A database concept that will enable Ethereum 2.0 to make 100,000 TPS or just an empty shell that will fold under the power of centrally controlled networks? In this article, you will get to know the basics of sharding and its advantages over standard ways of transferring virtual digital assets.
Concept of Sharding
Sharding is a partitioning optimization technique that comes from database organizations. Essentially, sharding refers to splitting up the database, or blockchain, into different parts called shards.
These distinct parts act like transaction channels that increase the throughput of a network by spreading out its load. For instance, as of today, the Ethereum network can handle only 14.5 transactions per second (TPS). However, with the 2.0 update, the platform is planning to level up by switching to the Proof-of-Stake timestamping scheme and introducing a 64-shard system.
The new Ethereum concept will enable the network to support about 100,000 TPS in peak hours. The comparison of this throughput rate to other platforms’ capabilities is detailed in the table below.
Platform | TPS |
Ethereum 2.0 | 100,000 |
Polkadot | 1,000 |
Elrond | 15,000 |
Visa | 24,000 |
Bitcoin | 7 |
To make it easier to understand, think of platforms as urban cities. As a city grows, it needs more roads to avoid traffic jams and congestions. Same with digital platforms, because they need more digital memory and traffic channels to handle larger trading volume and workload.
Computer engineers use the sharding technique to split the network into partitions that process information independently. It helps to adjust the system’s throughput capabilities to meet the rising workloads. One of the first networks to implement sharding is Elrond. You can trade EGLD to CRO or, on the opposite, purchase Elrond digital coins at the Godex platform.
Sharding Essentials in the Blockchain System
The issue of slow network performance is closely related to many users’ interest in decentralized blockchain technologies. Various blockchain platforms like Polkadot, Elrond, and Ethereum started adopting sharding to improve the speed of their platforms. Sharding also enables the scalability of networks without deterioration in their performance.
Blockchains are comprised of nodes. Each node in a blockchain must store and process data like account balances, operations, and transaction history. While running information and storing it in every node is extremely secure, it becomes impractical with a larger workload. Sharding helps solve this issue.
There are two types of sharding: vertical and horizontal. The former sharding approach refers to a technique of dividing a network into columns (shards) based on the characteristics of the info. For instance, one column is responsible for processing transaction history, another for account balances.
The latter is an approach that refers to a technique of dividing nodes between a certain number of shards and computers. For instance, the network has 5,000 nodes partitioned between 10 shards. One shard will be responsible for 500 nodes. In that case, nodes process data faster because they have to store only 1/10 of it.
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Sharding Benefits
Here are some of the advantages of blockchains that utilize the sharding technique:
- Increased throughput. In other words, platforms with multiple shards can scale their network capacity according to their needs. It enables them to sustain more business operations per second without compromising performance.
- Reduced performance issues. By allocating workload between shards, networks can operate without risking being shut down in case any of the shards fails to function as expected.
- Wide availability. With faster transactions and larger storage, platforms will be able to provide their services to more users. It will also allow networks to lower their technical and internet connection requirements.
To Sum Up
Sharding is an innovative database concept that is gaining support amongst cryptocurrency enthusiasts. Blockchain networks use sharding to solve latency problems and increase throughputs of their platforms.
In essence, decentralized platforms that utilize shards will likely make centralized financial institutions redundant shortly.