Shiba Inu Takes Step to Become DeFi Contender With Digital IDs
Digital identity verification will be a part of all Shiba Inu developments in the future, including on the upcoming Shibarium layer 2 blockchain.
Aug 3, 2023 at 9:50 a.m. UTC
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- Shiba Inu developers will tie digital-identity services to all platform applications in the hopes of strengthening the project's image among users and governments.
- Such steps could fuel demand for SHIB tokens as the project is viewed more legitimately by serious investors.
The Shiba Inu ecosystem will tie all the applications built on its platform to a blockchain-based digital identity to strengthen trust among shib users and governments, a representative for the blockchain told CoinDesk on Thursday.
The move is the latest attempt by Shiba Inu to break away from its meme-coin status and become a serious decentralized-finance, or DeFi, contender in a crowded blockchain market.
Dubbed self-sovereign identity, or SSI, the IDs are the digital alter ego of identity documents, like passports and driver’s licenses. In the digital world, SSI is said to give users more control over their personal data and its distribution online.
Shiba Inu developers say they have been working with community projects — such as those using SHIB or planning to build on the upcoming Shibarium blockchain — to ensure SSI deployment is a priority.
The developers say the rising interest in digital identities and data protection in Canada and the European Union could help position Shiba Inu as a tamer project compared with other blockchains.
"We are laying the groundwork for a new global standard in decentralized digital trust and international identity verification,” pseudonymous Shiba Inu lead developer Shytoshi Kusama said in a message to CoinDesk. “In this way, Shibarium is the herald of a new digital age where faith in systems is restored and enhanced.”
SHIB, which was initially a meme coin, is turning into a serious blockchain contender with the launch of Shibarium. The layer 2 network will use BONE, TREAT, SHIB and LEASH tokens for applications built on the blockchain.
"Layer 2" refers to a set of off-chain systems — separate blockchains — built on top of layer 1 networks. They bundle multiple off-chain transactions into a single layer 1 transaction, which helps reduce the data load on layer 1 networks and fees for users.
A test blockchain for Shibarium has processed 27 million transactions from an estimated 16 million wallets as of July, indicating brisk demand for the network. The network is expected to go live later this month.
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Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.
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