What is Shibarium and what does it mean for the Shiba Inu?
The benefits of using Shibarium include higher transaction speeds, lower fees, increased token utility, and seamless decentralized application (DApp) development.
Despite the upgrade to a proof-of-stake (PoS) blockchain through the merger, the Ethereum blockchain still struggled with scalability, despite the robust security layer. Shibarium is also a PoS project, which will help Shiba Inu to scale while keeping it hooked on the Ethereum blockchain. Shibarium is expected to stabilize the value of SHIB and transform Shiba Inu into a value-adding project with long-term prospects.
Let’s see below how Shibarium will unlock the potential added to memecoin.
Better transaction speeds
By adding layer 2 to the Shiba Inu ecosystem, Shibarium will increase throughput, allowing the project to handle significant growth. Shibarium is expected to significantly increase transaction speed, although users will have to wait a little longer for accurate throughput information.
Lower fees
High transaction fees have been a problem for anyone conducting a transaction on Ethereum. Sometimes the fee is higher than the transaction amount. For example, one may have to pay a high 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 charges negligible.
Complete ecosystem
As opposed to being a pure memecoin, the Shibarium ecosystem will be extensive, encompassing multiple projects, including the SHIB metaverse, ShibaSwap DEX, and blockchain games. The metaverse and the games are expected to draw in users, while the DEX will provide better liquidity.
Token utility
The abundant supply of SHIB, despite the burning of more than 40% of the tokens, has been a major hindrance to its growth. Shibarium handles this by introducing BONE as the native coin. When Shibarium takes off, validators on the network will be paid in BONE to secure and validate transactions. Also, in the new ecosystem, every transaction will consume SHIB, a mechanism to control the hugely inflated supply of SHIB.
DApp development
DApps are decentralized applications with backend code that run on a decentralized peer-to-peer (P2P) network. However, the memecoin simply did not have the means to function as a native coin of DApps. Shibarium intends to develop a robust ecosystem consisting of a layer-2 solution in conjunction with Ethereum. It will provide the technical ability to create DApps in the ecosystem.
