In the past few months, we have seen Shiba Inu emerge as a popular cryptocurrency. Understanding its ecosystem will provide insights on what is behind this crypto.
Shiba Inu’s Ecosystem
Shiba Inu makes use of canine terms in its ecosystem to keep up with its dog theme. Its ecosystem includes ShibaSwap, Shiboshi , and Shibarium (currently under development). ShibaSwap is Shiba Inu’s own decentralized exchange. Shiboshis are 10,000 Shiba Inu generated non fungible tokens. The NFTs exist on Ethereum’s blockchain and each NFT has a unique trait that makes them collectibles such as laser eyes or a party hat.
You can trade SHIB tokens and other cryptos on both DEX and CEX exchange. Shiba Inu also has two other ERC-20 tokens, “BONE”, and “LEASH.”
BONE is a governance token that has a total supply of about 250,000,000 tokens. LEASH on the other hand is the second token created by Shiba Inu, the first being the SHIB token. LEASH has a circulating supply of about 107,646 tokens, and it can be found on ShibaSwap. Here are important things to know about Shiba Inu’s ecosystem:
1. How Shiba Inu’s ecosystem works
Generally, cryptocurrencies are powered by blockchain technology. This technology is a decentralized database that tracks supply limits, account balance, transactions, and more. Tokens are cryptos that use pre-existing blockchain infrastructure, while those that use their own blockchain are called coins. Shiba Inu is a token.
Shiba Inu is specifically an ERC-20 token. This is a type of smart contract that exists on the Ethereum blockchain. Shiba Inu is also compatible with the vast Ethereum ecosystem of decentralized finance (DeFi) services because it is an Ethereum-based token.
Shiba Inu has advantages that include its availability on decentralized exchanges (DEXs) like UniSwap, compatibility with Ethereum wallets like Coinbase, and its potential of being incorporated into interest-bearing products such as saving and lending products, and NFTs marketplace.
2. How to buy Shiba Inu
You can buy Shiba Inu from several platforms including Kucoin, Atomic Wallet, Crypto.com, and Binance. You can also buy it via Trust wallet on Uniswap. Uniswap allows users to exchange Ethereum for SHIB.
Depending on the crypto exchange, payment service, or wallet provider, buying Shiba Inu attracts some fees. Fees are a necessity because they keep the crypto ecosystem going. For example, the ETH network fee is significantly higher than other networks. High fees hinder mass adoption and are harmful to users.
Unlike other wallets, Trust Wallet with its extensive array of services does not charge any wallet fee, DApp or Swapping fee, and blockchain network fees. In contrast, Binance fees start from 0.1% per trade, with 4.5% debit card fees, and 0.5% for instant buys.
3. Shiba Inu’s blockchain: Shibarium
Shiba Inu’s very own blockchain is Shibarium. Shibarium, still in the works, will be a Layer-2 (L2) blockchain that will be the host. Being an L2 blockchain implies that Shibarium will sit on an Ethereum blockchain that already exists. As shared by Ryoshi, SHIB’s creator, neither LEASH nor SHIB will be the blockchain’s primary token. BONE will be the blockchain’s primary token.
Furthermore, it is known to the public that the primary goal of Shibarium is to lower transaction fees for the users in Shiba Inu’s ecosystem. The SHIB which is based on ETH currently has very high transaction fees. The transaction fees for Shibarium are expected to be minimal if not zero.
Shibarium as of now has no official release date. It is still in the works. A lot of testing will be carried out before Shiba Inu launches this blockchain. However, as shared by the team, the launch of Shibarium would not take more than a year.
Shiba Inu is rapidly becoming one of the hottest cryptocurrencies. It is a meme token with a robust ecosystem. The ecosystem explains the underlying fundamentals of this crypto. It is important to understand it before investing in Shiba Inu.