Overview
In a traditional blockchain, every node must process every transaction. Sharding changes this by dividing the network's state and transaction load among different groups of nodes.
How it Works
Each shard acts like its own mini-blockchain with its own set of transactions and account balances. Nodes only need to maintain the data for their specific shard, greatly increasing the total capacity of the network.
Challenges
- Cross-Shard Communication: Ensuring that shards can talk to each other securely.
- Security: A smaller number of nodes per shard could make individual shards easier to attack (1% attack).