What is Shibarium, and what does it mean for Shiba Inu?
The advantages of using Shibarium include higher transaction speeds, lower fees, increased token utility and seamless decentralized application (DApp) development.
Despite its upgrade to a proof-of-stake (PoS) blockchain through the Merge, the Ethereum blockchain still struggled with scalability, despite its robust security layer. Shibarium is also a PoS project, which will help Shiba Inu to scale while keeping it hooked to Ethereum blockchain. Shibarium is expected to stabilize the value of SHIB and transform Shiba Inu into a value-added project with long-term prospects.
Let us see below how Shibarium will unlock the potential infused in the memecoin.
Better transaction speeds
Adding layer 2 to the Shiba Inu ecosystem, Shibarium will increase throughput, enabling the project to handle significant growth. Shibarium is expected to boost the transaction speed considerably, though users will have to wait a bit more for precise information on throughput.
High transaction fees have been a problem for anyone performing a transaction on Ethereum. Sometimes, the fee is higher than the transaction amount. For instance, one might need to pay a steep fee of $50 worth of Ether (ETH) for a small transaction of $10 in value. The introduction of the Shibarium layer-2 solution is likely to make gas fees negligible.
Contrary to being a mere memecoin, the Shibarium ecosystem will be comprehensive, comprising several projects, including SHIB metaverse, ShibaSwap DEX and blockchain games. The metaverse and games are expected to pull in users, while the DEX will provide better liquidity.
The abundant supply of SHIB, despite the burning of more than 40% of the tokens, has been a huge hindrance to its growth. Shibarium handles this by introducing BONE as the native coin. When Shibarium takes off, validators on the network will get paid in BONE for securing and validating transactions. Moreover, in the new ecosystem, every transaction will consume SHIB, a mechanism to control the hugely inflated supply of SHIB.
DApps are decentralized applications with backend code executing on a decentralized peer-to-peer (P2P) network. The memecoin, however, simply did not have the wherewithal to act as a native coin of DApps. Shibarium intends to develop a robust ecosystem comprising a layer-2 solution in conjunction with Ethereum. It will provide the technical ability to create DApps within the ecosystem.