Sharding is a way to increase a BlockchainBlockchainA public ledger where transactions are grouped into blocks, each linked to the one before, so past records can't be altered without it showing.'s capacity by splitting the network into several parts, called shards, that process transactions at the same time. Instead of every NodeNodeA computer that runs a crypto network's software, keeps a copy of the blockchain and checks that new transactions and blocks follow the rules. processing every transaction on the network, each shard handles its own share. The term comes from databases, where large databases are split across many machines.
Think of a shop opening more checkouts. One queue can't move faster than its cashier, but with more checkouts, more customers can be served at once.
How does it work?
Each shard looks after part of the accounts and smart contractsSmart contractA program that runs on a blockchain and automatically carries out what it was written to do once certain conditions are met. and processes their transactions. The network as a whole makes sure all the shards agree on one shared state, and transactions can move between shards. When demand grows, more shards can be added, so capacity can grow with use.
Examples
- NEARNEAR Protocol (NEAR)A fast blockchain that splits itself into shards to process many transactions at once, with a strong focus on AI. NEAR is the network's coin. uses a form of sharding called Nightshade. Users see a single network, because the split happens behind the scenes.
- Ethereum took a different path. Instead of splitting its main chain into shards, it sends much of its traffic to layer 2 networksLayer 2A system built on top of a blockchain such as Ethereum or Bitcoin to make transactions faster and cheaper than on the base network itself., and the sharding idea is used there only to add space for their data.
Good to know
Sharding increases capacity but makes a network more complex. Transactions between shards can take a little longer, and each shard has to be as secure as the network as a whole. Every network solves this in its own way.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 4 November 2026.