Concept Of Sharding In Blockchain. Explained!

Blockchain sharding is a method to enhance the scalability and performance of blockchain networks by dividing the overall blockchain into smaller, more manageable pieces called “shards.”

Each shard operates as a mini-blockchain with its own subset of data and processing power, enabling parallel transaction processing and thus improving the network’s throughput.

It is an On-chain scaling approach. Also called horizontal scaling.

Example of Blockchain Sharding

Imagine a busy city with only one main highway (representing non-sharded blockchain).

All the cars (transactions) have to use this single highway to travel from one place to another, leading to heavy traffic and congestion.

As a result, the speed at which cars can move (transaction processing speed) is significantly reduced.

Now, let’s implement sharding.

Instead of just one highway, the city is divided into several districts, each with its own dedicated smaller highway. These smaller highways represent the shards.

Cars traveling within a particular district use that district’s highway, reducing the overall traffic on any single highway. This allows cars to travel faster and reduces congestion.

In blockchain terms:

Single Highway (Non-Sharded Blockchain): All transactions are processed sequentially on one chain, leading to bottlenecks as more transactions are added.

Multiple Highways (Sharded Blockchain): The blockchain is divided into several shards, each processing its own set of transactions independently and in parallel. This division increases the overall throughput of the network.