Sharding can reduce network congestion and increase transactions per second through the creation of new chains. A sharded database is split horizontally to distribute the load. Computer scientists often use this technique.
Through the creation of new chains, or shards, in the world of cryptocurrency, specifically in Ethereum, sharding can reduce network congestion and increase the number of transactions per second.
Sharding is the process of splitting the Ethereum network into multiple parts, i.e. shards. In essence, each shard consists of many independent states, and this means that they each contain a unique set of account balances, as well as smart contracts. The most complex solution that Ethereum can offer is sharding.
It is important to keep in mind that information stored within a shard can still be shared across multiple nodes, and this keeps the ledger itself decentralized as well as secure as everyone can still see the ledger entries. All of the information is not processed or stored in the shards.
As an alternative to scaling up by increasing the size of your existing database, sharding can be an effective way to scale if you prefer to keep things decentralized. In this case, Ethereum would be less accessible to network validators since they would need more powerful and expensive computers. Shard chains allow validators to store only the run and prime data for each chard they are validating, rather than the entire network. In turn, this can reduce hardware requirements and speed things up.
In Phase 1 of Ethereum’s Serenity upgrade, the Ethereum blockchain will be divided into 64 shard chains, which will be coordinated by the Ethereum 2.0 Beacon Chain.
Sharding is a multi-phase upgrade to Ethereum designed to make it more scalable and more efficient. There will be 64 new chains for the network. The low hardware requirements make running a node simpler. The upgrade will follow the merger of Mainnet and Beacon Chain.
Model Each shard in Ethereum 2.0 has the same state transition function (STF), which governs how each block can change the state of the blockchain. Through this interface, smart contracts can be executed. Contracts exist on a single shard and can be sent asynchronously between shards.