In an intriguing turn of events, the reputation of SHIB, once recognized as a mere memecoin, is undergoing a significant evolution as it morphs into a formidable blockchain contender. All set to launch Shibarium, a layer 2 network that will implement bone, treat, shib, and leash tokens in applications built on the blockchain, SHIB promises potential jumps in token prices as demand spikes.
The ongoing transformation is made apparent by a bridge actively being tested publicly that links Shibarium, which is slated to begin operations next month, with Ethereum. Initial provisions allow for users to transfer testnet ether tokens to Shibarium.
Shytoshi Kusama, the chief developer, mentions that the execution of each transfer should not exceed 30 minutes. However, as of Friday, the bridge does not support real assets.
But what is this layer 2 to which Shibarium is referred? It’s an ensemble of off-chain systems, independent blockchains built atop layer 1 protocols. The aim here is to alleviate bottlenecks associated with scaling and data. By consolidating multiple off-chain transactions into a single layer 1 transaction, the data load reduces, decreasing the fees in the process.
Launching simultaneously with Shibarium will be DoggyDAO, a decentralized autonomous organization (DAO) managed by token holders. DoggyDAO’s mandate will be to fund projects developing on the blockchain.
The activity observed on the testnet in recent months has been noteworthy, with an estimated 16 million wallets executing 27 million transactions as of July. This massive volume of activity signals a strong demand for the network.
Describing Shibarium’s appeal, developers say it would primarily cater to metaverse and gaming applications, especially at a time when the NFT sector is expected to surge in the coming years.
However, amid these promising upheavals, critics might argue whether SHIB can truly transition from its memecoin origins to being a serious player in the blockchain field. Another area of concern could be the scalability of Shibarium and Ethereum’s bridge, given how high the demand is likely to be. Underestimating potential security issues or failure to guarantee constant service could be detrimental to the future of SHIB and Shibarium.
And so, as we watch Shibarium’s launch, and along with it the birth of DoggyDAO, the industry watches and waits, curious to see whether they will turn a new page for SHIB and the broader blockchain world.
Source: Coindesk
