Best Way to Explain Shibarium Layer 2 Network? How does it work?
Shibarium embarks on becoming a powerful Layer 2 blockchain and a transitional evolution to the Shiba Ecosystem. Shibarium’s layer 2 is a collective blockchain that scales and invites solutions, innovation, and security to the Decentralized Finance Space.
This blockchain (L2) runs on top of the Ethereum blockchain, which the SHIB ecosystem tokens (SHIB, LEASH & BONE) utilize. A Layer 2 blockchain provides the benefits of scalability, faster transaction times, lower fees, and an expanded development framework.
With the evolution of Web 3, blockchain technology is starting to emerge into the commonplace. Some of the biggest obstacles to mainstream adoption are the cost and speed of transactions.
Shibarium’s Layer 2 blockchain protocols can serve different industry areas such as metaverse, web3 innovation, and gaming. This is primarily due to the commonality of scalability and performance limitations of current existing blockchain networks.
This layer aims, as a protocol, to work on top of existing blockchain networks, allowing for faster, cheaper, and more private transactions to be processed off-chain, while still relying on the security of the underlying blockchain.
This can help to reduce the load on the blockchain network world wild and improve the user experience for metaverse and gaming applications. Combined, web3 and Shibarium’s layer 2 blockchain technology can enable a new decentralized metaverse and gaming ecosystem, where players can interact and transact in a trustless and decentralized way and where players can own, buy and sell the digital assets they acquire.
Shibarium can revolutionize the Shiba Ecosystem and the crypto space
n the summer of 2021, it was common for the cost of gas for adopting cryptocurrencies or NFTs, in the ERC network, to be extremely high. Often adding an extra $50-$100 fee on top of a fractional $15 purchase, making it impractical and unrealistic for everyday transactions.
So how do we remove the barrier to entry for the small transactions that occur in day-to-day living? In L2 blockchains like Shibarium, transactions occur “off-chain”, meaning transactions occur outside of the Layer 1 (Ethereum) blockchain, and are communicated back. Allowing the L2 blockchain to do the majority of the processing work alleviates bandwidth which results in lower costs (gas fees) and processing time for the end users.
Beyond the cost and speed benefits, The development framework for Shibarium provides robust functionality to allow the community to build their vision into the blockchain. Decentralized Applications (dApps), programs that exist and run on a blockchain, are a critical component to the expansion of Web 3. Gaming, Social Media, Education, and Supply Chains are just a few of the nearly endless uses for dApps.
Non-Fungible Tokens (NFTs) – just like its layer 1, Ethereum, Shibarium allows for the creation of chain-specific NFTs. Event tickets, items/assets used in games, art and music, and digital real estate are just a few of the possible applications for NFTs on Shibarium. Please see the developer documentation for more information.
BONE
As previously announced, $BONE is the native token selected to pay for gas transactions and reward Validators and Delegators within the Shibarium protocol. Since its birth in July 2021, its main function has been linked to governance, but now also the much anticipated Shibarium launch.
With a total supply of 250 million, of which 20 million have been reserved to reward Validators and Delegators in the coming years and voted in by the Shiba community through our DAO process.
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