It is well known that Ethereum has scalability issues regarding the time and cost required to complete a transaction. For example, the gas fee for purchasing an NFT on the Ethereum network can be up to $100.

The lack of scalability with blockchains is a recurring issue, even though they are being implemented in increasing pilot programs for everything from international financial transactions to supply chain management.

As a result, the developer community is working on Sharding, a multi-phase upgrade to improve blockchain scalability and capacity. So, what exactly is sharding blockchain, and why is it important in blockchain technology?

1. What Is Sharding?

Sharding definition and importance in blockchain technology

Sharding is a database partitioning technique used by blockchain companies to increase scalability by processing more transactions per second. Sharding divides a blockchain company’s entire network into smaller partitions known as “shards.” Each shard is made up of its data, making it distinct and distinct from other shards.

Sharding blockchain, which divides a blockchain network into separate shards, can help reduce network latency or slowness. However, there are some security concerns about sharding, such as the possibility of shards being attacked.

2. Why is Sharding Important?

Sharding definition and importance in blockchain technology

Because all nodes must agree on the legitimacy of a transaction before it can be processed, blockchain networks can only process a limited number of transactions at once.

Every node in the blockchain will typically keep the entire blockchain history and process every transaction. As a result, blockchain networks like Ethereum and Bitcoin can be described as “decentralized.”

Data Compression

Because every full node has a copy of the network’s entire history, hostile actors will find it much more challenging to take control of the network and potentially undo or modify transactions. However, preserving blockchain decentralization and security comes at the expense of the technology’s scalability.

Sharded blockchains prevent nodes from downloading the entire blockchain’s history or validating every transaction that passes through the network. This improves network performance and enables blockchains to scale to handle a more significant number of users.


The most significant benefit of using sharding on a blockchain is increased scalability. Through sharding, a blockchain can connect more nodes and store more data without significantly slowing down transaction times.

This can accelerate the adoption of blockchain technology across a wide range of industries, not the financial sector. If transactions can be completed more quickly, fintech businesses that use blockchain technology may find competing with centralized payment systems easier.

Better Accessibility

Additional benefits of sharding may include increased network involvement and improved user accessibility. Ethereum sharding is expected to reduce the hardware required to run a client, making it possible to do so on a consumer device such as a personal computer or even a mobile phone. As a result, more people will have the opportunity to join the network.


Work can be distributed more effectively across a blockchain network if it is sharded and distributed.

The use of sharding in real-world applications provides a compelling case for expanding sharding-related initiatives in the coming years.

Despite this, sharding blockchain is necessary to work toward optimizing the procedure and resolving any obstacles that may arise to achieve the best results. In case you are seeking a full blockchain development service, contact SmartOSC.

Contact us if you have any queries about Blockchain development services, dApps development, NFT marketplace development, Crypto wallet development, Smart contracts development.