You probably won’t miss it, Shiba Inu is one of the biggest hypes of the last two years and it is also available on the BLOX crypto app. Meanwhile, the crypto project continues to grow and the next phase is just around the corner: the release of Shibarium.
Shibarium is a second layer on top of the blockchain. The goal is to improve the Shiba Inu ecosystem, including by offering faster transactions at lower costs. However, there are still many doubts about the launch and usefulness of Shibarium.
What is the idea behind Shibarium
When the Shiba Inu token runs on the Ethereum blockchain, they do not (yet) have their own blockchain. The Ethereum blockchain has many advantages, but also disadvantages, including a low number of transactions per second and scalability.
Therefore, several second layers have been built on top of the Ethereum blockchain. Before we go any further, we need to explain exactly what these layers are and how they solve the scaling problem.
What is a second layer?
When we talk about blockchain, we mean the first layer or the base layer or the main chain. A second layer denotes a secondary chain that builds on it. There can be several secondary chains, all of which are called second layers.
Layer 2 are so-called scaling solutions, a technology that can improve a blockchain in many ways, but all of them have the main goal of reducing network congestion in the core layer. Think of a traffic jam on the highway, where cars are diverted to other roads to avoid the crowds.
Shiberium and proof of stake
A second layer that works well on Ethereum is Polygon. This will move Ethereum transactions to the second level of Polygon. Transaction data is sent back to the main Ethereum blockchain in batches.
The second layers almost always use the same consensus mechanism as the main blockchain. Shiberium will therefore use Proof of Stake just like Ethereum. This means that it will be users who will stake part of their tokens to become a validator (node).
A node checks the state of the blockchain to process transactions, instead of miners using hardware that consumes large amounts of electricity. All these nodes are spread all over the world and this ensures that the blockchain is decentralized.
How does Shibarium work?
Shibarium will partner with Ethereum to process transactions in the Shibarium ecosystem. It will take much of the transaction load that the Shiba Inu ecosystem is currently bringing to Ethereum for processing on the Shibarium chain.
In addition, this second phase will phase out existing Shiba Inu tokens to reduce supply and increase the price. This is called token burn, the coins are burned digitally (they are actually sent to wallets that no one can access).
A total of 999.999 trillion Shiba Inu tokens have been produced, of which 410 trillion tokens have already been burned or 41% withdrawn.
When is Shibarium coming out?
At the time of writing, there is no official release date for Shibarium. According to the official blog post, the developers have been working on the project since April 2022, but there are no updates on its development.
What is known is that the project will enter the testnet phase through a public beta that will take place shortly after launch.
This means that there is a lot of work going on behind the scenes, but nothing official yet. The testnet allows developers to build and test the tools needed for end-user interactions, such as B. Token transfer bridges, wallets, block explorers, and more.
Perhaps Shibarium will be one of the great stories of 2023.
Source: Btc Direct
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Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
