The creators of the Shiba Inu (SHIB) token have announced the imminent launch of their Shibarium Layer-2 solution.
Shibarium will run on top of the Ethereum blockchain, which is the basis for the Shiba Inu token. Its capacity for decentralized apps and non-fungible tokens have made it one of the most utilized blockchain for smart contracts. However, this popularity has burdened the system, raising costs while lowering transaction times.
Layer-2 Results in Lower Costs
Shibarium will operate as a Layer-2 solution on top of Ethereum, which will facilitate faster transactions while lowering fees. Layer-2 solutions enable “off-chain” transactions, in which they occur off of the first layer blockchain and are communicated back. Allowing the Layer-2 solution to do the majority of the work alleviates bandwidth, resulting in lower costs and processing time.
This reduced load on the blockchain network can also improve user experience for metaverse and gaming applications. Shibarium will also serve as a transitional evolution to the Shiba ecosystem, centering around metaverse, Web3 innovation, and gaming.
Bone Token Bonus
Although it has mainly been used for governance, the BONE token will play a greater role within the Shibarium. In addition to paying for gas transactions, users can also reward BONE to Validators and Delegators within the Shibarium protocol.
Similar to other blockchains, validators stake a certain amount of crypto to help facilitate transactions and maintain the blockchain. Meanwhile, delegators participate in a consensus mechanism called “delegated proof of stake” (DPoS) by delegating their voting rights to a validator. Some 20 million of a total supply of 250 million have been reserved to reward Validators and Delegators.
Shiba Inu Price Bounces on News
Shiba Inu’s price rose with the confirmation of the Shibarium news, after rising some 20% in the past week in anticipation. The token has been on a relatively upwards trend recently in anticipation of the Shibarium news.
Meanwhile, a report recently revealed that Shiba Inu made up a significant portion of a major cryptocurrency exchange’s reserves. India’s largest cryptocurrency exchange WazirX recently published its proof of reserves. At over six trillion coins worth $54 million, Shiba Inu makes up over 20% of its reserves.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.