The untimely death of Balltze, the most loved dog in the social media community, was unexpected news for the world in August 2023. He was fondly called ‘Cheems,’ a name popularized through internet memes. The Shiba Inu dog has been the reason for millions of smiles all over the world through different memes. Another popular canine friend, Kabosu, became the inspiration for Dogecoin, a meme-inspired cryptocurrency. Did you know that the Shiba Inu breed has inspired another crypto asset? Shiba Inu has gained popularity as an alternative to Dogecoin. You would need a Shiba Inu guide to learn more about the competitor of Dogecoin, a cryptocurrency project that started off as a joke. Every cryptocurrency enthusiast wants to know about the utility of Shiba Inu and how it works. Let us learn more about Shiba Inu and its working mechanisms with detailed descriptions.
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What is Shiba Inu (SHIB)?
The Shiba Inu (SHIB) is one of the hunting dog breeds in Japan, which were bred for flushing out small game. Interestingly, the answer to “What is Shiba Inu?” from the viewpoint of a blockchain and crypto beginner would point towards the decentralized meme-inspired cryptocurrency. It has grabbed the attention of the market as it has emerged as a formidable name among innovation leaders in the field of cryptocurrencies. It aims at introducing the control of cryptocurrencies back into the hands of an average person. The Shiba Inu project aims at offering decentralized protocols with better value benefits as compared to centralized counterparts. What were the reasons for creating Shiba Inu?
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Does the World Need Shiba Inu?
The next important highlight in a Shiba Inu tutorial would focus on the reasons for which a project like Shiba Inu was created. Bitcoin, the first-ever cryptocurrency, showed the roads to achieve promising value advantages in different sectors. However, a centralized ecosystem still plays a major role in how we approach everyday activities in our lives. An anonymous person, Ryoshi, launched Shiba Inu in August 2020. It was the first token where the community addresses 100% of the operations, thereby safeguarding the standards of decentralization.
The ‘Woofpaper’ or the whitepaper of Shiba Inu provides insights into Shiba Inu working mechanisms and the rationale behind the project. The whitepaper revealed that cryptocurrencies that are not completely autonomous are most likely to encounter instabilities. On the contrary, Shiba Inu project aims at developing a community, the Shib Army, which would foster true decentralization. It aims to become a coin without any centralized team, direct leadership, or funding.
Interestingly, the founder of Shiba Inu (SHIB) sent 50% of SHIB tokens, the native token of the Shiba Inu community, to Ethereum founder Vitalik Buterin. The remaining 50% of the supply was locked on Uniswap for liquidity. Apparently, Buterin burned around 90% of SHIB tokens in May 2023 and sent the remaining 10% to a COVID-19 relief fund. As the developers did not anticipate the burning or donation of tokens by Buterin, it is important to look at the ways in which the donations are used.
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Journey of Shiba Inu (SHIB) Till Now
The introduction to Shiba Inu (SHIB) would be incomplete without referring to its journey. With a fundamental impression of answers to “How does Shiba Inu work?” you might have doubts regarding the evolution of the project. How did it climb to the top ranks in the highly competitive cryptocurrency landscape?
You must note that Shiba Inu did not have any utility other than serving as a medium of exchange. Dogecoin was created as an independent cryptocurrency based on its own blockchain network. On the other hand, the Shiba Inu token, or SHIB, is an ERC20 standard token on the Ethereum blockchain. Some experts have also hailed Shiba Inu as the Dogecoin for Ethereum.
The growth of the Shiba Inu community led to the development of new Shiba Inu types for catering to the emerging tenets of innovation. As a matter of fact, the popularity of Shiba Inu has led to unwavering support from a massive base of passionate followers, token holders, and fans.
With a powerful and trending name, the ‘Shib Army’ is definitely a force to behold in the domain of blockchain. Passionate SHIB token owners all over social media platforms such as Discord, Reddit, Telegram, and Twitter have formed the most active communities. According to the official website of Shiba Inu, the community has more than 480,000 people with over 70,000 followers on Twitter.
The expansion of the Shiba Inu community has been based on the growing popularity of SHIB token. Furthermore, the token has helped in including two new ERC20 tokens with unique use cases in ShibaSwap, the decentralized exchange of the community. Another crucial highlight for a Shiba Inu guide would be Shiboshis, the NFTs of the Shiba Inu ecosystem. In addition, the Shiba Inu community has also birthed a layer 2 protocol for Ethereum, known as Shibarium.
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Working Mechanisms of Shiba Inu
The working mechanism of Shiba Inu (SHIB) is an important aspect in the introduction to the memecoin. It leverages the foundation of Ethereum network, thereby leveraging its consensus mechanism, i.e., Proof of Stake, after transitioning from Proof of Work. The Proof of Work mechanism implied that mining rewards depend on computational power of nodes.
On the other hand, Proof of Stake mechanism determines mining rewards on the basis of the number of coins you can stake in the network. The answers to ‘How does Shiba Inu work’ would highlight the importance of SHIB tokens, which are ERC-20 tokens on Ethereum network. The fungible tokens could be replicated as every token has the same value as the other.
As of now, the total supply of Shiba Inu has been restricted to 1 quadrillion SHIB, which is still a massive supply. The huge supply ensures that it could facilitate inflationary properties. The circulating supply of Shiba Inu was almost 549 trillion SHIB in October 2022. On top of it, the working mechanisms of Shiba Inu also point to the distribution of SHIB token supply into two halves.
