n late February 2024, the development team behind Shiba Inu announced ambitious privacy-focused upgrades for its Ethereum-based Shibarium network. Working with cryptography startup Zama, an additional anonymization layer will be built on Shibarium utilizing groundbreaking fully homomorphic encryption (FHE).
Shibarium to Add Advanced Privacy Capabilities
This sophisticated technique allows computing on encrypted data without first decrypting it, meaning transactions and user information can be processed while remaining private. The new network will be powered by TREAT, a utility token issued on Shibarium alongside SHIB, BONE and LEASH.
According to Shytoshi Kusama, founder of Shiba Inu, the layer "lets developers add a focused network on top of Shibarium." It represents a major step forward for individual protections as the ecosystem expands its services.
Enhancing Value for SHIB Holders
Since launching in mid-2022, Shibarium has aimed to provide a lower-cost alternative for transactions, games and decentralized applications (dApps) built on Ethereum. Its multi-token model distributes different utilities, with TREAT taking on the role of fueling the privacy network.
This is expected to strengthen SHIB's position by creating added use cases. The token already serves as the main currency for transactions and in-game purchases. Improved privacy safeguards could spur further involvement from those concerned about surveillance or data harvesting.
Early industry feedback praised Shiba Inu's foresight in proactively implementing advanced privacy standards to retain user confidence. The integration of cutting-edge FHE solutions shows a commitment to user privacy that newer blockchain protocols have acknowledged as important for long-term growth.
A Benchmark for Privacy on Layer 2 Networks
Many industry observers now view Shiba Inu's initiative as an encouraging step that could motivate broader privacy implementations. While cryptocurrency users have long debated the merits of transparency vs. anonymity, bolstering choice and individual rights has gained favor.
By bringing such robust protections to an active layer 2 network from the start, Shiba Inu aims to set a benchmark for privacy-focused blockchain design. The new network promises to strengthen Shibarium's value proposition and establish the project at the forefront of this important development direction.
Success in deploying its privacy upgrades as planned would cement Shiba Inu's leadership status while furthering on-chain privacy as an industry standard. Given recent hype around related technologies, the project may influence how similar solutions are applied across other layer 2 networks moving forward.
