What Is the Concept of “Sharding” in Blockchain Architecture?
Sharding is a database partitioning technique applied to a blockchain network. It involves dividing the network into smaller, more manageable segments called "shards," each capable of processing transactions and smart contracts independently.
This parallel processing drastically increases the overall transaction capacity and scalability of the network. Each shard maintains its own state and transaction history.
Glossar
Security Architecture Differences
Attestation ⎊ Security architecture differences across cryptocurrency, options trading, and financial derivatives largely stem from varying trust models; traditional finance relies on centralized attestation via clearinghouses and regulatory bodies, while decentralized finance necessitates cryptographic proofs and consensus mechanisms.
Blockchain Sharding Concepts
Scalability ⎊ Blockchain sharding represents a database partitioning technique applied to distributed ledgers, aiming to improve transaction throughput and network capacity by dividing the blockchain into smaller, manageable segments known as shards.
DeFi Trading Architecture
Architecture ⎊ ⎊ DeFi trading architecture represents a composable stack of smart contracts and off-chain components facilitating automated trading strategies within decentralized ecosystems.
Crypto Legal Architecture
Foundation ⎊ The crypto legal architecture describes the foundational set of laws, regulations, and judicial interpretations that govern digital assets and their derivatives.
Blockchain Architecture Benefits
Benefit ⎊ Blockchain architecture offers significant advantages for financial derivatives by enhancing market efficiency and reducing operational friction.
Hardware Security Architecture
Attestation ⎊ Hardware Security Architecture, within cryptocurrency, options trading, and financial derivatives, establishes a root of trust for verifying the integrity of execution environments.
Crypto Trading Architecture
Architecture ⎊ Crypto trading architecture refers to the technological framework that supports trade execution, data dissemination, and risk management across various platforms.
Monolithic Architecture
Characteristic ⎊ Monolithic architecture describes a blockchain design where all core functions ⎊ execution, consensus, and data availability ⎊ are tightly coupled and processed by the same set of nodes.
Lightning Network Architecture
Topology ⎊ The Lightning Network Architecture is characterized by a decentralized, peer-to-peer topology of bidirectional payment channels layered atop a base blockchain like Bitcoin.
Balancer V2 Architecture
Architecture ⎊ The Balancer V2 Architecture represents a significant evolution in Automated Market Maker (AMM) design, centralizing liquidity management through a flexible vault structure.