First launched in August 2023, Shibarium is a layer-2 blockchain created to improve Shiba Inu’s ecosystem, making it more user-friendly and efficient in handling a growing number of transactions.
If you are here to learn more about Shibarium, you are in the right place! Enjoy the ride as we take you through how this layer-2 platform works, how to use it, and everything else.
Shibarium Explained
Shibarium is a layer-2 network that belongs to the Shiba Inu ecosystem.
Shiba Inu was created in 2020 to run on the Ethereum blockchain. The blockchain’s high transaction fees and slow network may have contributed to the slow growth of Shiba Inu’s ecosystem as new investors were probably discouraged from exploring the memecoin’s potential.
This challenge created a need to build Shiba Inu’s network, and in 2023, a solution was brought into existence. Shiba Inu’s layer-2 solution, called Shibarium, was born.
Shibarium is called a layer-2 network because it is built on Ethereum as its foundation and base network. The aim of developing this network was to make a provision for Shiba Inu’s ecosystem to flourish with cheaper gas fees and a faster network while leveraging the Ethereum network’s security.
Shibarium was first launched on August 16, 2023. This is the network’s official release date. However, the Shibarium launch didn’t go as planned.
Here is why:
Shortly after its launch, Shibarium experienced a temporary downtime. The first Shibarium launch attracted high traffic and really affected the network.
On launch day, Shibarium had a large and overwhelming influx of users. This resulted in some operational challenges that finally led to an unexpected outage or temporary shutdown of the network.
About one week later, on August 25, 2023, Shibarium was relaunched. This time, the launch was successful.
We know this because the relaunch saw Shibarium record over 50,000 new wallets. Secondly, it increased the value of one of Shiba Inu-related tokens, the BONE token.
That is not all. Within 24 hours after the relaunch, the network recorded over 420,000 transactions and 100,000 wallets.
Since its launch, the Shibarium network has been worked on to improve its performance and prevent it from shutting down again due to traffic congestion.
The Shibarium team, led by Shytoshi Kusama, increased the network’s scalability by 1500%. This has enhanced the network’s stability and boosted its ability to handle large volumes of transactions.
How Does Shibarium Work?
As noted earlier, Shibarium works as a layer-2 solution on its base blockchain, Ethereum. It was built to ensure faster transaction speed and significantly reduced transaction fees.
There are two main problems common with using the Ethereum blockchain. First, the Ethereum network is known for its high gas fees which may, sometimes, discourage users.
Second, the network usually experiences slow network speed. This may prove to be frustrating when users want to complete their transactions and are unable to do so quickly.
To offer solutions to these problems, Shibarium was designed to provide a more cost-effective and faster platform for transactions, thereby making it more user-friendly and enhancing user experience.
The Shibarium network uses a Proof-of-Stake (PoS) consensus mechanism. It is also designed to be interoperable with the Ethereum blockchain.
Like the Ethereum blockchain, Shibarium supports the growth of decentralized finance (DeFi) and the development of decentralized applications (dApps). Hence, developers can build and deploy dApps more easily on the network.
The Burn Mechanism
Shibarium’s burn mechanism will permanently remove some SHIB tokens, whose total supply is one quadrillion tokens, from circulation and make them scarce.
Here is how it will work:
70% of the transaction fees of every transaction processed on the Shibarium network will be stored in a locked contract. These locked transaction fees, paid in the form of BONE tokens, will then be collected after a while and sent to the Ethereum mainnet.
On getting to the mainnet, the BONE tokens will be used to buy SHIB tokens. These purchased SHIB tokens will then be sent to a burn address and removed from circulation permanently.
How to Use Shibarium
Shibarium is not the only layer-2 network built on the Ethereum blockchain. Like the others, you can create a decentralized application on Shibarium that could bolster the growth of the Shiba Inu ecosystem.
Depending on the wallet you are using, the process of configuring your wallet to access the Shibarium network may differ slightly. However, the steps are almost similar.
If you are using a MetaMask wallet, follow the simple steps below to add the Shibarium network to your wallet.
- Go to the ChainList website.
- Tap the search bar and type “Shibarium”.
- Click on the arrow under “Shibarium” in the search results.
- At this point, specific details for the Shibarium network will appear, such as the RPC server address, chain ID, and currency symbol. Take note of these details and leave the site.
- Open your MetaMask wallet and go to “Add Network”.
- Enter the details required by the wallet, including the network’s name (in this case, Shibarium) and the others you copied in step four above.
