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Adaptive state sharding

Adaptive state sharding is the optimal approach to blockchain sharding where all three types of sharding are combined:

State sharding:
Where the “state” or history of the entire network is split across different “shards” or sections of the network. Each shard has its history/ledger, and nodes (computers connected to the network) only need to hold the state of the shard they are in, dramatically reducing the amount of latent storage capacity they require.

Transaction sharding:
In which transactions are mapped to shards for processing based on criteria like the sender’s address, and each shard processes transactions in parallel to other shards. Here, each node keeps a record of the state of the entire network.

Network sharding:
Handles the way nodes are grouped into shards and can optimize communication, as sending messages to nodes in a shard can be done much faster than to the entire network.

Adaptive state sharding works as a solution to the scalability conundrum by improving communication inside shards and increasing the network’s performance and efficiency. It does this by combining all three sharding types into a solution that enables parallel processing on all levels. Shards are smaller sections of the network and are used for scaling. Each shard handles a portion of the state (accounts, smart contracts, blockchain) and transaction processing so that each shard can process only a fraction of the transactions in parallel with other shards.