What is Sharding in Crypto with Example

If you’re new to blockchain technology, you may have heard the term “sharding” thrown around. But what exactly is sharding, and why is it important? In this article, we’ll break it down what is sharding for you in simple terms.

Sharding is a technique used in blockchain technology to improve scalability. In a traditional blockchain, every node on the network has to process every transaction that occurs. This means that as more transactions occur, the network becomes slower and more resource-intensive.

Why Sharding is Needed in Crypto

Sharding solves this problem by breaking the network up into smaller groups called “shards.” Each shard is responsible for processing a subset of the transactions on the network. This means that each node only has to process a fraction of the total transactions, making the network faster and more efficient.

Let’s understand Sharding with a simple example

To illustrate this, imagine a library with only one librarian. Every time someone wants to check out a book, they have to go to the librarian, who checks to see if the book is available, checks it out, and updates the library’s records. As more people come into the library, the librarian becomes overwhelmed and the system slows down.

Now imagine that the library has multiple librarians, each responsible for a different section of the library. When someone wants to check out a book, they go to the librarian responsible for that section. This librarian checks to see if the book is available, checks it out, and updates the records for that section. This makes the system faster and more efficient since each librarian only has to deal with a subset of the total books.

In a blockchain using sharding, each shard is responsible for processing a subset of the transactions on the network. This means that each node only has to process a fraction of the total transactions, making the network faster and more efficient.

Key Takeaway

In conclusion, sharding is a technique used in blockchain technology to improve scalability. By breaking the network up into smaller groups called “shards,” each responsible for processing a subset of the transactions on the network, the system becomes faster and more efficient. It’s like having multiple librarians in a library, each responsible for a different section, making the system faster and more efficient.