- The SHIB Army is very excited about the release of Shibarium, the Layer-2 scalability solution for Shiba Inu.
- Shibarium has several key advantages such as higher performance, lower fees, token utility and much more.
Shiba Inu was one of the most popular memecoins during the cryptocurrency bull run of 2021. Last year in 2022, Dogecoin’s rival faced a severe correction as altcoins crashed in the crypto winter.
However, Shiba Inu developers have been working to further expand the ecosystem. One of Shiba Inu’s most anticipated developments is Shibarium, their Layer 2 scalability platform. While the Shiba Inu developers have been working on this exciting development, the SHIB Army is still curious as to why the Shibarium is so important and what exactly it does.
As Shiba Inu approaches the launch of Shibarium, let’s understand exactly what this new layer of blockchain has to offer.
What is Shibarium?
Named Layer-2, Shibarium is not a blockchain, but an additional layer that runs on top of the Ethereum blockchain network. The main purpose of the Layer-2 Shibarium scalability platform is to support Shiba Inu’s additional transaction workload so that it is not solely dependent on the Ethereum blockchain.
One of the main problems with Ethereum’s scalability is that all transactions will be processed on-chain. This means that they will be recorded directly on the blockchain. This can lead to congestion due to limited space on the blockchain to store transactions.
This is where the Layer-2 Shibarium scalability solution comes into the picture. It works by allowing users to make off-chain transactions that can later be settled in on-chain batches. Since on-chain calculations occur less actively, it also allows for faster and cheaper transactions.
The Shibarium Layer 2 scalability solution also brings some interesting benefits to the platform. This includes increasing the performance of ecosystem users. Another important advantage is that Shibarium will implement a burning mechanism for SHIB coins. The mass supply of SHIB tokens is also one of the main obstacles to its development into a useful token. Shibarium will help alleviate 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. Also, as Shiba Inu plans to expand its footprint in the Metaverse, Shibarium could play a crucial role in this.
The Layer-2 Shibarium scalability platform also has its main utility token BONE.
Before the launch of Shibarium, Ethereum Whales are hoarding SHIB coins
On Tuesday, January 3rd, Shiba Inu (SHIB) appeared as Ethereum spots began collecting large amounts of SHIB coins. Also, the SHIB price rose on Tuesday due to a massive increase in Shiba Inu burn rates. Over 182 million tokens were burned within 24 hours. At press time, SHIB was trading at 0.000008261 and had a market capitalization of $4.5 billion.
— Shibburn (@shibburn) January 3, 2023