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DeFi and Credit Risk

  • Shibarium aspires to attract users into a cost-effective ecosystem primarily centered around financial services and gaming activities.
  • The layer-2 network of Ethereum is set to employ BONE, TREAT, SHIB, and LEASH tokens for its blockchain-based applications, potentially leading to an appreciation in the value of these tokens due to escalating demand.

 

On Wednesday, Shiba Inu developers were scheduled to launch the highly anticipated Shibarium blockchain. This blockchain operates as an Ethereum layer-2 network, utilizing SHIB tokens for transaction fees, according to a statement provided to CoinCryptoUs by a representative.

Layer 2s refer to networks constructed on top of a layer 1 blockchain, such as Ethereum, with the intention of offering swifter and more economical transaction options to users. Shibarium's entrance into the blockchain arena adds to the burgeoning landscape, which already encompasses around 50 other networks vying to attract users through cost-effective transactions, predominantly catering to the realms of financial services and gaming.

Shibarium constitutes a pivotal element within a more extensive strategy aimed at establishing Shiba Inu as a substantial player in the realm of blockchain initiatives. The widely-recognized SHIB tokens, which draw inspiration from the Shiba Inu canine lineage and are reminiscent of Dogecoin, were introduced in August 2020 and swiftly ascended to become one of the most prominent meme coins in terms of market capitalization.

However, developers are currently enhancing the functionality of its tokens through the Shibarium network, aiming to establish a significant role within the realm of decentralized finance, commonly known as DeFi.

The utilization of BONE, TREAT, SHIB, and LEASH tokens within the network for blockchain-based applications has the potential to drive up the values of these tokens as their demand escalates.

Shibarium is reputed for its strong emphasis on metaverse and gaming applications, particularly given the anticipated surge in the NFT sector in the forthcoming years. Additionally, the network serves as a cost-effective settlement option for DeFi applications constructed on its foundation.

An upcoming initiative involves the introduction of "DoggyDAO," which operates as a decentralized autonomous organization (DAO) managed and governed by individuals holding tokens. This DAO will serve as a funding mechanism for endeavors focused on expanding the capabilities of Shibarium.

The evident popularity of SHIB tokens, as demonstrated by the creation of approximately 21 million wallets during a testing phase, suggests that Shibarium might experience a swift surge in network activity upon its official launch.

“Many in the tech world, inside and outside the blockchain ecosystem, are promising ‘everything apps’ and full user interactivity in the world of ideas, goods, services and other opportunities,” said Shiba Inu lead developer “Shytoshi Kusama” (a pseudonym), in a message to CoinCryptoUs.

“However, any such promise absolutely must start at a place of both community and decentralization,” the developer added. “As part of one of the most popular cryptocurrencies on the planet, Shibarium lives at the intersection of those two principles in a way that eludes most other technologies, even many other blockchains.”

Shibarium operates as a proof-of-stake blockchain, leveraging both validators and delegators in its network structure. Validators play a crucial role by operating nodes, handling transaction processing, and generating new blocks. This pivotal responsibility not only upholds the system's functionality but also safeguards the ecosystem's integrity and security.

Meanwhile, delegators provide support to validators by staking tokens within the ecosystem. Both validators and delegators receive rewards for actively participating in this ecosystem, and these rewards come in the form of a governance token known as BONE. The total supply of BONE tokens is capped at 250 million.