- 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.
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.
In the past 24 hours, there have been a total of 182,339,090 $SHIB tokens burned and 11 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. #shibarmy
— Shibburn (@shibburn) January 3, 2023