The Shibarium blockchain layer-2 solution is a work-in-progress blockchain network designed by the Shiba Inu development team. Focusing on scaling its current host chain, Ethereum, Shibarium will be a layer-2 protocol promising faster transactions with lower costs. Additionally, Shibarium will be a development playground for blockchain programmers. Plus, the protocol will facilitate the Shiba Inu NFT gaming and metaverse applications.
In this article, we are going to dive deep into the Shiba Inu ecosystem and explore the Shibarium blockchain layer-2 solution. As the network is yet to go live, we’ll look at some of the features and protocols that the team plans to introduce, ahead of the launch. Also, we’ll discuss the potential for the future of Shibarium.
For readers who would like to learn a little more about the foundations of how the crypto industry works, see our “What is Crypto?” and What is Bitcoin?” articles! Or, why not check out our Blockchain & Bitcoin Fundamentals course at Moralis Academy for a deep dive into the history and basics of this cutting-edge technology. Start your crypto journey with the largest blockchain and Web3 education platform online, Moralis Academy!
What is the Shibarium Blockchain Layer-2 Solution?
Following the successful launch and loyal following of the dog-themed Shiba Inu token, its founder, Ryoshi, is determined to extend its value beyond solely a memecoin. Often dubbed the “Dogecoin killer”, Shiba Inu (SHIB) is the utility token of ShibaSwap, a decentralized exchange (DEX) on Ethereum. Moreover, in late 2021 Ryoshi announced Shiba’s latest development plans for the Shibarium blockchain layer-2 solution. Also, Shibarium will incorporate the new Shiba stablecoin, SHI.
The name “Shibarium blockchain” is not an entirely accurate description of its infrastructure. Operating on top of the leading smart contract chain, Ethereum, Shibarium is a layer-2 protocol optimizing the main chain experience. Following Ryoshi’s announcement blog post, there has been confusion as to whether Shiabrium will be a blockchain or layer-2 protocol. Stating that “the road between a Layer-2 and its blockchain is thin”, Shibarium is set to blend aspects from the likes of Polygon and Binance Smart Chain (BSC).
Accordingly, the transaction process occurs in layers between the layer 1 chain and layer 2 protocol. Resultantly, Shibarium aims to drastically reduce the costs of transacting and interacting on the Ethereum Network. Further, this will aid in reducing network congestion, when large numbers of users are transacting simultaneously.
The value propositions for the Shiba Inu token (SHIB) will theoretically increase with exposure and adoption of its new protocol. Plus, with super-fast and low-cost transactions, this makes the Shibarium blockchain layer-2 solution ideal for gaming and metaverse use cases. Currently, the SHIB token is operating on Ethereum as an ERC-20 token. However, after the protocol’s launch, the tokens will migrate to Shibarium.
What is Shiba Inu?
Shiba Inu is an Ethereum-based cryptocurrency using a popular dog-theme narrative for its ecosystem. Designed to be far more than simply a memecoin with zero utility, Shiba Inu (SHIB) set new records with a year-to-date gain of nearly 54,000,000%. This means investors who bought $2 worth of SHIB at the beginning of the year would be millionaires after hodling throughout that period. Founded by a pseudonymous developer, Ryoshi, the project is striving toward complete decentralization. The founder makes this clear from day one, stating in their blog post, “…I am nobody. I am just some guy of no consequence tapping at a keyboard, and I am replaceable, I am Ryoshi,”.
According to Etherscan, a blockchain explorer and analytics platform, there are more than one million active SHIB token wallet addresses. Initially, the supply was one quadrillion SHIB tokens, with 50% locked in Uniswap. The remaining half was sent to Ethereum co-founder Vitalik Buterin’s wallet address. During the Covid-19 pandemic, Buterin donated more than his SHIB holding to charity. Then, he burned the remaining 40%.
However, there’s more to the Shiba ecosystem than solely SHIB. The project also uses LEASH (107,646 available tokens). Originally a rebase token, the project removed the rebase protocol and reduced the supply. Now, LEASH is the second token for incentivization on the ShibaSwap platform. Its other token, BONE, offers protocol governance rights for its SHIBArmy community to propose and vote on updates via the projects’ Doggy DAO (decentralized autonomous organization).
The Shiba Inu ecosystem now includes a decentralized exchange (DEX), non-fungible token (NFT) gaming platform, and metaverse application. Moreover, in partnership with Unification Foundation, which offers blockchain solutions for enterprises, the Shibarium blockchain layer-2 solution will accelerate the awareness, adoption, and thus value of the Shiba Inu crypto asset.
Blockchain Technology and Layer-2 Solutions Overview
Are you familiar with the narrative and community sides of crypto more so than the technical side? No problem! Here, we provide a brief overview of the underlying technology of Shiba Inu and why Shibarium is a welcome addition to the industry!
Blockchain technology is a form of distributed ledger technology (DLT). In short, this means there is a global community of computers (nodes) working collaboratively to verify and validate transactions in a peer-to-peer network. As such, there is no need for any third-party intermediaries. Also, as a decentralized network, it must achieve a majority vote for any adjustment or update in the protocol. Thus, blockchain presents novel opportunities to cryptographically prevent censorship in transacting. Plus, all transactions are immutable, meaning they cannot be altered, adjusted, or removed. Resultantly, blockchain technology offers valuable use cases across an array of industries for its security, transparency, and optimization of accounting. Save our Blockchain Explained article for a deep dive into blockchain later!
The first blockchain to launch was Bitcoin in 2009. The design of the network is solely a peer-to-peer payments channel, sending funds from wallet A to wallet B. However, in 2015, the launch of the Ethereum Network evolved the blockchain landscape. Ethereum introduced smart contracts and a decentralized playground for developers to build, test, deploy, and manage an array of applications (dapps). However, Ethereum (alongside the majority of other blockchains) faces the common “blockchain trilemma”. In short, this means it is difficult for blockchains to scale without compromising on either decentralization or security.
