Scalability is one of the biggest challenges faced by blockchain networks since the current distributed ledger protocols are facing heavy congestion and the networks are expanding YEAR BY YEAR. However, when you hit the scaling limits of the design-build of existing protocols, security isn’t exactly the best. It’s important for developers to increase the features of the network to stay ahead in the market. In traditional blockchains, scalability is the biggest issue they have to overcome. This is where the new solution by top layer 1 blockchains such as Ethereum – Shardeum comes into picture.
Shardeum makes it possible for blockchain networks to handle thousands of transactions per second and provide a better user experience due to its layer 1 blockchain technology. If you want to go deep inside “how Shardeum tackles scalability challenges,” then scroll down and read the complete blog post. Shardeum node efficiently processes a specific shard of the blockchain, ensuring parallel processing and high throughput. Shardeum nodes in each shard collaborate to validate transactions, ensuring network security and agreement. Advanced consensus methods and cryptography also enhance transaction security and enhancing system resilience.
Shardeum – L 1 solution with high security
Shardeum is based on Ethereum Virtual Machine (EVM) & layer 1 blockchain technology that solves the scalability problems and provides next-level decentralization with high security. It is designed to be an efficient and secure way to store, transfer, and trade digital assets. Shardeum offers a wide range of features, such as smart contracts, asset management tools, and more, to provide unlimited scalability.
On the other hand, if we talk about traditional blockchain networks, then all nodes in the network go through the consensus process, which can result in scalability issues as the network expands.
The work of Sharduem is to divide the network into smaller groups, or shards, and each shard has its own consensus mechanism. In this way, users are able to perform more transactions in parallel, resulting in increased scalability.
Proof of Authority in Shardeum
The first consensus mechanism on a blockchain was Proof of Work. But nowadays, most users know about proof-of-authority. Proof of authority is mainly used by private blockchains due to its greater authority in consensus algorithms.
Here’s how it works:
Blocks and transactions are verified by pre-approved validators using the proof-of-authority consensus algorithm. There are some general rules that PoA follows for validators, such as:
1. The validators must be willing to risk their reputations and make investments on the blockchain.
2. It’s important to identify their validity through the complete network.
3. Additionally, the validator’s background should not be immoral.
Benefits of Shardeum
Let’s checkout the three benefits of Shardeum that separate it from other layer 1 blockchains:
1. When the network is running, different types of nodes collect the rewards in the form of tokens.
2. It will be possible to scale Shardeum linearly through the use of dynamic state sharding. In the dynamic state sharding, each node has its own range, unlike static state sharding.
3. Shardeum is working to create a separate consensus to validate each transaction, Instead of processing at the block level.
Shardeum stands out from other blockchain projects as consensus and processing is completed at the transaction level, rather than the block level and hence deploying a shardeum node is beneficial for developers and end-users. Dynamic state sharding is employed to evenly distribute compute workload, storage, and bandwidth among all nodes. This parallel processing of transactions results in minimal overhead for validator nodes, as they only need to store the state data of the transactions in which they are involved.
Types of Node in Shardeum
There are mainly 3 types of nodes in Shardeum:
1. Validator Nodes
Validator nodes are responsible for authenticating transactions through consensus. These nodes are lightweight in nature because they are not responsible for storing the complete history of transactions.
2. Archive Nodes
The work of archive nodes is to maintain the record of whole transactions history. As a part of this function, these nodes are primarily responsible for offloading historical transaction data that perform in validator nodes.
3. Standby Nodes
The role of standby nodes is to help Shardeum to overcome the scalability issue when there is a spike in traffic. There is no requirement for them to stake SHM (WIP), however, they collect some rewards in the form of WIP network.
Importance of Shardeum in Blockchain Network Hosting
As we discussed in the introduction, scalability is a primary issue for blockchain networks. Also it impacts the speed and efficiency of transactions. So to unlock its full growth potential, Shardeum understands the importance of scalability and has developed a solution to tackle this challenge in its blockchain network hosting.
Here are some important factors that will help you understand how Shardeum is helpful for blockchain network hosting:
1. EVM layer 1 network
Most business and startup founders are looking for the optimal solution to host dApps. If you are one of these, then the ideal solution is sharding that uses Solidity and Vyper.
2. Shardeum offers high scalability and low gas costs
To improve the speed of transactions per second and load more data into different chains, the sharder leverages cross-chain technology. Sharder takes advantage of various systems to nurture users with high scalability and low gas fees.
3. Enhanced Security
In order to enhance the level of security, it uses different types of nodes, such as standby, rotation, and Proof of Stake with slashing. Are you familiar with PoQ? Unlike other consensus algorithms, Proof of Quorum has advanced features that set it apart from others.
4. No Intermediary
Shardeum operates within a dynamic P2P network, where users are empowered to exchange Shardeum directly without the involvement of a third-party intermediary. The blockchain makes all transactions secure and transparent that are stored on the Shardeum blockchains.
Let’s Wrap It Up
The new blockchain network providers are working hard to deal with scalability and security. Shardeum is revolutionizing the blockchain industry, and the growth potential is huge. So, if you are looking to host a blockchain application or deploy a Shardeum node, then you can consult someone who has expertise in this field.
