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What is Shibarium? All about Shiba Ino layer 2

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What is Shibarium? All about Shiba Ino layer 2

Shibarium is considered as a second layer blockchain for the Shiba Ino network, which is built on top of the Ethereum network. Shibarium mainnet was launched in August 2023. Interestingly, during the Testnet, 21 million users created wallets on Shibarium, which shows its huge fan base. Shibarium aims to attract users to a low-cost and high-speed ecosystem that mainly revolves around financial services and gaming.

In the growing world of blockchain technology, scalability and transaction fees remain prominent barriers to widespread adoption of this technology. While many networks like Ethereum struggle with these limitations, Shiba Ino’s active community launched Shibarium to solve this problem.

What is shibarium?

Shibarium is a second layer (L2) network for the famous Shiba Ino meme coin built on the Ethereum network. This network was developed by the Shiba Inu project and, like all layer 2 solutions, aims to increase scalability and reduce costs. The development of Shibarium made Shiba Inu a comprehensive ecosystem including Decentralized Exchange (DEX), Metaverse and blockchain games (such as Shiba Eternity).

Ryoshi, the anonymous creator of Shiba Ino, presented the plan for the Shibarium project in a now-deleted blog post in May 2021.

Memecoins are digital currencies inspired by internet trends and memes. This category of digital currencies has special features, including the following:

There are many price fluctuations;
They are largely influenced by society’s culture;
The community and fans are loyal;
They are usually in high supply.

Shiba Inu (SHIB) has a maximum supply of one quadrillion, which equals 1,000 trillion. The goal of the Shibarium project is to reorganize Shiba Inu as a multi-project and sustainable ecosystem and attract users to a low-cost ecosystem that revolves around financial services and gaming.

What is Shiba Ino?

What is Shibarium? All about Shiba Ino layer 2

What is Shibarium? All about Shiba Ino layer 2

Shiba Inu (SHIB) was launched in August 2020 and is the second most important meme coin by market capitalization after Dogecoin. The core values of this digital currency include decentralization, a “built for fun” philosophy, and a commitment to its community-driven development.

At the heart of Shiba Ino Tokenomics is the SHIB token, an ERC20 standard digital currency built on the Ethereum blockchain. It is worth noting that Shiba Inu has the largest total supply among leading altcoins with a total supply of one quadrillion.

Despite being classified under the category of memecoins, the Shiba Inu project has a significant ecosystem. For example, Shiba Inu has its own proprietary DeFi protocol called ShibaSwap, which brings it into the realm of NFTs and the metaverse.

Users of the Shiba Inno ecosystem can stake its main tokens, SHIB, BONE, and LEASH, and receive xSHIB, xLEASH, and xBONE tokens as a reward. The Shiba Inu development team demonstrates its continuous efforts to improve by launching a second layer network called Shibarium to increase the efficiency of the Shiba Inu ecosystem.

Shibarium features

The advantages of using Shibarium include higher transaction speed, lower fees, increased usage of tokens and development of decentralized applications (DApp). The most important features of Shibarium are summarized in the following:

Better speed in transactions
Lower fees
Comprehensive and complete ecosystem
Token use
Development of decentralized applications

Although the Ethereum network has been upgraded to a proof-of-stake (PoS) blockchain through the Merge update and the introduction of Ethereum 2, this secure and powerful blockchain still struggles with scalability issues.

Shibarium is also a proof-of-stake project designed to solve scalability problems. The launch of this second layer solution is expected to make Shiba Inno a profitable project with a long-term perspective. In the following, we will examine what unique features Shibarium has.
Better speed in transactions

By adding a layer 2 to the Shiba Inu ecosystem, Shibarium increases its throughput and brings significant growth to it. Shibarium significantly increases the speed of transactions.
Lower fees

High transaction fees have become a problem for anyone transacting on Ethereum. Sometimes, the fees go even higher than the transaction amount. For example, you may need to pay a hefty fee of $50 worth of Ether (ETH) for a small transaction worth $10. On the other hand, the cost of transactions in Shibarium is very small, making this network a very ideal and cost-effective option.
Comprehensive and complete ecosystem

With the implementation of Shibarium, Shiba Ino can no longer be considered just a meme coin; Because Shibarium ecosystem is very comprehensive and complete and includes several projects including Metaverse, decentralized exchange and blockchain games. Metaverse and Shibarium games are expected to attract many users, while its decentralized exchange injects more liquidity into the ecosystem.
Token use

The oversupply of Shib Token (SHIB) has been a huge hindrance to its growth, despite burning more than 40% of tokens. Shibarium solves this problem by introducing BONE token as the native coin of this network.

