Shiba Inu, The infamous ‘Memecoin’ Received a significant update, unveiling its Shiberium Layer 2 solution to improve scalability and accessibility for SHIB users. Despite this, Price failed to receive positive news.
Shiba Inu (SHIB) is a popular meme coin that skyrocketed during the 2020-2021 bull market. However, since the market crash, SHIB has been subject to a lot of fear, uncertainty and doubt (FUD). FUD can come from a variety of sources, including competitors, critics and media outlets, and this can lead to price stagnation.
Besides FUD, several other factors can contribute to price stability, including lack of adoption, utility, and investor confidence. While SHIB has gained popularity and a large community following, it is still considered a relatively new and speculative cryptocurrency, making it more vulnerable to price stability and volatility. But could this change after the latest discussion about SHIB’s Layer 2 (L2) implementation?
A layer 2 scaling solution is a term used in blockchain technology to describe a second layer protocol that sits on top of an existing blockchain network and aims to improve its scalability and transaction throughput. L2 solutions are designed to reduce the congestion and high fees associated with using blockchain networks such as Ethereum. Some examples of L2 solutions include sidechains, state channels, and rollups.
Understanding the Shiba Inu Ecosystem
Shiba Inu (SHIB) is a cryptocurrency created in August 2020 on the Ethereum blockchain as an ERC-20 token. Created as a decentralized community-driven project to create a fun and friendly cryptocurrency rival to Dogecoin (DOGE). The Shiba Inu has gained popularity and a strong community of supporters, especially those interested in meme-inspired cryptic memes.
Shiberium is a layer-2 blockchain solution for the Shiba Inu ecosystem, which aims to provide faster and cheaper transactions for SHIB holders. The launch of Shiberium’s testnet was announced for late 2021, but it faced some technical issues and delays, creating uncertainty among the SHIB community. Since then, Shiberium’s developers have been working to resolve these issues and improve the platform and provide the community with regular updates about Shiberium’s progress.
The latest update includes updated documentation and a new Chain ID for the ‘Puppy Net’ testnet.
latest progress
Shiberium’s testnet is up and running again, according to the head of the Shiba project, Shiotoshi Kusama. The core developers shared the finished document with their community members on their communication forum.
The document provides insight into the various features to which the Shiberium Proof of Stake mechanism and the Ethereum Shiberium Bridge pertain.
While Shiberium’s Proof of Stake (PoS) chain uses side chains to process transactions, Bridge enables a bidirectional transaction environment between Shiberium and Ethereum. Cross-chain bridges are essential for interoperability between different blockchain networks, and it is necessary to ensure that the bridge is secure and reliable in order to prevent any fraudulent or malicious activities.
Plasma is a Layer 2 scaling solution for Ethereum that allows for faster and lower cost transactions by batching multiple transactions into a single transaction on the main Ethereum blockchain. PoS, on the other hand, is a consensus algorithm used in blockchain networks that allows for more efficient and secure transaction verification than traditional Proof of Work (PoW) consensus.
Increase in scalability and other features
Using Plasma and PoS, Shiberium’s cross-chain bridge can provide fast and secure transactions between Shiberium and Ethereum without relying on a central authority. This trustless transaction environment ensures that users can transfer their assets between the two networks without the risk of intermediaries or third parties.
In addition, Shiberium also introduced a new wallet feature for SHIB holders in collaboration with the Unification Foundation.
The new wallet for the Shiberium POS series offers users a wide range of features. One of the main advantages of the wallet is its seamless asset transfer and storage capabilities, allowing users to send and receive SHIB tokens at a low cost – reportedly 10,000 times less than transaction costs on Ethereum.
Additionally, the Wallet offers a user-friendly interface and a range of security features to protect the user’s funds. Other wallet features include the ability to stake SHIB tokens and earn rewards. It also includes access to a decentralized exchange (DEX) for trading SHIB and other cryptocurrencies. The wallet also supports other Ethereum-based tokens, making it a versatile tool for managing a variety of digital assets.
Overall, the developers aim to gain some significant advantages with the advent of Shiberium. Main characteristics include Security, transparency, efficiency, cost-effectiveness and decentralization.
Shiba Inu Burning Mechanism
The Shiba Inu protocol uses a transaction fee system with a burn mechanism. Users pay a fee divided into two parts whenever they transact. The base fee, which makes up 70% of the total, is then burned and removed from circulation. This helps to reduce the total supply of SHIB tokens and increase their scarcity over time.
The remaining 30% of the fee is paid to the validator of the transaction. This incentivizes validators to process transactions quickly and efficiently, as they receive a portion of the cost. Speaking to BeInCrypto, Satoshi KusamaA lead developer behind Shiberium said:
“Once a certain amount of BONE ($25,000) has been accumulated in the burn contract, users can initiate the burn process from Shiberium. Once this process is initiated, the accumulated BONE is sent to Ethereum’s L1 where an automatic swap for SHIB occurs, and this amount is burned calling its contract function. This is equivalent to a withdrawal transaction, but instead of receiving tokens, they are burned and taken out of the total supply. is done.”
community responses
SHIB holders have welcomed the latest development with open arms taking to social media platforms to share their opinions.
Major investors also join the SHIB buying spree:
Despite these bullish developments, SHIB price remains consolidated around the $0.000010 mark. More than 70% of SHIB holders are currently in loss or only profit-making.
It follows a similar trend in which the asset’s price remains stable regardless of improvements in the underlying technology.
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