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Onchain Economics
Infrastructure

Sharding

A scaling technique that partitions a blockchain into smaller pieces (shards) that can process transactions in parallel.

In-Depth Explanation

Sharding splits the network so each node only processes a portion of transactions, increasing throughput. The challenge is maintaining security and cross-shard communication. Ethereum's roadmap includes danksharding focused on data availability for rollups. Full execution sharding remains technically complex.

Related Terms

Layer 2

L2

Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.

Blockchain

A distributed, immutable ledger that records transactions across a network of computers using cryptographic linking.

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Gas Fees

Transaction fees paid to validators/miners for executing operations on a blockchain.

Gwei

A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.

Layer 2

L2

Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.

Layer 1

L1

The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.

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