Shiba Inu Developers Release the First Look at Layer 2 Blockchain Shibarium
Shibarium, the upcoming layer 2, will join the growing ranks of Ethereum-based cryptos such as Arbitum or Optimism. They are looking to solve problems like speed, cost, and scale.
In the coming weeks, a beta-testnet, or a cryptocurrency that replicates real-world functioning, will launch.
Layer 2 refers a group of off-chain solutions, or separate blockchains, that are built on top layers 1 and 2. These help reduce bottlenecks when scaling and data is involved. This allows for multiple off-chain transactions to be combined into one transaction at layer 1, which reduces data load and fees.
In introductory post on Sunday, Shiba Inu developers said Shibarium would have a focus on metaverse and gaming applications especially as the NFT sector is expected to heat up in the coming years, apart from Shibarium’s use as a cheap settlement for decentralized applications (dApps) built on the network.
The launch could boost shiba Inu’s fundamentals. Shiba Inu formed in the previous bull markets as a Shiba Inu-themed mecoin. It has since tried position itself as a serious project, with its own blockchain network.
The move could further bolster the fundamentals of Shiba Inu’s three ecosystem tokens: shiba inu (SHIB), leash (LEASH) and bone (BONE), which together command over $5 billion in market capitalization.
Every transaction on Shibarium is going to burn a certain amount SHIB tokens. The exact amount has yet to be determined. Burns are permanent removal of tokens from total supply.
How Validators Work
Shibarium’s validators will lock up BONE to run the Heimdall validator, software that provides an overview of transactions, and Bor block producer nodes, a program that allows the integration of Ethereum into other networks. Validators are entities that approve and maintain transactions on any blockchain network.
There are only 100 validators. Validators must also stake at least 10,000 BONE. All rewards will be paid to them in BONE. “The onboarding of these Validators will be done taking into account the experience, trust, knowledge and ensuring that these validators are committed to the health and integrity of Shibarium,” developers said.
“The development team is currently evaluating potential gas fee rates for the blockchain network. The network’s gas fees are expected to be lower than the current fees on the Ethereum mainnet,” they added.
Developers said that a TREAT token, which will be introduced in the near future, will be used to encourage liquidity pools on ShibaSwap. This decentralized exchange uses SHIB and provides users with lower network fees and better reward strategies.
CoinGecko data indicates that SHIB, LEASH, and BONE have been nominally modified in the last 24 hours.