Ethereum Sharding: The ETH Upgrade to Finally Solve The Gas Fee Problem?

Ethereum sharding is a network upgrade designed to resolve the scalability problem.

Once implemented, it will enable the network to process a much higher number of transactions per second and, at the same time, reduce ETH gas fees.

The long-awaited solution still looms on the horizon with no exact date for implementation. Nonetheless, it is important to investigate the Ethereum sharding technology now so as to make use of it at its fullest upon release.

What is Ethereum Sharding?

Ethereum sharding refers to a scalability solution proposed for the Ethereum blockchain. It aims to improve the network’s performance by dividing the blockchain into smaller pieces called shards. Each shard operates as an independent chain with its own set of smart contracts and transaction history.

The goal of sharding is to increase the throughput and capacity of the Ethereum network by allowing multiple shards to process transactions in parallel. This approach helps alleviate congestion and reduces the burden on the main Ethereum chain, also known as the “mainnet.”

In a sharded Ethereum network, validators are assigned to specific shards, and they only validate transactions and execute smart contracts within their assigned shard. This parallel processing capability enables the network to handle a significantly larger number of transactions compared to the current Ethereum architecture.

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Originally published at https://www.liquidloans.io.