• Shibarium is a layer-2 technology of Shiba Inu which provides a bidirectional transaction environment between Shibarium and Ethereum.
• It uses Proof of Stake (PoS) chain to process transactions and requires users to stake their BONE tokens.
• The platform also allows users to create programmable tokens, smart contracts, and has a burn mechanism with base fee and priority fee.
Shibarium: Layer-2 Technology for Shiba Inu
The developers of Shiba Inu recently released the documentation for its layer-2 technology, Shibarium. This document reveals more details about how the technology works, including how the Shibarium Proof-of-Stake and the Ethereum Shibarium Bridge are related.
Proof Of Stake And Transaction Environment
Shibarium’s Proof of Stake (PoS) chain uses side chains to process transactions while the bridge enables a bidirectional transaction environment between Shibarium and Ethereum. Additionally, users must stake their BONE tokens in order to participate in PoS consensus algorithm.
Programmable Tokens & Smart Contracts
The blockchain technology also allows users to create programmable tokens such as fungible tokens or non-fungible tokens (NFTs), as well as smart contracts used in various applications such as initial coin offerings (ICOs). Transaction fees are expected to be less than $0.01.
Shibarium Staking Manager
The documents provide insight into another key feature: the Shibarium Staking Manager which is responsible for managing stakes, distributing rewards and verifying signatures using proof-of security consensus on an Ethereum smart contract. As Lucie points out, only one role can be assigned per Ethereum address as design choice by using NFT ID as source of ownership.
When making a transaction on this platform there is a fee incurred that is divided into two parts: the base fee (70%) and priority fee (30%). The purpose of this burn mechanism is to ensure that no new coins can be created from nowhere thus avoiding inflationary effect on prices.