Shiba Inu Partners with Zama to Enhance Shibarium Security

TL;DR

• Shiba Inu has teamed up with Zama to incorporate Fully Homomorphic Encryption (FHE) into its Shibarium layer-2 solution, with the goal of improving data privacy and security for smart contracts and transactions.
• Despite this advancement, SHIB’s price dropped by more than 6% in the last 24 hours. Nevertheless, it has gained on a two-week timeframe due to recent surges.

Shiba Inu’s Recent Partnership

Shibarium’s Marketing Strategist, who goes by the X handle LUCIE, announced that Shiba Inu has partnered with Zama, an open-source cryptography company. This collaboration aims to enhance the capabilities of the meme coin’s ecosystem, primarily focusing on its layer-2 scaling solution.

“A key aspect of this evolution is Fully Homomorphic Encryption (FHE), a revolutionary technology that enables crypto transactions on the blockchain while keeping sensitive data—like financial details and NFT identities—entirely concealed,” the announcement indicates.

This method is utilized in crypto applications to safeguard user data while allowing vital operations, such as transaction verification and executing smart contracts, without exposing private information.

According to LUCIE, FHE integration could bolster the technological and governance structure within the Shiba Inu ecosystem, “paving the way for new applications across diverse projects” including Treat or Bone.

“While FHE is still maturing and enhancements in efficiency are ongoing, its potential is significant, and the research community is diligently addressing its associated challenges,” concluded the X user.

Some SHIB community members perceive this partnership as a substantial bullish influence that could trigger a price increase for the meme coin in the near term. Others have raised doubts about whether this development will enhance Shibarium’s security. LUCIE responded affirmatively, stating that the protocol will “offer more options.” They have indicated this will be introduced as an L3 on Shibarium.

For further updates about the ecosystem, be sure to explore our Shibarium news.

SHIB Price Overview

In spite of the newly announced collaboration, SHIB’s valuation remains significantly negative. Indeed, the second largest meme coin has been the poorest performing cryptocurrency over the past 24 hours, experiencing a decline of over 6% in price.

Nevertheless, it remains quite positive over a two-week horizon due to the significant increases observed recently. As CryptoPotato has reported, SHIB achieved a three-month peak over the weekend, while its market cap briefly exceeded $12.5 billion. Currently, the market capitalization is around $10.8 billion, ranking it as the 14th largest cryptocurrency.

For those interested in exploring the factors that may have contributed to the price drop, please refer to our comprehensive article here.