## How Sharding Addresses the Scalability Limitations of Blockchain



As the blockchain network grows, a single chain often struggles to handle the increasing transaction volume. This is why many developers are looking for solutions to increase network capacity without compromising security. One innovative approach is sharding—a technology that breaks a large blockchain into smaller segments that can operate in parallel.

## How Sharding Works in Blockchain Networks

Sharding works by dividing the workload of the blockchain into several parts called shards. Each shard is a miniature blockchain that has its own ledger and is capable of processing transactions independently. Meanwhile, a main chain called the Beacon Chain or main chain is responsible for coordinating all shards and ensuring they work harmoniously.

This concept enhances the scalability of Layer 1 by changing the way the mainnet blockchain operates. By splitting data and transactions into various shards, the network can handle far more activity compared to if it were to continue using a single centralized blockchain.

## Ethereum and Upcoming Sharding Implementation

Ethereum is a real-world example of how Sharding will change the blockchain ecosystem. In Ethereum's development plan, the Beacon Chain will manage 64 separate shards that work together. This process is part of Ethereum's transition from Proof of Work to a more efficient and easily scalable Proof of Stake. The original Proof of Work chain will be merged with the Beacon Chain Proof of Stake, and subsequently, sharding will be integrated into the system.

## Benefits of Sharding for Validators and Nodes

The implementation of sharding brings significant benefits to network participants, especially validators and node operators. One of the main advantages is the reduction of data storage burden. Without sharding, each validator must store the complete history of the entire Blockchain, which is very heavy and costly. With sharding, validators only need to store the specific shard data that they validate, not the entire network.

This makes running a node easier and more accessible to more people, thereby increasing the decentralization of the network.

## Sharding and Rollup Technology: Synergy, Not Competition

There may be an assumption that sharding and rollup are direct competitors. In fact, they complement each other. Rollup is a technology that moves transactions off-chain and packages everything to be validated again on the main chain. Without sharding, rollup has to rely on a single main chain to process the results of their compression, which still limits speed.

However, when sharding is implemented, rollups can report their status to various shards in parallel. This means rollups can operate faster and more efficiently as the load is no longer centralized on a single chain.

## Risks to Consider

Although sharding offers many advantages, there is one major concern that should not be overlooked: the risk of attacks on individual shards. If malicious actors succeed in taking control of a particular shard, they can compromise the data integrity in that portion and potentially have a negative impact on the entire network.

Loosening security standards and coordination can make attacks on shards easier to realize compared to attempting to take over the entire network without sharding. Therefore, sharding implementation must be accompanied by strict security protocols and ongoing monitoring to maintain system integrity.
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