coinavalon.io
Aris created Coinavalon with the purpose of helping the average person navigate the decentralized web. Aris has been passively in the space since 2017 and full time since late 2020. Before Coinavalon, Aris worked as a Business & IT Architect in the financial services sector. Aris holds an MSc in Advanced Computing from Imperial College London, a BSc in Computer Engineering from University of Cyprus and currently pursuing an MBA degree from CIIM.

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