Introduction to Shibarium
Let's bet 10 SHIB: anyone who has even a passing interest in the cryptocurrency market has heard of Shiba Inu. It's one of the most popular meme coins out there, even ranking among the top 15 digital assets by market capitalization. As of the time of writing, the token holds the 13th spot.
SHIB’s position in rankings as of 23rd July, 2024. Source
While there are countless fans of the meme coin itself, far fewer are interested in the technology behind it. In this article, we’ll delve into the Shibarium blockchain, designed to support the Shiba Inu cryptocurrency ecosystem.
The technology behind Shibarium
The Shiba Inu cryptocurrency was created relatively recently, in August 2020, by an anonymous developer known as Ryoshi. However, the project didn’t stop at just one token. Just three years later, on 16 August 2023, the Shibarium network was launched on the Shiba Inu mainnet.
Shibarium is a Layer 2 solution developed for the Ethereum blockchain, intended to be the home for the Shiba Inu ecosystem. Shibarium employs a technology called sharding, which breaks Ethereum transactions into smaller parts that are then processed in parallel on side chains. This significantly increases the network's throughput, allowing for more transactions per second.
Thus, the goal of the Shibarium blockchain is to address the scalability issues and high fees associated with Ethereum.
Features of Shibarium
Within the Shibarium ecosystem, this Layer 2 blockchain performs several crucial functions. Let's explore some of the key features of Shibarium:
Smart contracts and decentralised applications (DApps)
The Shibarium network supports smart contracts, which are self-executing digital agreements operating on blockchain technology. These allow developers to create complex and multifaceted Shibarium decentralised applications. This opens up vast opportunities for innovation and growth, thereby expanding the capabilities of the Shiba Inu ecosystem.
More eco-friendly and modern consensus algorithms
Shibarium uses the Proof-of-Stake (PoS) consensus mechanism. Notably, this technology employs staking instead of mining to secure the network. This results in lower transaction fees and reduced energy consumption.
State-of-the-art blockchain infrastructure
Lastly, one of the standout features of Shibarium technology is its remarkable scalability. Thanks to the sharding technology mentioned earlier, this Layer 2 network can handle a large number of transactions per second. Lower transaction fees make the conditions even more appealing, attracting more users and developers. Consequently, Shibarium enhances the user experience and paves the way for broader adoption of the Shiba Inu ecosystem.
Governance and tokenomics in Shibarium
Now, let's take a look behind the scenes of this technology from a different perspective. First question: how is the Shibarium blockchain governed?
In the world of crypto technologies, there are numerous governance models to suit various preferences, but Shibarium governance stands out for its strong democratic ethos. The blockchain is governed by a Decentralised Autonomous Organisation (DAO) consisting of all SHIB token holders. Asset owners have the right to vote on any changes proposed by developers to the ecosystem. This way, they can influence the platform's future direction.
To participate effectively in the project's governance, it's also essential to understand its token economics. Currently, Shibarium tokenomics is structured as follows:
- SHIB. This token is used to pay transaction fees within the Shibarium network. It can also be staked to earn rewards in the form of BONE tokens.
- BONE. This is a new governance token required for voting on protocol changes within Shibarium.
Additionally, there are plans to create new tokens to incentivise developers and users, which will contribute to the growth of the ecosystem.
Shibarium in practice: use cases and real-world applications
Shibarium technology is already finding applications across various fields. Here are a few examples of how this blockchain can be beneficial in different areas:
1. Decentralised Finance (DeFi). Thanks to Shibarium network's high transaction speed and low fees, it serves as an excellent platform for deploying new DApps. This helps to broaden the reach of DeFi and attract more new users. Ultimately, these are small yet crucial steps towards the mass adoption of cryptocurrencies.
2. Blockchain gaming. The smart contract capabilities integrated into the Shibarium blockchain allow game developers to create and deploy more complex, engaging, and unique game mechanics. Below are some examples of such projects including NFT games and Play-to-Earn (P2E) platforms.
Top blockchain games on Shibarium. Source
3. Non-fungible tokens (NFTs). The technology underpinning Shibarium can also enhance existing NFT marketplaces or even facilitate the creation of new ones. Lower fees for purchasing collectible tokens, combined with high transaction speeds, can make NFTs more accessible and, consequently, more popular.
This brief list of use cases is by no means exhaustive. The potential of blockchain is nearly limitless—it's all down to the creativity and objectives of the developers.
Conclusion: future outlook for Shibarium
Shibarium is a very young blockchain that has already achieved a great deal and earned the trust of its users. It is clear that it is still in the early stages of its development, so we can expect improvements to existing features and the emergence of new ones, such as additional DApps and novel use cases.
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This article is not investment advice or a recommendation to purchase any specific product or service. The financial transactions mentioned in the article are not a guide to action. It’s not intended to constitute a comprehensive statement of all possible risks. You should independently conduct an analysis on the basis of which it will be possible to draw conclusions and make decisions about making any operations with cryptocurrency.