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Visions of the Shiba Inu Community
The explanation of Shiba Inu working mechanism also points at the different visions of the Shiba Inu community. It has its own decentralized exchange, which was released in June 2021. The ShibaSwap decentralized exchange opened new roads to DeFi for SHIB token holders and other cryptocurrency users. Most important of all, ShibaSwap claims that it would be one of the best and safest decentralized exchanges in DeFi.
- ShibaSwap allows users to deposit tokens in the SHIB liquidity pool for earning interest. The DEX utilizes terms such as DIG, TREAT, FETCH, BONEFOLIO, and BURY for describing different activities.
- Digging SHIB tokens implies that you stake your tokens in the SHIB liquidity pool. In return, you would receive BONE tokens, which are similar to liquidity provider tokens.
- On the other hand, burying SHIB tokens implies that users could stake tokens in Shiba Inu blockchain for SHIB tokens in return.
- Fetching SHIB tokens is also an interesting process that allows users to swap their SHIB tokens with other tokens immediately.
- The next important detail about ShibaSwap in a Shiba Inu tutorial would point at a ‘treat.’ It is another type of token that has been created around the ERC20 standard.
- The BONEFOLIO is a detailed portfolio that allows users to access their assets.
ShibaSwap is the primary hub for DeFi use cases in the Shiba Inu ecosystem. First of all, the interesting terminology for staking (burying), liquidity providers (digging), and voting for governance proposals. The answers to ‘What is Shiba Inu?’ should also feature information about LEASH and BONE. They are the two new ERC20 tokens that have emerged within the Shiba Inu community.
LEASH was created to track the price of the DOGE token of Dogecoin. Interestingly, the function was switched off. Now, the price of LEASH is completely independent. Users could stake LEASH tokens or use them in liquidity pools of ShibaSwap, and the total supply of LEASH tokens is 107,646.
BONE is also another addition among the tokens generated in the Shiba Inu community. It is a major highlight in the answers for ‘How does Shiba Inu work’ as it is the governance token for Shiba Inu ecosystem. The governance token can help in achieving the true aim of decentralization in the Shiba Inu project by allowing every member the right to vote on governance proposals. The BONE token could also serve as a useful tool for liquidity pools of ShibaSwap.
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What are Shiba Inu NFTs and Shibarium?
The fundamentals of Shiba Inu ecosystem must also shed light on the Shiba Inu NFTs and layer 2 solutions, Shibarium. You can find these unique Shiba Inu types of Web3 solutions as the perfect examples of the effectiveness of nurturing a decentralized coin. The NFTs, or Shiboshis, feature a collection of pixelated dogs.
The developers of Shiba Inu (SHIB) launched 10,000 Shiba Inu NFTs in October 2021. All of them sold out in 35 minutes, and every Shiboshi comes with unique traits. The important traits of the Shiba Inu NFTs include headwear, accessories, fur, and clothes. The variations in these traits help in defining the rarity of the NFTs and their features for a blockchain-based game.
Shiba Inu has also given birth to a layer 2 solution, similar to Optimism and Arbitrum, with Shibarium. The Shib Army determined that it should build its own layer 2 solution for tokens in its ecosystem. The explanation for Shibarium in a Shiba Inu guide would also highlight the importance of BONE tokens for paying gas fees. In addition, it would also help in improving the scalability and speed of Ethereum.
The first version of Shibarium started operations in early 2022. Shibarium would focus primarily on interactions with ShibaSwap alongside peer-to-peer transactions. It would help the Shib Army in exploring easier avenues for participating in DeFi with reduced gas fees. In the long run, Shibarium could emerge as a promising tool for increasing the adoption of Shiba Inu (SHIB).
Is There Anything Unique about the Shiba Inu (SHIB) Project?
The review of responses for ‘What is Shiba Inu?’ offers a comprehensive impression of how it is a major tool in the emerging web3 ecosystem. Most important of all, Shiba Inu has also earned the ‘Dogecoin Killer’ tag. Does it have the ability to overthrow one of the popular cryptocurrencies?
The whitepaper or ‘Woofpaper’ of Shiba Inu focuses on collective decentralization, which offers better value advantages than centralized teams. The most unique highlight of Shiba Inu (SHIB) is the fact that it believes in the power of decentralized community building. It started off from scratch without any funding and has proved that community-based efforts could encourage true decentralization.
You should also look for interesting highlights in a Shiba Inu tutorial, such as the community efforts launched by it. The platform has created a community initiative that uses Amazon Smile feature for collecting and distributing a share of Amazon purchases to Shiba Inu Rescue Association as donations. Furthermore, Shiba Inu has also nurtured multiple dog-inspired artists from different corners of the world in their artist incubator.
The project could help in promotion of the Shiba movement through Shiboshis alongside paving the path for Shiba Inu in the NFT landscape. In addition, the Shiba Inu working mechanism also reflects the value advantage of security features of Ethereum blockchain. The unique highlights of Shiba Inu prove that it is definitely a unique project in the world of Web3.
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The discussion about Shiba Inu fundamentals reveals some of the most insightful details about its origins and its working mechanisms. Shiba Inu (SHIB) shows how you can develop Web3 solutions with complete decentralization. The community or Shiba Army is responsible for the growth of Shiba Inu. On top of it, the Shiba Inu tutorial also sheds light on the importance of different tokens, such as SHIB, LEASH, and BONE, in the Shiba Inu ecosystem.
In addition, you can also notice the unique details in the Shiba Inu ecosystem, such as ShibaSwap and Shibarium. Furthermore, Shiba Inu (SHIB) has also proved its identity as a unique Web3 project by contributing to social welfare initiatives. Learn more about the Shiba Inu project and how it could change the conventional approaches for the growth of cryptocurrency projects.
*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!