- Click on “Save”.
- Congratulations! You’ve successfully configured your MetaMask wallet to access Shibarium.
If you are using a Trust wallet, follow these steps to add the Shibarium network to your wallet:
- Do steps one to four listed above.
- Open your Trust wallet and navigate to the list of cryptocurrencies available on the wallet.
- Tap the plus (+) sign at the top left corner of the “Manage Crypto” page. This action will take you to the “Import Crypto” page.
- On the “Import Crypto” page, click on “Network” and fill in the required details using the information from ChainList as shown below.
- Congratulations! You have successfully added the Shibarium network to your Trust wallet.
Top dApps to Explore on Shibarium
At the time of writing this article, most of the top dApps to explore on Shibarium are decentralized exchanges. These platforms dominate the total value locked (TVL) metrics on the network.
- WoofSwap (WOOF)
- MARSWAP (MSWAP)
- ChewySwap (CHEWY)
Where Can I Buy Shibarium Coin?
No Shibarium coin has been released yet. So, you cannot buy any Shibarium coin. That being said, there are several Shiba Inu ecosystem tokens you can buy from major cryptocurrency exchanges that support them.
Here is a list of some of these tokens.
- SHIB: SHIB is a dog-themed memecoin, like Dogecoin. It is the native token of the Shiba Inu ecosystem and the most popular one. The Shibarium network has been designed to burn SHIB tokens after every transaction.
- BONE: The BONE token is a governance token within the Shiba Inu ecosystem. This token is also used to pay transaction fees or gas fees when transactions are made on the Shibarium network.
- TREAT: The TREAT token is another Shiba Inu token. It will provide liquidity to the proposed stablecoin, SHI, and replace the BONE token as the network’s reward token.
- LEASH: Launched in 2021, the LEASH token was originally intended as a rebase token. Later, though, the rebase function was turned off.
- SHI: SHI is the native stablecoin of the Shibarium network. Although it is yet to be launched, its value will be pegged to $1.
Frequently Asked Questions About Shibarium
Is Shibarium the Same as Shiba Inu?
No, Shibarium and Shiba Inu are not the same. Shiba Inu (SHIB) is a cryptocurrency. On the other hand, Shibarium is a layer-2 network built on the Ethereum network to decongest the base network and improve the scalability and efficiency of Shiba Inu’s ecosystem.
How Much Will Shibarium Burn?
The simple answer is that we do not know the exact number of SHIB tokens that Shibarium will burn.
However, it has been predicted that Shibarium might burn around five trillion SHIB tokens every month and permanently remove them from supply. If this is true, it might significantly reduce the token’s total supply and lead to a substantial increase in its price overtime.
What Will Shibarium Do For Shiba Inu?
The Shiba Inu ecosystem will benefit so much from Shibarium due to the different good features of the network.
For instance, Shibarium supports decentralized finance (DeFi). Developers can build and deploy decentralized applications (dApps) on the Shibarium. This can help to increase the liquidity and value of SHIB and other Shiba Inu-related tokens.
Additional benefits that Shiba Inu will derive from Shibarium include improved blockchain scalability and efficiency from cheaper transaction fees and faster transaction speed on the network.
The use of Shibarium will also ensure that its base network, Ethereum, is decongested and eased off some network load.
Will Shibarium Make Shiba Inu Rise?
We do not know whether Shibarium will make Shiba Inu’s value rise. The cryptocurrency market is an unpredictable space. Due to this, anything, expected or not, can happen at any time.
So, will Shibarium pump Shiba Inu’s price? We do not know.
Summary
Shibarium was launched on August 16, 2023, as a layer-2 network built on the Ethereum blockchain. Among other things, the network was created to process transactions at reduced costs and faster speed.
Shibarium uses a Proof-of-Stake (PoS) consensus mechanism and supports the growth of decentralized finance (DeFi).
The burn mechanism ensures that 70% of all gas fees from transactions processed on the network are ‘burned’. This mechanism will reduce the total supply of Shiba Inu tokens in circulation.
You need to follow specific steps to configure your wallet to access the Shibarium network. Although these steps may differ slightly from wallet to wallet, they are mostly similar. In this article, the steps for MetaMask and Trust wallets were explained.
No Shibarium coin has been released yet. However, users can buy Shiba Inu-related tokens, such as SHIB and BONE, on trusted cryptocurrency exchanges that support them.
Faith | November 5, 2024