Resultantly, a variety of Ethereum scaling solutions has emerged. Alongside Ethereum 2.0 updates to its infrastructure to drastically increase throughput, other scaling solutions include sidechains and layer-2 networks.
Shibarium Blockchain Layer-2 Solution Utility
Although there has been hype for the launch of Shibarium since the summer of 2021, there is little information available regarding the infrastructure, specific technologies, or a launch date! However, we do know that the layer-2 solution will assist in scaling the number one smart contract-compatible chain, Ethereum. Plus, in the blog post announcing the Shibarium project, Ryoshi stated plans for the network to have “minimal, or even zero” transaction fees. Also, Shytoshi Kusama, the Shibarium Project Lead, said in a Shiba Discord AMA that “Shibarium will offer low fees for every service, game or whatever that builds on it”.
For Shibarium to achieve its goals, it will incorporate two primary tokens, BONE and SHI. For readers yet to dip their toes into crypto investing, see our How to Invest in Crypto article for great tips on navigating the field of decentralized finance (DeFi). Alternatively, our Master DeFi in 2022 course provides industry-expert-led tutorials for experimenting with DeFi protocols for the first time. Or, why not see our DeFi Explained article first? This gives readers insights into the fundamental operations of DeFi platforms and how the underlying technology works. Check out Moralis Academy and our free Moralis blog packed full of educational material to help stay safe when exploring the world of crypto.
Besides being the Shiba ecosystem’s governance token, BONE will have new utilities when the Shibarium layer-2 solution launches. Shibarium will use BONE as its native token to focus on decentralization and create a new even playing field. In the Shibarium announcement blog post, Ryoshi shared their view for a fresh start for the platform “in which we will not have to be concerned about over-arching whale sacks”.
BONE has a maximum supply of 250,000,000 tokens with a circulating supply of 62,343,179, according to CoinGecko. The tokenomic design for BONE is to have the median supply of Shiba’s three-token ecosystem (SHIB, LEASH, and BONE). Upon the launch of Shibarium, all SHIB token holders will gain access to exclusive opportunities to mint BONE tokens. The remaining SHIB and LEASH tokens will continue their primary utilities within the ShibaSwap platform. As such, all liquidity on Shibarium will use BONE as the base token.
SHI is a forthcoming stablecoin that will operate both on Ethereum and Shibarium after the project launches. The goal for SHI is to become a global store of value, unit of account, and medium of exchange. Most stablecoins have a peg to $1. To ensure that SHI is accessible to anybody anywhere in the world, it is price-pegged to $0.01. As such, the stablecoin will be able to facilitate payments of all kinds in many different countries.
The addition to the Shiba ecosystem token family will launch following the successful debut of Shibarium. In the Shiabarium blog, Ryoshi states they hope for SHI to “become a worldwide stable currency that ordinary people in all nations may use as a store of value and a form of payment”.
The Future of Shibarium
Shibarium leader Shytoshi Kusama anticipates that the project will launch within the year. A priority milestone for the Shiba Inu development team is the launch of the “Oshiverse” play-to-earn gaming platform. Available for iOS and Android, the game will encourage the use of the Shibarium token family and drive community engagement.
Oshiverse is set to run on the Shibarium blockchain layer-2 protocol. Therefore, Shibarium must launch before the hype surrounding Oshiverse becomes overpowering of the Ethereum scaling solution. Further, there are rumors that some in-game tokenomics involve burning the SHIB token, reducing supply and thus increasing value.
Another potential PR-booster for the Shibarium scaling solution would be the listing of Shiba Inu on the leading retail investor trading platform, Robinhood Markets (NASDAQ: HOOD). Accordingly, the SHIBArmy community has collected more than 500,000 petitions on Change.org for Robinhood to list SHIB for trading. Such an achievement would place the Shiba ecosystem, and thus Shibarium, in front of a new keen-to-invest audience.
Exploring the Shibarium Blockchain Layer-2 Solution Summary
The Shiba Inu project has popularized the small Japanese dog breed, alongside becoming one of the most popular cryptos in the space. With recognition and appreciation in tweets from serial entrepreneur and tech innovator Elon Musk, Shiba Inu (SHIB) has seen record success with its year-on-year price increase. Moreover, the anonymous creator of Shiba Inu, Ryoshi, is implementing a range of novel protocols and applications to add valuable utility to its native asset, SHIB. The Shibarium blockchain layer-2 solution is the next significant stage of development for the Shiba ecosystem.
Shibarium will use the Shiba governance token, BONE, as its base liquidity asset. Also, Ryoshi will release the Shiba stablecoin, SHI, upon the launch of the layer-2 solution. Unlike any other stablecoin, SHI will have a stable price peg of $0.01. This is so that it can be used as a form of digital payment with microtransactions.
Additionally, SHIB tokens are now an accepted form of payment with an online computer shop, Newegg Commerce, and movie theater giant AMC Entertainment. Plus, a strong community force is led by the SHIBArmy for the Robinhood trading platform to list the token. As a result, Shiba is gaining exposure in new places, putting Shibarium in good stead for high demand and adoption upon launch.
For readers who would like to know more about the blockchain on which the Shibarium protocol runs on top of, look no further! Our Ethereum Fundamentals course is perfect for students with zero blockchain experience to grasp the essential foundations of this cutting-edge technology. For the best space to learn all things blockchain, crypto, and Web3, Moralis Academy is the place to be! Also, don’t forget to check us out on Twitter @MoralisAcademy! Let us know your thoughts about Shiba Inu and the Shiba Blockchain!