Sharding technology has appeared long before blockchain and has been used in a number of systems from business database. Sharding is a method which horizontally partitions data within a database. The database is fragmented into smaller parts called “shards”, and then they are put together to form the original database.
With blockchains, their network is made out of nodes which are connected peer to peer, which is not governed by one entity. The nodes store all states of the network and handle transaction processing. While this system is more secure, it does face difficulties with scaling as the network increases in size at a rapid pace. This problem is because the consensus only increases linearly.
When the network experiences such strains, the transaction costs and times increase significantly.
Sharding has been considered to be a complex solution to the scaling problem. By grouping subsets of nodes into shards, the system is able to process transaction in parallel which increases the volume it can…