What Is Boba Token (BOBA)? (An Easy Guide)

Introduction

A Layer 2 Ethereum scaling and augmenting solution, Boba Network lowers gas fees, enhances the capabilities of smart contracts, and improves transaction throughput. Boba Network’s native token, BOBA, reached an all-time high of $7.93 on Nov. 25, 2021, and recorded its all-time low of $0.99 on Nov. 19, 2021. Read on to learn more about Boba Network, how it works, and what the BOBA token has in store for its users.

What Is Boba Network? 

Founded by Alan Chiu in 2018, Boba Network is a blockchain augmenting solution based on the Optimism codebase with Layer 2 Ethereum scaling. Boba uses Optimistic Rollup technology, in which Optimism uses a smart contract to pass on transaction data from the main Ethereum chain to a Layer 2 network. The sequencer bundles multiple transactions into a batch, then submits the batch back to the main chain through a single transaction. 

Boba Network comprises innovative features, like a swap-based on-ramp, fast exit, and cross-chain bridging; aims to provide affordability to DeFi and NFT DApps on Ethereum; and supports micro-transactions, which are usually expensive on Ethereum. The network also improves transaction speed and costs by transferring them to Layer 2 while maintaining security levels from Ethereum.

Boba Network joins existing scaling solutions like Polygon, Arbitrum, zkSync and StarkWare to resolve Ethereum’s scalability issues. 

The word “boba” refers to round, chewy tapioca pearls which originate from Taiwan and are used in beverages. “Boba” can also refer to the entire drink itself — i.e., milk tea with boba is known as “boba milk tea.” After its rebrand from OMG Network to Boba Network, founder Chiu revealed that the name was chosen because “everyone has a smile when they drink Boba. That’s how we want our users to feel when they use [Boba Network]. It evokes happiness.”

What Is BOBA?

Boba DAO’s governance token, BOBA, can be staked on the Boba Network to earn rewards, and BOBA token holders can participate in the governance of the network. After obtaining the token, users are eligible to submit proposals, vote, and delegate votes for proposals on the DAO according to governance guidelines.

What Boba Network Does

Boba Network was created using the source code Optimism, which offers Optimistic Rollup technology. This augmenting solution reduces gas fees, improves transaction throughput, and extends the capabilities of smart contracts. Boba Network benefits from Ethereum because Boba acts as its child chain.

$BOBA is used for Boba DAO’s governance, which provides direction and community initiatives for the network’s future. Users holding $BOBAl get one vote for every token they stake on Boba Network. Holders of the token gain eligibility to vote, submit proposals, and delegate votes for proposals on the DAO based on governance guidelines.

Key Features of Boba Network

Below are some of the Boba Network’s features.

• Cheap transaction costs: Ethereum charges high gas fees that cost an average of $10–$50 per transaction. Boba Network solves this problem by reducing costs to levels much lower than those on the main Ethereum network. The gas price on L2 changes every 30 seconds, and is typically around 10 Gwei.
• Fast exit: Compared to conventional Layer 2 solutions, users can transfer their money in and out of the network much faster, generally only a few minutes. Depending on the specific L2 technology and implementation, it can offer from 50x to over 1,000x more throughput than Layer 1. The network offers quick exits backed by liquidity pools that are community-driven, reducing the Optimistic Rollup exit time to a few minutes, as opposed to the usual duration of around seven days. This also gives liquidity providers (LPs) incentivized yield farming opportunities. With yield farming, users can earn interest on their digital assets.
• Helps in NFT bridging: Users can mint, move and sell their NFT assets between L1 and L2, or even between different L2 solutions. This has made the development of NFTs, particularly GameFi, easier and more convenient. GameFi combines three massive markets: decentralized finance (DeFi), non-fungible tokens, and blockchain-based games.
• Makes hybrid computation easier: Boba Network lets Ethereum developers execute codes on web-scale infrastructure, similar to AWS Lambda (a computing platform provided by Amazon). Thus, sophisticated algorithms that are practically impossible to perform on-chain can be implemented.
• Secured by Ethereum: As an Optimistic Rollup Layer 2 protocol, Boba Network works with Ethereum’s security.
• Offers scalability for smart contracts: This helps Boba developers on Ethereum build DApps using algorithms without spending a lot of money. Boba allows developers to feed executed code into algorithms on web-extensive infrastructure.
• Boba Bridge helps transfer assets from Ethereum to Boba, as well as between other Layer 2 blockchains.

BOBA Tokenomics

The live Boba Network price on Dec. 13, 2021 stood at $3.16, and its current live market cap is almost $500 million. It has a circulating supply of over 155 million BOBA coins, with a maximum supply of 500 million. In 2022, the price of BOBA is predicted to reach a minimum of $4.66 and a maximum of $5.23, with an average price of $4.78. 

Pros and Cons of Boba Network

Like any blockchain solution, Boba Network comes with both pluses and minuses. Some of these are as follows.

Pros

Users benefit from the security and decentralization of Ethereum and rapid execution at low transaction costs on Boba. The network allows NFTs to launch and bridge to Ethereum in a cost-effective manner. It also offers fast exits backed by community-driven liquidity pools and a Boba NFT Bridge.

Cons

As of this writing, it’s difficult to determine BOBA’s true value, since it was launched only recently. However, users are participating in its current airdrop, which earns them free tokens. The BOBA token is down almost 3,36% in the last seven days, indicating risk in framing segments. While the coin has strong fundamentals, it could lose some of its value over the short term.

Is Boba Network (BOBA) a Good Investment? 

Boba Network’s value is expected to continue to increase — the price of one BOBA might hit $3.07 by the end of 2021. In an estimated five-year plan, BOBA will reach the $14.67 mark. Boba also offers a bounty program with payouts of up to $100,000, depending on how destructive the discovered bug is/can be.

Buying BOBA Tokens

Boba network has made the Boba token available on a limited number of exchanges. The steps to buy BOBA on Bybit are listed below.

• First, create an account on Bybit and verify it. 
• Purchase an amount of USDT to fund your BOBA purchase.
• After securing the cryptocurrency, check the Wallets section. Your tokens should show up shortly after you make your purchase.
• Visit the Markets section and click on Spot, where you can trade BOBA/USDT from the dropdown list.

Closing Thoughts

In the future, BOBA might be used for governance of the Boba DAO, which helps with community initiatives and direction for the network’s future. Users who hold the Boba token will get one vote for every token they stake on the Boba Network. The Boba token has gained popularity, but true momentum will likely kick in once it’s made available on more exchanges. Ultimately, the Boba Network is an accessible and cheaper version of Ethereum that brings crypto to the masses — and, like its name, it’s a delicious treat that makes you want to come back for more.