Definition ∞ A sharding protocol is a scalability solution for blockchain networks that divides the database into smaller, more manageable segments called shards. Each shard processes a subset of the network’s transactions and smart contract executions independently and in parallel. This division of labor significantly increases the overall transaction throughput and reduces network congestion. Sharding aims to improve performance without compromising decentralization or security.
Context ∞ Sharding protocols represent a critical area of development for many Layer 1 blockchains, particularly Ethereum, which is undergoing a transition to a sharded architecture. News frequently reports on the progress and technical challenges associated with implementing these complex scaling solutions. Discussions often compare sharding with other scalability approaches, such as rollups, and their respective impacts on network efficiency and decentralization.
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