Sharding

Sharding is a Layer-1 scaling solution designed to improve the scalability of blockchain networks by splitting the blockchain into smaller partitions, or "shards," each capable of processing its own transactions and smart contracts. Instead of having the entire network validate every transaction, sharding allows different validators to work on different shards in parallel, increasing the overall throughput of the network. Sharding is a key feature in Ethereum's roadmap for ETH 2.0, aiming to address the network's congestion and high transaction fees. Example: In a sharded Ethereum network, one shard could handle transactions related to DeFi applications, while another shard processes NFT transactions, thereby improving efficiency.