What is sharding in crypto and why does it matter? 🧵

1/ Sharding divides a network into smaller pieces (shards) to improve speed and scalability. It’s key for handling high transaction volumes in decentralized systems. 🚀

2/ Each shard operates like a mini-network with its own ledger and nodes. They work in parallel and communicate to ensure data consistency across the entire network. 🔗

3/ Unlike Bitcoin’s single-layer transaction process, sharding processes data in fragments, allowing faster and more efficient operations. ⚡

4/ Ethereum 2.0 uses sharding to solve scalability issues, while Bitcoin hasn’t adopted it yet. Other solutions include:

Lightning Network: Off-chain transactions for speed.

Rollups: Bundling transactions to save resources.

5/ Risks include potential security breaches in shards and technical challenges to maintain network consistency. 🚧

6/ Sharding is a game-changer for scalability, but it’s still evolving. Could it be the future of blockchain? Let us know your thoughts! 👇