Understanding the Differences Between Shiba Inu's Layer 2 and Layer 3: Roles of BONE and TREAT Explained by LUCIE

Curious about the latest developments in the Shiba Inu (SHIB) ecosystem?

LUCIE, SHIB's marketing leader, recently unveiled new insights into the differences between Layer 2 and Layer 3 blockchains, focusing on their unique functions and the roles of the BONE and TREAT tokens.

Learn how these layers compare, what makes them vital to SHIB's future, and why both tokens are key players in this evolving landscape.

Shiba Inu's Layer 2 vs. Layer 3: An Overview

On August 27, 2024, LUCIE, the marketing leader of Shiba Inu (SHIB), provided updates on the development of a "privacy-focused Layer 3" within the SHIB project. She also explained the differences between Layer 2 (L2) and Layer 3 (L3) in the Shiba Inu ecosystem.

This new Layer 3 blockchain is being built on Shibarium, Shiba Inu’s Ethereum Layer 2 solution. Back in April, it was reported that the project had successfully raised $12 million to support the development of this Layer 3 blockchain.

While it was previously noted that a new token called "TREAT" would serve as the utility and governance token for this L3 blockchain, more detailed information about this upcoming layer has now been revealed.

LUCIE used the analogy of roads to explain the differences between "Shibarium" (L2) and the new L3 blockchain, highlighting the specific roles of BONE and TREAT within each.

The explanation provided by LUCIE on the "Differences Between Layer 2 and Layer 3" is outlined as follows:

Layer 2: High-Speed Transactions, Layer 3: Private Transactions

Shiba Inu's Layer 2 is likened to a "road that allows fast and smooth travel at a low cost." On the other hand, Shiba Inu's Layer 3 is compared to "a road where you can enjoy a private journey."

On the Layer 2 Shibarium, gas fees are paid in "BONE," whereas on the new Layer 3, payments will be made in "TREAT," akin to paying for access to a special lane.

While Layer 2 does not offer special privacy features, it enables transactions to be completed quickly.

Layer 3, however, prioritizes encrypted security and confidentiality, allowing for more private transactions, although at a slower speed.

Roles of BONE and TREAT in Layer 2 and Layer 3

Even when using the privacy-focused Layer 3 road, "BONE" will still be required as the base fee. Afterward, additional payments using "TREAT" will be necessary to access the extra privacy features of L3. BONE and TREAT work together to ensure everything runs smoothly and securely.

BONE is the critical token for transactions on the Layer 2 blockchain, while TREAT powers the Layer 3 blockchain. TREAT also has additional use cases, such as being used for rewards.

The narrative isn’t about whether BONE or TREAT is more important; rather, both tokens play essential roles in the SHIB ecosystem. BONE supports Shibarium (L2), and TREAT plays a crucial role in the Layer 3 system.

Shiba Inu (SHIB) continues to make progress on various initiatives aimed at launching new services.

Recently, preparations for introducing decentralized governance through a DAO were also reported. Thus, there is significant anticipation for future announcements and updates.

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