Blockchain networks have to boost their throughput to encourage adoption from DeFi platforms and fintech companies,
One of the strategies being explored to boost speed and efficiency is sharding. Developers are exploring sharding to increase a network’s throughput and give it a competitive edge.
What is Sharding?
Sharding involves splitting the infrastructure of a network into smaller pieces so that a single node does not have the responsibility of processing the transactional load of the entire network. By splitting, every node will be responsible for maintaining details about its shard.
The details included in each shard will still be shared with other nodes. This strategy enhances the decentralization of the entire network and boosts security. Despite the partition, everyone on the network can still see all the ledger entries.
Ethereum Exploring Sharding
Ethereum has been facing issues with scalability, which has exposed it to potentially losing its dominance in decentralized finance to other upcoming projects such as Solana and Polygon. To maintain its competitive edge, Ethereum developers have been looking into several ways of boosting scalability. One of the strategies being explored is sharding.
If Ethereum can implement sharding effectively, it could boost the speed of the entire network. As much as Ethereum needs sharding, the platform has been working on the strategy since 2013, and there is no definite timeline on when it will be implemented.
Sharding is among the many upgrades planned to be implemented with Ethereum 2.0. However, it will most likely be among the last things done with this upgrade because of its complexity.
Some blockchains have successfully implemented sharding as a way of boosting scalability. One of these is Apollo, which made history as the first cryptocurrency to implement sharding successfully in an active blockchain. Apollo sharding came into effect in April 2019.
Apollo clinched a space as one of the fastest and most secure networks in the market with this update. Other cryptocurrencies that have also been associated with sharding include Ziliqa and QuarkChain.
The benefits of sharding make it a viable option for developers who want to upgrade their platforms. Fintechs are looking for cryptocurrencies to partner with, and sharding could be one of the solutions that active blockchains need to explore.