UNIVERSITY INSTITUTE OF

ENGINEERING
COMPUTER SCIENCE ENGINEERING
Bachelor of Engineering (Computer Science & Engineering)
Subject Name: Blockchain Technology
Subject Code: 20_CST-412

Advent of algorand and sharding

Mapped with CO4

Prepared By: DISCOVER . LEARN . EMPOWER

Er. Ankita Sharma 1
• Sharding is a database partitioning technique used
by blockchain companies with the purpose of scalability, enabling them to
process more transactions per second.
• Sharding splits a blockchain company's entire network into smaller
partitions, known as "shards."
• Each shard is comprised of its own data, making it distinctive and
independent when compared to other shards.
• Sharding can help reduce the latency or slowness of a network since it splits
a blockchain network into separate shards.
• However, there are some security concerns surrounding sharding in which
shards can be attacked.
• Security concerns surrounding sharding include a hack or shard
takeover, where one shard attacks another, resulting in a loss of
information.
• As the popularity of blockchain grows, so too does the workload and
transactional volume that is handled by the network.
• If we think of a blockchain as a shared database, as more and more
data is added, the network needs to find new ways to be able to
process all of that data efficiently and quickly, which is where sharding
can help.
 Scalability Issue
• However, one of the major challenges with blockchain technology is
that as additional computers are added to the network and more
transactions are processed, the network can become bogged down,
slowing the process—called latency.
• Latency is a hurdle to blockchain being adopted for widespread use,
particularly when compared to the current electronic payment systems
that work quickly and efficiently.
• In other words, scalability is a challenge for blockchain since the
networks may not be able to handle the increased amounts of data and
transaction flow as more and more industries adopt the technology.
 How Sharding Is Accomplished
• Currently, in blockchain, each node in a network must process or handle all
of the transaction volumes within the network.
• Nodes in a blockchain are independent and are responsible for maintaining
and storing all of the data within a decentralized network. In other words,
each node must store critical information, such as account balances and
transaction history. Blockchain networks were established so that every node
must process all of the operations, data, and transactions on the network.
• While it ensures a blockchain’s security by storing every transaction in all of
the nodes, this model slows transaction processing considerably. Slow speeds
for processing transactions do not bode well for a future in which blockchain
becomes responsible for millions of transactions.
• Sharding can help since it partitions or spreads out the transactional workload from a
blockchain network so that every node doesn't need to handle or process all of the
blockchain's workload. In a way, sharding compartmentalizes the workload into
partitions or shards.
• Horizontal Partitioning
• Sharding can be accomplished through the horizontal partitioning of databases through
division into rows.
• Shards, as the rows are called, are conceptualized based on characteristics. For
example, one shard might be responsible for storing the state and transaction history
for a specific type of address.
• Also, it might be possible to divide shards based on the type of digital asset stored in
them. Transactions involving that digital asset might be made possible through a
combination of shards.
• Sharding and Security
• One of the main issues in the practice that has arisen is security.
Though each shard is separate and only processes its own data, there
is a security concern regarding the corruption of the shards, where
one shard takes over another shard, resulting in a loss of information
or data.
• If we think of each shard as its own blockchain network with its
authenticated users and data, a hacker or through a cyber attack
could take over a shard. The attacker could then introduce false
transactions or a malicious program.
• Ethereum has combated the potential of a shard attack by randomly
assigning nodes to certain shards and constantly reassigning them at
random intervals. This random sampling would make it difficult for
hackers to know when and where to corrupt a shard.
References
• https://www.computerworld.com/article/3336187/sharding-what-it-i
s-and-why-so-many-blockchain-protocols-rely-on-it.html
• https://www.investopedia.com/terms/s/sharding.asp