In the previous article, let’s join Weakhand to learn about Shibarium? Is this a new step by Shiba Inu to create reasons for growth for SHIB, BONE and LEASH in the coming season or is it an attempt to escape the label of meme coin project?
A few other articles that people can also refer to because it is related to the main content of:
- What is Layer 2? Complete Guide to Layer 2 Solutions
- What Are Sidechains? Sidechains Solution Overview
- What is Plasma? Plasma Operation Mechanism In Layer 2
What is Shibarium?
Shibarium was first proposed by Ryoshi, the founder of Shiba Inu, with the goal of reducing the transaction costs of the entire Shiba ecosystem to nearly zero. Although Shibarium was initially proposed as a Layer 2 on Ethereum, but up to now, this blockchain has developed towards becoming a Sidechain.
Unlike Layer 2, Sidechain is a separate blockchain from Ethereum and connected to Ethereum through a bridge. Sidechain may have separate technical parameters as well as consensus algorithms designed to process transactions more efficiently, but because of that, Sidechain will not inherit the security from Ethereum because it does not load the certificates. authentication to Layer 1.
The consensus algorithm used by Shibarium is Proof of Stake (PoS) which includes a network with many different validators. To become a validator, each person is required to stake a certain amount of BONE tokens, this is also the main token used as gas fee for the network.
In addition, Shibarium also built a main bridge to connect to Ethereum using Plasma technology to help assets circulate more safely.
Shibarium Highlights
For a transaction to take place on Shibarium, users need to pay two separate fees as follows:
- Base fee: Is the basic fee locked in contracts on Shibarium.
- Priority fees: Is the fee used to pay validators.
Base fee is the minimum fee amount that users have to pay for transactions on Shibarium, it can change for each block depending on the level of network congestion. We can simply understand that if the previous block capacity is almost full, the base fee of the next block will be increased and vice versa.
The purpose of use of the base fee will be divided into 2 parts as follows:
- 70% is used to burn SHIB.
- 30% is used to maintain the network.
All BONE tokens paid for transactions will be locked in a burn contract and when a certain number (about $25K) is reached, users can trigger the burning process. Once this process starts, BONE will be sent to Ethereum then automatically swapped to SHIB and burned completely.
Structure Of Shibarium
The structure of Shibarium includes three layers with separate functions as follows:
- Contract Layer
- Heimdall Layer
- Bor Layer
Contract Layer
This is a collection of many different smart contracts built on the Ethereum network. Basically, the Contract layer is one of the important requirements to enable the Proof of Stake mechanism for Shibarium.
Staking Contracts are responsible for controlling the majority of the Shibarium network including the following functions:
- Allows anyone to stake BONE on Ethereum as a validator.
- Earn staking rewards when participating users validate transactions and create new blocks.
- Apply penalties to validators whose bad actions impact the network.
- Staking Contract also helps the Shibarium network limit checkpoints on Ethereum.
Heimdall Layer
The Heimdall Layer is a core component of the Shibarium network and performs many important functions as it assists in choosing which validators will create blocks. In addition, the Heimdall Layer is also the layer that manages the state synchronization mechanism as well as other issues between Ethereum and Shibarium.
Some outstanding components of Heimdall Layer include:
- Encoders: Encoder or Pulp is a component of the Heimdall layer, responsible for encoding transactions before they are added to the blockchain.
- StdTx: Short for Standard Transaction, is a protocol used to create and execute transactions on the Shibarium network. It simplifies the process of deploying dApps on the Shibarium blockchain and eliminates the need to pay fees for each transaction.
- Validators: Is an important part of the Shibarium architecture explained in detail as they are responsible for much of the work on the Heimdall layer. The Heimdall class can change validators after a block is completed with EndBlocker.
- Checkpoints: As the next important part of Shibarium’s architecture, it represents snapshots of the Bor Layer state. It must be verified by more than 2/3 validators before being submitted to Staking Contracts on the Ethereum blockchain.
- Validator Key Management: Helps ensure that authenticated validators are active and that they have the authority to participate in the transaction validation process.
- Ante Handler: Ante Handler is responsible for checking the validity of the transaction, ensuring that it is verified by the sender’s signature and that the transaction is not a duplicate transaction.
Bor Layer
The Bor Layer is the third layer in the Shibarium Network’s three-layer structure and focuses primarily on block production. Bor Layer maintains synchronization with Heimdall for verifier selection and block generation because all user interactions with Shibarium occur through Bor Layer.
Bor Layer is also EVM compatible, so developers can easily multichain their products to Shibarium.
Three outstanding components that make up Bor Layer include:
- Genesis Contracts: These are three important contracts deployed on the Genesis block of Bor Layer. These contracts define the initial state of the Bor Layer, including the list of validators, the initial supply of BONE tokens, and the contract to receive the state.
- Span management: Is a feature on Shibarium’s Bor Layer that allows users to select a specific group of validators from available validators to validate their transactions. This is done by dividing the blockchain into spans, which are logically defined sets of blocks.
- Bor Fee Model: Is one of the most important aspects of the Shibarium’s architecture and design. It determines how transaction fees work on the network. Bor Layer will collect fees from transactions on the network in the form of BONE tokens and distribute them to block producers.
Personal Projection
This is an important step of the Shiba Inu development team when creating a lot of additional value for the BONE token. Previously, BONE was originally just a governance token for Doggy DAO. Although SHIB does not actually participate in the user’s process of using the network, this is the ultimate goal when most of the transaction fees will be used to buy back SHIB and burn.
The entire Shiba Inu ecosystem will benefit from being moved to Shibarium with high transaction speeds as well as extremely cheap gas costs. We can review the products in the Shiba Inu ecosystem such as:
- Shibaswap: A decentralized exchange forked from Uniswap v2, which at one point reached billions of TVL.
- Shiboshis: An NFT collection of 10000 cute Shiba Inu dogs achieved a total trading volume of 15800 ETH.
- Shib Metaverse: A product aimed at the metaverse by the Shiba Inu team.
- Shiba Eternity: Is a free collectible card game themed around a special breed of Shiba Inu dogs that have developed their own technology and art.
Summary
Above are the detailed information that everyone needs to know to understand what Shibarium is as well as the answer to the question whether developing Shibarium is a step aimed at creating reasons for growth for SHIB, BONE and LEASH next season or is it an attempt to escape the label of a meme coin project?