What is Blockchain Sharding: Explained

Blockchain technology, also known as distributed ledger technology (DLT), is the backbone of Web3 innovations, including cryptocurrencies, the metaverse, NFTs, and more. To enhance the functionality and use cases of these networks, which are often seen as more secure alternatives to traditional Web2 servers, developers have adopted various technologies. One such approach is sharding, which improves blockchain networks by increasing speed and scalability.

Understanding Sharding

Sharding is inspired by the approach of dividing traditional databases into smaller, more manageable units. This approach simplifies and speeds up access to necessary data.

As cryptocurrency exchange Coinbase explained in a blog post, sharding refers to the process of splitting a larger blockchain network into smaller, more manageable parts called shards.

When a blockchain is sharded, its transaction data will be split into multiple shards, each of which is capable of processing transactions and executing smart contracts. Each shard operates like an independent blockchain ecosystem.

Each shard is assigned its own node, reducing the workload of the main blockchain nodes. This reduces the possibility of network congestion and significantly increases transaction processing speed. Shards can also communicate with each other to verify information on the main chain.

Because sharded blockchains offer faster transaction speeds, they are more attractive to developers looking to build and support their Web3 protocols. This scalability increases as developers customize and test blockchains for various use cases. In this way, sharding can improve the efficiency and scalability of blockchain networks.

Challenges associated with sharding

According to an article in Crypto.com’s Web3 awareness section, University, security vulnerabilities have been one of the main challenges facing distributed ledger technology (DLT) or sharding technology in blockchain systems.

Sharding in blockchain is vulnerable to hacker attacks due to its low computing power or hash rate. In addition, if the complex sharding process is not performed correctly, it may jeopardize the security of the entire blockchain.

Despite these risks, many blockchains utilize sharding to prevent network overload and maintain efficiency. Ethereum, one of the most widely used commercial blockchains, has implemented sharding, as have platforms such as Zilliqa, Cardano, and QuarkChain, according to the Crypto.com blog.