Sharding is a way to solve the scalability problem of Blockchain?

Summary - Sharding is a method of dividing a blockchain network into multiple independent parts, with each part processing transactions in parallel to increase speed and performance. - This technology helps to reduce the load on each node, lower the cost of participating in the network, and increase the number of transactions that can be processed per second. - Sharding comes with security risks such as single shard control attacks and the complexity of transactions between different shards.

Scalability Issues - The Biggest Challenge of Blockchain

Blockchain technology once promised to revolutionize how we manage data and exchange assets. However, current blockchain networks are hitting a wall: overdue processing capability. This is a point within the famous “impossible trilemma” of blockchain - balancing three factors including scalability, security, and decentralization. Achieving all three at the same time remains a tough puzzle, until strategic solutions like sharding emerge.

What is Sharding - Splitting to Solve

Sharding originates from traditional database management but is applied to blockchain with a clear purpose: to divide the workload so that no node is overloaded.

In essence, sharding divides the blockchain network into smaller “segments” - each segment operates as an independent mini blockchain. These segments can process transactions and execute smart contracts simultaneously with each other, rather than waiting on one another as in traditional systems.

Blockchain Data Processing - Two Completely Different Ways

To understand why sharding is important, we need to grasp how blockchain typically operates:

Traditional method (sequential processing): Each blockchain node must process all transactions, store all data, and verify every block. This ensures high security - each node is a complete copy of the blockchain. But the price is speed: as the number of transactions increases, the network will slow down because everything has to be processed sequentially.

Method with sharding (parallel processing): Work is split - node A only needs to handle segment 1, node B only needs to handle segment 2, etc. Each segment operates independently, allowing multiple transactions to run simultaneously. Result: significant speed increase but complexity also rises.

Horizontal Zone Vs Vertical Zone - Why Blockchain Chooses This Way

There are two ways to partition data in a database - horizontal and vertical - but blockchain prioritizes horizontal partitioning ( that sharding performs:

Horizontal Partitioning: Divide data by rows - each row goes into a different partition. For example, user A's transaction goes to partition 1, user B's transaction goes to partition 2. Each node only needs a complete subset of data, undivided.

Vertical partitioning: Split data by column - one node holds the name, another node holds the balance, etc. This method breaks data integrity and requires each node to connect with multiple other parts for verification, increasing complexity.

Why horizontal partitioning is better with blockchain:

1. Better scalability - Each shard can process transactions independently, without waiting for other shards.
2. More decentralized - Nodes do not need access to all data, fall resource requirements, allowing more participants.
3. Better security - Each segment still contains complete transaction data, ensuring integrity instead of breaking down information.

Real Benefits of Sharding

) Trading Speed Soars

Instead of processing transactions sequentially, sharding enables parallel processing across shards. If the network has 64 shards, theoretically it can process 64 times more transactions than currently.

A clear example: Zilliqa, a blockchain network using sharding, achieves thousands of transactions per second. This is sufficient to support a large number of users without causing congestion.

Participation Cost in the Network Falls Sharply

Typically, becoming a validator requires a powerful computer because it needs to store the entire blockchain. With sharding, you only need to store a segment - the workload and costs are significantly reduced.

This democratizes the network: not only can those with huge resources participate, but anyone with a regular computer also has the opportunity to become a validator.

Overall Network Performance Improvement

In traditional blockchain, as more nodes participate, the network becomes slower due to the need to synchronize with everyone. But with sharding, new nodes can join a specific shard instead of the entire network - the overall performance is not affected and can even increase.

Limitations of Sharding - Potential Risks

Segment Control Attack

The computational power needed to control a shard is much smaller than that required to control the entire network. An attacker only needs to compromise a validator in a shard ### known as “shard control” ( to be able to corrupt or alter data. This increases the attack vector compared to non-sharded blockchains.

) Very Complex Inter-Segment Transactions

When you send money from segment A to segment B, the coordination between the two segments becomes complicated. If not managed carefully, a “double spending” situation can occur - you spend the same coin twice because the two segments are unaware that each other has confirmed the transaction.

Data Availability Incident

If validators in a shard go offline simultaneously, the data of that shard will be inaccessible. This disrupts the entire network as transactions of the shard cannot be verified or processed.

Resource Balance Difficulty

Sharding requires a complex resource balancing mechanism. If not implemented correctly, data may be unevenly distributed among shards, causing one shard to be overloaded while another remains idle.

Synchronization Lag

When many nodes need to share and update information with each other, network latency can increase. If any node processes slowly, the entire synchronization process will be delayed.

Ethereum Is Bringing Sharding to Reality

Ethereum did not choose sharding by chance. In the Ethereum 2.0 upgrade plan ### also known as Eth2 or Serenity(, sharding is an important part to solve the scalability problem.

Currently, the upgrade is taking place in phases. The final phase )Phase 2( will include full sharding deployment. Ethereum developers hope it will fall network congestion and lower transaction costs that the network is currently facing.

However, Ethereum is not in a hurry. Because sharding carries many security and decentralization challenges, the development team is conducting extensive testing and thinking carefully before fully deploying to ensure there are no loopholes.

Conclusion - The Future of Blockchain May Depend on Sharding

Sharding represents a leap forward in overcoming the blockchain trilemma. While it introduces new complexities, the ability to scale speed without sacrificing decentralization is a great promise.

Not only Ethereum but many other blockchains are also exploring sharding. Each time a network successfully implements sharding, it not only benefits that network but also contributes experience to the entire blockchain ecosystem.

But the key to success lies in continuous research, development, and rigorous testing - just as leading development teams like Ethereum are doing.