On August 16, Shiba Inu launched the Shibarium mainnet, an Ethereum layer-2 scaling solution, following an extensive testing phase that got millions of users and resulted in 21 million (!) wallets being created.
Shibarium's foundation rests upon a new consensus mechanism referred to as proof-of-participation (PoP). This mechanism works by selecting validators based on the quantity of the associated cryptocurrency they hold, therefore sidestepping the computer power used with proof-of-work models. The newly developed L2 blockchain solution is specifically created to interact with the primary Ethereum layer-1 blockchain, presenting a more scalable and economical platform for transactions.
To qualify as validator on the new Shibarium network, users need to lock up 10,000 BONE tokens. Within the Shibarium ecosystem, a total of 21 million BONE tokens will be set aside as rewards for both validators and delegators. These tokens will also serve the purpose of covering the approved gas fees.
Layer 2 networks are constructed on top of a layer 1 blockchain, in this case Ethereum, with the intention of delivering faster and cheaper transactions to users. In this context, Shibarium becomes a new addition to this blockchain environment, where around 50 other networks are trying to attract users through affordable fees, mainly within ecosystems centered around financial services and gaming. For example Bitcoin got a layer 2 network called Lightning network, that makes a huge decrease in fees and instant transactions.