The crypto community has a love-and-hate relationship with meme coins. The meme coin army has professed undying support to their chosen project. On the opposite side, we have those who believe that meme coins do not bring value to the industry. A lot of meme coins have faded into obscurity, but Shiba Inu is posed to prove that it is here to stay.
Shiba Inu is a crypto project built on top of the Ethereum (ETH) blockchain. It has grown in popularity due to many early adopters suddenly catching big windfalls from its sudden rise in value. It is now in the top 20 crypto projects with more than $8 billion in market capitalization.
Limitations on the ETH network like high gas fees and scalability have called for a layer 2 solution to be built. The designated project to address the issues is called Shibarium. It has been designed to take away a big chunk of SHIB’s transactions from the Ethereum Network. It promises to give the token the benefit of lower gas fees, faster transactions, and scalability while still leveraging ETH’s security.
What is Layer 2?
Layer 2 is a term used to describe a secondary framework built on top of a blockchain’s primary layer to solve scalability and speed limitations. The primary layer is responsible for the security and integrity of the blockchain network. The primary layer for Shiba Inu is Ethereum. Primary layers have limitations in terms of its throughput, or transactions per second. This is where Layer 2 solutions come in.
They enable faster and cheaper transactions, reduce congestion on the primary layer, and allow more transactions to be processed off the main blockchain. It simply makes things faster and more efficient while reducing transaction or gas fees.
Benefits of Shibarium to Shiba Inu
Let us explore other benefits of Shibarium to the Shiba Inu aside from faster and cheaper transactions.
- Token Utility – Shiba Inu has a massive supply and this is seen as an issue for becoming a utility token or as a store of value. Shibarium will offer a burning mechanism that aims to lower the circulating supply. A lower supply in theory can increase the value of a token.
- DApp Accelerator – Shibarium is expected to have a significant role in the development of decentralized applications (DApps). Shiba Inu aims to be a top solution for building them.
- Metaverse development – Web3 and Shibarium’s layer 2 technology can be used in decentralized Metaverse and gaming ecosystems. Players can transact, interact, buy, and sell digital assets.
- NFT – Shibarium allows the creation of Non-Fungible Tokens (NFTs). Tickets and game assets are just some of the things than can be tokenized within the network.
A Shiba Inu Likes Bones
Dogs like bones. It is no surprise that transactions or gas fees on Shibarium will be paid using $BONE tokens. It is also Shiba Inu’s governance and utility token. As a governance token it allows holders to cast votes regarding project developments. It has a limited supply of 230,000,000.
Will Shiba Inu Developed an Impressive Bite?
Ryoshi, Shiba Inu’s creator, envisioned it to be the “Dogecoin Killer”. Both dog-based tokens are on the top 20 crypto projects. This shows that they have a community that supports them, despite the perceived lack of utility. But Shiba Inu is about to raise the bar. It might even surpass its rival, top dog dogecoin.
Shibarium does not have a launch date at the time of writing, but it looks promising. Upgrades are usually used by investors as just a means to pump prices, but the SHIB community wants to go beyond that. It is said that the upgrade will provide the community with a tool to build and grow the project. If this new layer 2 solution proves to be successful, Shiba Inu will transform from being a meme coin to a crypto token with a mean bite.
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Feature image for Pixabay
