Shibarium was recently launched as a layer 2 solution designed to increase transaction speeds and reduce costs in the Shiba Inu ecosystem. The developers have also implemented a token burning mechanism that is directly related to activities on the Shibarium network. In August 2023, this initiative was launched on the mainnet. Four months after its launch, a competing project called ShibChain was introduced on the Polygon Chain Development Kit (CDK) platform.
According to reports, ShibChain operates as an Ethereum L2 protocol that will use Shiba Inu (SHIB) to pay for gas. For every transaction carried out on the network, 300 SHIB ($0.003) will be charged. Additionally, transactions will be processed at 2,000 transactions per second (TPS). In comparison, Shibarium uses ShibaSwap (BONE) as payment for gas.
ShibChain will allow Shiba Inu enthusiasts to spend their tokens on a variety of services, including gaming, non-fungible tokens (NFTs), and decentralized finance (DeFi). Before launch, some of the crypto community expected Ethereum to be the protocol of choice, but Polygon became the protocol of choice. The reports also explain that SHIB will become the currency for all applications of the protocol and will benefit the Shiba Inu ecosystem.
Image: Binance Academy
