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Shiba Inu Is Evolving Into a DeFi Ecosystem With Digital Identity Features

11 Aug, 2023
shib-defi

Shiba Inu (SHIB) continues its journey from a jokey meme coin to a meaningful crypto platform by expanding its DeFi capabilities, including a form of digital ID for projects built on its upcoming Shibarium layer-2 blockchain.

Digital ID is a hot topic in the crypto industry at present due to the Worldcoin project's plan to validate digital IDs for online services using an eye-scanning biometric technology linked to its native token. But the question of a verifiable means of ID that is compatible with the crypto community's ideals of privacy and decentralisation has been an ongoing concern in the blockchain space for years.

Digital ID in the blockchain space is often referred to as self-sovereign identity or SSI. SSI services attempt to give a user a way to verify their identity while maintaining control over their personal data. 

Why a digital ID?

Ultimately, the function of a digital ID is to build trust and accountability in the ecosystem and to combat fraud. While mainstream finance requires KYC processes involving documents such as passports, tax returns, proof of address, etc., crypto projects are attempting to leverage cryptographic processes to make users and transactions verifiable while preserving as much privacy as possible. Shiba Inu developers have confirmed that their intention behind implementing such digital identity services is to be seen as more legitimate by financial institutions, investors, and governments, as well as regular users. 

The successful rollout of SSI services for digital identification could drive up demand for SHIB tokens among investors and expand the user base for the platform as it strives to become a significant player in the highly competitive decentralised finance (DeFi) space.

The Shiba Inu developers have revealed that they are cooperating with community projects to prioritise SSI deployment. This could affect apps built on the Shibarium blockchain as well as those that use the SHIB token, giving them an additional trust factor compared to rival blockchains. The development team cites increased interest in digital ID tech and data protection in the EU and Canada as a motivator to build Shiba Inu as the leader of the back when it comes to SSI. A strong digital ID product could frame Shibarium as the platform of choice for developers who wish to comply with regulations in these important markets.

"We are laying the groundwork for a new global standard in decentralised digital trust and international identity verification," said the Shiba Inu lead developer, who goes by the handle Shytoshi Kusama. "In this way, Shibarium is the herald of a new digital age where faith in systems is restored and enhanced."

Enter Shibarium

Shibarium is the name of the layer-2 network of new blockchains built on top of the original Shiba Inu blockchain. These off-chain systems will work to reduce the load on the layer-1 chain, making the whole platform faster and more scalable. Shibarium will introduce four new appropriately doggy-themed tokens—BONE, TREAT, SHIB, and LEASH—to power applications built on the blockchain.

A test network for Shibarium has already been active for a few months and has processed 27 million transactions from around 16 million wallets as of July, a good indicator of strong interest from users. The complete version of Shibarium is slated to go live in August.

Trade SHIB and other top cryptos on StormGain

The development of Shibarium just goes to show that the jokey pup can learn new tricks and even become the top dog in DeFi. A layer-2 solution with robust SSI implementation could be just what the canine coin needs to become one of the most coveted cryptos in the market. Whether you want to accumulate SHIB, potentially profit from it, or even bet against it, you can find the best conditions for trading on StormGain, which offers the SHIB/USDT and DOGE/USDT pairs as well as the opportunity to trade SHIB/DOGE against each other.

Not only that, but StormGain's unique features, such as its crypto trading education programme, low commissions, built-in wallets, and integrated Bitcoin (BTC) miner, will help you maximise your gains by keeping more from profitable trades.

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