Shiba Inu: Shibarium is on the way and will solve scaling problems in trillion-$-market – Impact on SHIB price

  • The SHIB Army is quite excited about the launch of Shibarium, the Layer-2 scalability solution for Shiba Inu.
  • Shibarium brings along some key benefits like higher throughput, lower fees, token utility, and much more.

Shiba Inu was one of the most celebrated memecoins during the crypto bull run of 2021. Last year in 2022, the Dogecoin-competitor faced severe correction as altcoins plummeted amid the crypto winter.

However, the Shiba Inu developers have been working on expanding the ecosystem further. One of the most awaited developments for Shiba Inu is its Layer-2 scalability platform Shibarium. While Shiba Inu developers have been working on this exciting development, the SHIB Army is still curious to know why Shibarium is so important and what it exactly does.

As Shiba Inu is closing up to the launch of Shibarium, let’s understand what exactly this new-layer blockchain has to offer.

What Is Shibarium?

Dubbed Layter-2, Shibarium is not exactly a blockchain but an additional layer that runs atop the Ethereum blockchain network. The basic purpose of the Layer-2 scalability platform Shibarium is to take the extra load of Shiba Inu transactions so that it doesn’t solely rely on the Ethereum blockchain.

One of the major issues with the scalability of Ethereum is that all the transactions will be processed on-chain. It means that they will be recorded directly on the blockchain. This might lead to congestion due to the limited amount of space on the blockchain to store transactions.

Here’s where the Layer-2 scalability solution Shibarium comes into the picture. It works by allowing users to perform off-chain transactions which can later be settled on-chain in a batch. Since on-chain settlements happen less actively, it also allows faster and cheaper transactions.

The Layer 2 scalability solution Shibarium also brings along some interesting benefits to the platform. This includes higher throughput for the ecosystem’s users. Another major benefit is that Shibarium will introduce a burning mechanism for the SHIB coins. The massive supply of SHIB tokens is also one of the major obstacles to its transformation into a utility token. Shibarium will help alleviate some of this problem.

Follow us for the latest crypto news!

Some market players also believe that Shibarium can play a crucial role in the development of decentralized applications (DApps) on the Shiba Inu platform. Besides, as Shiba Inu plans to expand its footprint in the Metaverse space, Shibarium can play a crucial role in this matter.

The Layer-2 scalability platform Shibarium has also got its principal utility token BONE.

Before Shibarium Launch, Ethereum Whales Scoop SHIB coins

On Tuesday, January 3, Shiba Inu (SHIB) popped up as Ethereum whales started scooping a large number of SHIB coins. Also, the SHIB price jumped on Tuesday due to a massive surge in the Shiba Inu burn rate. Over 182 million tokens were burned in just a matter of 24 hours. As of press time, SHIB is trading at a price of 0.000008261 and a market cap of $4.5 billion.

Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.

About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

Comments are closed.