Sharding is a technique borrowed from traditional databases, adapted to optimize blockchain performance. Essentially, this method involves dividing the entire blockchain into several smaller sections, called “shards”, which operate individually but simultaneously. Each shard operates as a mini-blockchain, capable of processing transactions and smart contracts independently. In a typical system, all nodes in a blockchain network must process each transaction. Instead, with sharding, each node only handles transactions that belong to a particular shard. This reduces node load and increases speed across the entire network. Want to really understand how the cryptocurrency world works and the technology behind it? For all those passionate about innovation, we have prepared the essential guide: What is blockchain? Bitcoin and the blockchain technology revolution.
The basics of sharding are
- Network splitting
The blockchain is divided into several independent shards. Each shard manages a subset of transactions and data.
- Parallel processing
Each shard simultaneously processes its own transactions, which leads to a significant increase in the overall capacity of the network.
- Cross-Shard Communication
For the network to remain unified, the shards must communicate with each other. Thus, transactions that affect multiple shards are coordinated to maintain consistency and security.
- Central coordination layer (e.g. Beacon Chain in Ethereum)
A master chain controls the activity of all beacons, synchronizing the entire network and ensuring overall security.
Benefits of sharding
Sharding can revolutionize the way blockchains manage scalability. Here are the main benefits this technology brings:
- Extended scalability
Thanks to parallel processing, sharded blockchains can handle a much higher volume of transactions per second (TPS) compared to traditional architectures.
- Higher speed
By reducing congestion and concurrent processing, transaction confirmations are much faster, resulting in a more pleasant user experience.
- Reduced hardware requirements
Each node stores and processes only the data relevant to its own stake. This makes network participation more accessible while maintaining decentralization.
- Energy efficiency
By optimizing data processing, sharding can reduce energy consumption per transaction, especially on blockchains that use PoW-like mechanisms.
Challenges and risks
While sharding holds the promise of better scalability, its implementation comes with its own set of challenges:
- Implementation complexity
Creating a robust sharding system requires major architectural changes. Managing cooperation between shards is a difficult technical challenge.
- Shard security
Partitioning the network into several smaller shards can increase the vulnerability to attacks, such as a 1% attack. To combat this problem, validators are often randomly and rotatably assigned to the shards.
- Synchronization between the shards
Coordination of transactions involving multiple darts is one of the most complex parts of this system. The protocol used must ensure data consistency between the shards without compromising security.
- General adoption
Because sharding involves a complete restructuring, adoption of the technology in existing networks may be delayed.
Sharding in practice
An example of a blockchain implementing sharding is Ethereum, specifically after transitioning to Proof of Stake (PoS), Ethereum is working on implementing Danksharding with the goal of significantly increasing transaction capacity to thousands of TPS.
Other projects utilizing this technology include:
- Near Protocol – Uses sharding models to allow decentralized applications to scale easily.
- Polkadot – Project enables interconnection between multiple scalable blockchains through an advanced form of sharding.
Interested in buying or selling cryptocurrencies? You can find an up-to-date price by visiting our dedicated cryptocurrency price list page.