Shiba Inu Inks an Important Partnership to Foster the Development of Shibarium: Details

TL;DR

• Shiba Inu collaborates with Zama to integrate Fully Homomorphic Encryption (FHE) into its Shibarium layer-2 solution, aiming to enhance data privacy and security for transactions and smart contracts.
• Despite the development, SHIB’s price fell by over 6% in the past 24 hours. However, it remains up on a two-week scale due to recent rallies.

Shiba Inu’s Latest Collaboration

Shibarium’s Marketing Strategist, using the X handle LUCIE, revealed that Shiba Inu shook hands with the open-source cryptography company Zama. The goal is to enhance the capability of the meme coin’s ecosystem by mainly focusing on the layer-2 scaling solution.

“A crucial component of this evolution is Fully Homomorphic Encryption (FHE), a groundbreaking technology that allows crypto transactions to occur on the blockchain while keeping sensitive data – such as financial information and NFT identities – completely hidden,” the announcement reads.

This technique is employed in crypto applications to secure user data while enabling essential operations, like transaction verification or running smart contracts, without revealing any private information.

According to LUCIE, the FHE integration could strengthen the technology and governance framework of the Shiba Inu ecosystem, “opening the door to new use cases across various projects,” such as Treat or Bone. 

“Although FHE is still evolving and improving in efficiency, its potential is substantial, and the research community is actively working to overcome the challenges associated with it,” the X user concluded.

Some members of the SHIB community described the partnership as a major bullish factor that could propel a price rally for the meme coin in the near future. Others questioned whether the development will make Shibarium more secure. LUCIE answered positively, saying the protocol will “have more options.” They said this will be launched as an L3 on Shibarium. 

For more updates on the ecosystem, check out our Shibarium news.

SHIB Price Outlook

Despite the announced collaboration, SHIB’s valuation remains deep in the red. In fact, the second-largest meme coin is the worst-performing cryptocurrency in the last 24 hours, witnessing a price decline of over 6%.

SHIB Price, Source: CoinGecko

Still, it remains well in the green on a two-week scale due to the major rally recorded lately. As CryptoPotato reported, SHIB reached a three-month high over the weekend, while its market cap briefly surpassed $12.5 billion. Currently, the capitalization stands at roughly $10.8 billion, making it the 14th-largest cryptocurrency. 

Those willing to check which factors might have played a role in the price retreat, please check our detailed article here.