Shibáswap

ShibaSwap is a native decentralized exchange (DEX) of the Shiba Inu coin. The Shiba Inu team has been working on this project.

ShibaSwap was the first step to building the infrastructure that supports the overall Shiba Inu ecosystem. The Shiba Inu tokens are the seeds from which the ecosystem sprouted, and ShibaSwap is how they have dug in their roots.

The goal of ShibaSwap is to provide a safe place for the community to trade tokens on a decentralized exchange, while implementing special incentives and rewards to those who contribute to the ecosystem, such as liquidity providers.

Our unique tokenomics, user-friendly design, strong technical foundation, and ever-growing community all contribute to the success of the platform, which ultimately forms the central pillar of the entire ecosystem.

Welcome Shib Army! This wiki is designed as a resource for the community to learn more about the projects under the Shiba Inu ecosystem, complete with how-to guides, best practices, and other crypto-related educational materials.

Blockchain​

A blockchain is a type of shared database that publicly records every transaction on the network. Each transaction is verified by a number of validators, which is designed to filter out invalid or duplicate transactions. In the context of cryptocurrency, this permanent record of validated transactions is known as a “public ledger.” Different blockchains each use their own methods of validating transactions securely, and the blockchains themselves are generally independent and incompatible with each other.

Oracle

When it comes to Oracles, there's not that many out in range, but it's important to understand what they do and how they operate. Oracles are essential to the distributed ledger ecosystem because they expand the possibilities for smart contracts. Without decentralized oracles, smart contracts would only have access to data within their crypto networks, limiting their potential applications.

Decentralized oracles act as an abstraction layer that queries verifies, and authenticates off-chain sources before relaying that data on-chain.

Coin​

A coin is a cryptocurrency that operates its own blockchain and is generally used for transaction fees. Examples of popular coins include Bitcoin and Ethereum. This is different from a token, which exists on network for which it is not the native coin (see following definition).

Token​

A token is an asset that exists on a blockchain for which it is not that network’s native coin. A prime example of a token is SHIB, which is a token that runs on the Ethereum blockchain. The standard for which tokens are built on the Ethereum blockchain is called ERC-20.

Smart Contract​

A smart contract is a program on the blockchain that is designed to execute automatically when certain conditions are met. Smart contracts enable functionalities such as staking, swapping tokens, providing rewards – essentially any blockchain interaction that is more complex than sending tokens to wallets. In general, a smart contract cannot be changed or altered once being deployed to the blockchain.

An application built from smart contracts on the blockchain is known as a Decentralized Application, or dApp.

Blockchain Explorer​

Blockchain explorers are websites such as Etherscan that allow users to view the history of transactions on the blockchain. For example, a user can search for a wallet or smart contract and view all of its activity in chronological order. Explorers can also provide other userful information such as the breakdown of wallets holding each token.

Non-Fungible Token (NFT)​

A Non-Fungible Token, or NFT, is a class of asset where each token in the series is unique and different from the others. Contrast this to a fungible token like SHIB, where all SHIBs are equal to each other (no SHIB is worth more or less than any other). NFTs are mainly designed to be collectible assets, and can be traded on NFT storefronts like OpenSea or LooksRare. While some NFTs are purely collectibles, others may confer certain rights to the holder such as access to events and social clubs, ownership of a physical asset, etc. On the Ethereum blockchain, the standard protocols for NFTs are called ERC-721 and ERC-1155.

Centralized Exchange (CEX)​

A centralized exchange is a third-party platform that holds its user’s fiat and crypto holdings, and records transactions on its own ledger (as opposed to the blockchain, or public ledger). Examples of centralized exchanges are Binance, Coinbase, KuCoin, and Huobi. Each time a user transacts on these platforms, there is no corresponding record on the blockchain, as this all occurs internally within the CEXs own account. However, while this may be convenient for high-frequency traders, the reliance on a third-party ledger eliminates much of the purpose of using cryptocurrencies (see “Custody” below). Fortunately, the vast majority of CEX platforms allow a user to withdraw their crypto holdings to their own individual wallet that resides on-chain.

Custody​

On a centralized exchange, users do not automatically own the keys to their digital assets on the blockchain. These types of exchanges are called custodial accounts because the exchange holds the assets for its users, and provides them with access to trade them on the exchange. The only way to fully control your cryptocurrency is to withdraw it to a private wallet, which then transfers the assets to the user’s ownership.

An analogy in traditional finance would be having money in a savings account (where the bank has custody of the funds), versus having cash in a safe at home (self-custody). The principle of having self-custody over one’s own assets is a core part of Decentralized Finance (DeFi).

Decentralized Exchange (DEX)​

Decentralized exchanges use smart contracts such as automated market makers to process transactions on the blockchain, as opposed to a CEX which uses a traditional order book to match buyers and sellers. Instead of using an order book to determine market price, a DEX uses a mathematical formula to automatically adjust the price each time there is a buy or sell transaction. For example, ShibaSwap is a DEX that uses tokens supplied by liquidity providers to automatically facilitate peer-to-peer transactions. In turn, these liquidity providers in turn are rewarded with a share of the trading fees as well as other incentives such as token rewards.

Wallet​

A crypto wallet is a piece of software that allows a user access to their funds on the blockchain. This can be in the form of a mobile app, desktop web browser extension, or physical device to create and authorize transactions. This is different that leaving funds in a Centralized Exchange, as users with a wallet have full control over their funds.

For example, Metamask is an example of a browser-based wallet that is compatible with many chains including Ethereum, Polygon, BSC, Fantom, and more.

Decentralized Finance (DeFi)​

Decentralized finance is the means in which users can manage their money, investments, and transactions without relying on a third-party entity such as a bank or financial service provider. Key to DeFi are platforms driven by automated software and smart contracts that cut out the middlemen and enable true peer-to-peer interactions.