In addition to helping secure and verify transactions, Shibarium network validators are rewarded in the form of Boon tokens.

Therefore, every transaction in this new ecosystem will burn a Slope token, a very useful mechanism for controlling Slope’s top supply.
Development of decentralized applications

Decentralized applications are applications whose code runs on a decentralized peer-to-peer (P2P) network. Shiba Ino coin meme did not have the features and capabilities necessary for a native coin of such programs. Instead, Shibarium is technically capable of hosting decentralized application development.

How does shibarium work?

The shibarium ecosystem consists of various components, each of which we examine in detail here:

Shibarium blockchain
Metaverse and decentralized exchange
Shibarium coins

What is Shibarium? All about Shiba Ino Tier 2
Shibarium blockchain

The Shibarium blockchain is built on the Ethereum network and is a second layer solution; It means that it is made to reduce the computational load and perform part of the transactions outside the Ethereum chain.

The cost of Shibarium gas will be paid in the form of BONE tokens. Twenty million Boon tokens have been set aside as rewards for validators on Shibarium.

According to Shibarium’s official documentation (docs.shibariumtech.com), Shibarium’s proof-of-stake system consists of two critical layers:

Bor layer (Bor): This layer is compatible with Ethereum virtual machine, it is responsible for executing transactions and creating new blocks.
Heimdall layer: This layer is for validators. The Heimdall layer is responsible for reaching consensus and is built on the Tendermint consensus engine.

On the Shibarium network, users must lock 10,000 Bon Tokens in the network to be eligible for validation. Those interested in supporting the network without getting involved in running a node or validators can donate their tokens to validators. This process is called Delegation and users can earn money in this way.

Metaverse and decentralized exchange

Shytoshi Kusama, the main developer of the Shiba Ino network, introduced the Shiba Ino metaverse and the Shiba Eternity game in a blog post at shytoshikusama.medium.com. It is interesting to know that the creator of Shiba Ino, who was named Ryoshi, left the project in 2022, and then Shaitoshi Kusama, whose identity is also unknown, took over the leadership of the Shiba Ino network.

Shiba Inu’s Metaverse (SHIB Metaverse) is a vast and three-dimensional virtual space that has 11 hubs, all of which have different characteristics. In the hubs of this metaverse, users can create digital businesses, bring their physical business to the virtual world of metaverse, build commercial and residential structures, play innovative games and use decentralized finance or DeFi. This metaverse has a total of 100,595 pieces of land that will be opened over time.

To participate in land bidding and purchase process, users can use Metamask wallet. Bids and purchases must be made in Ethereum. In Metaverse hubs, users can search, discover, trade, sell and buy various assets.

ShibaSwap Decentralized Exchange (ShibaSwap DEX) also provides users with various features, including token exchange, NFTs exchange, asset staking, liquidity provision and long-term profit cultivation of receiving Boon tokens.
Shibarium coins

The Shibarium ecosystem has several coins with different roles:

SHIB: An ERC20 token that fuels the Shiba Inno network. Shib is the main token of Shiba Ino network. The price of this token has always fluctuated and has never crossed the border of one dollar.
BONE: is a governance token in the Shiba Swap decentralized exchange and a functional token in the Shibarium network. The supply of this token is limited to 230 million units.
LEASH: Users can stake this token and get rewards for it. The maximum supply of this token is 107,647 units.
TREAT: This digital currency is designed as a reward token. This token serves several purposes, one of which is to provide liquidity for the SHI stablecoin. In addition, Treat Token will replace BONE as a reward token on Shiba Swap and also provide rewards for participating in the Metaverse.
SHI: The Shibarium ecosystem will also have the SHI stablecoin. Of course, this stablecoin has not been launched yet. The purpose of SHI is to make payments and balance and prevent market fluctuations.

Frequently asked questions

How to stake in Shibarium network?

BONE token and Metamesh wallet are used for stake in Shibarium. Shibarium staking transactions are recorded in Ethereum for added security; Therefore, first you need to transfer the BONE token to the Ethereum Metamask account and then enter the Shibarium staking dashboard.
What is the minimum BONE token to start staking?

Currently the minimum amount to start staking is 1 BONE.