What is Sharding?

The Sharpe ratio is used by various banks and large fund managers. They combine it with other techniques to evaluate portfolio performance. In addition, the Sharpe ratio can be used to analyze financial markets (e.g., the stock market).<\/p>\n<p>Though keep in mind that <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-ponzi-scheme/">Ponzi schemes<\/strong><\/a> can also have a high Sharpe ratio. However, Ponzi scheme data is deceptive and doesn&rsquo;t show the actual returns. Thus, always check if the data is accurate before using the Sharpe ration.<\/p>","definition":"a ratio used to assess the potential Return on Investment (ROI).","status":"published","meta_title":"What is Sharpe Ratio? Definition & Meaning | Crypto Wiki","meta_description":"Sharpe Ratio meaning: Sharpe Ratio - a ratio used to assess the potential Return on Investment (ROI).","meta_keywords":null}" :prev-section="{"id":731,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Ethereum#Performance","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-11-10T18:46:45.000000Z","slug":"what-is-shard-chain","title":"What is Shard Chain?","section":"S","keyword":"Shard Chain","content":"<p><strong>Shard Chain<\/strong>, also known as sharding in the field of computer science, <strong>happens when a blockchain is split into smaller portions also known as shards<\/strong>. Essentially, shard chains are a scaling option for blockchain-based platforms.<\/p>\n<p>Let&rsquo;s take the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum network as an example. By splitting it into shards, Ethereum hopes to combat the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-scaling-problem/">scaling problem<\/strong><\/a>. This way each shard will have a set of accounts balances and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-smart-contract/">smart contracts<\/strong><\/a> because each shard contains many of its own independent states.<\/p>\n<p>In Ethereum&rsquo;s case, the implementation of shard chains is the most complex solution the company has taken to scale the network.&nbsp;<\/p>\n<p>As mentioned above, when it comes to cryptocurrencies, <strong>sharding is a possible solution to the scalability problem since this process has the capability to amplify the number of transactions per second<\/strong>. Additionally, it can fix certain network congestion issues.&nbsp;<\/p>\n<p>It&rsquo;s important to note that the shards don&rsquo;t contain all of the data. This information can still be shared between various nodes and all entries on the public ledger are visible thus keeping the blockchain secure and decentralized.<\/p>\n<p>The scalability problem can be countered by either increasing the database in size or by sharding. Unlike the former, <strong>validators within shard chains don&rsquo;t require powerful and high-priced computers<\/strong>. The main advantage of choosing the sharding solution is that the network will remain easily accessible and decentralized which is the selling point of any blockchain.&nbsp;<\/p>","definition":"Shard Chain, or sharding, defines the process of taking a database within a network and splitting it horizontally into shards.","status":"published","meta_title":"What is Shard Chain? Definition & Meaning | Crypto Wiki","meta_description":"Shard Chain meaning: Shard Chain - Shard Chain, or sharding, defines the process of taking a database within a network and splitting it horizontally into shards.","meta_keywords":null}" :model="{"id":700,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Sharding","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-11-10T18:46:35.000000Z","slug":"what-is-sharding","title":"What is Sharding?","section":"S","keyword":"Sharding","content":"<p>Sharding is a <strong>scalability strategy<\/strong> that allows <strong><a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-blockchain/">blockchain states to be divided into segments holding states and transaction histories, allowing each <strong><a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-shard/">shard to be evaluated simultaneously. Since it separates blockchain networks into different shards, <strong>sharding might assist in reducing network lags and slowness. <\/strong>However, there are several security issues with sharding, including the possibility of shard attacks.<\/p>","definition":"a scalability approach that divides blockchain states into pieces that individually store states and transaction histories, allowing each shard to be assessed at the same time.","status":"published","meta_title":"What is Sharding? Definition & Meaning | Crypto Wiki","meta_description":"Sharding meaning: Sharding - is a scalability approach that divides blockchain states into pieces that individually store states and transaction histories, allowing each shard to be assessed at the same time.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master&rsquo;s degree on Economics, Politics &amp; Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US&rsquo; Western and Japan&rsquo;s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He&rsquo;s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain &amp; Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? The Pros & Cons","status":"published","modified_content":null},{"chapter_id":2,"order":4,"slug":"coin-vs-token","title":"Coin VS Token: How Do They Differ?","status":"published","modified_content":null},{"chapter_id":2,"order":5,"slug":"what-are-stablecoins","title":"What are Stablecoins, Altcoins & Wrapped Coins?","status":"published","modified_content":null},{"chapter_id":2,"order":6,"slug":"what-is-a-bitcoin","title":"Bitcoin: the Pioneer of the Crypto World","status":"published","modified_content":null},{"chapter_id":2,"order":7,"slug":"what-is-ethereum","title":"The Ultimate Blockchain for dApp Creation: Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":8,"slug":"what-is-cardano-in-crypto","title":"What is Cardano and What is It Used For?","status":"published","modified_content":null},{"chapter_id":2,"order":9,"slug":"what-is-shiba-inu-coin","title":"Shiba Inu: the Dogecoin 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Crypto","status":"published","modified_content":null}]},{"id":3,"title":"Crypto Exchanges","slug":"crypto-exchanges","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-exchanges.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-exchanges-101.jpg","rating":80,"sections":[{"chapter_id":3,"order":1,"slug":"how-do-cryptocurrency-exchanges-work","title":"How do Cryptocurrency Exchanges Work?","status":"published","modified_content":null},{"chapter_id":3,"order":2,"slug":"dex-vs-cex","title":"DEX VS CEX: Two Sides of the Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":3,"order":3,"slug":"crypto-day-trading","title":"Crypto Day Trading: The Difference Between Buying, Trading, and Swapping","status":"published","modified_content":null},{"chapter_id":3,"order":4,"slug":"kyc-crypto","title":"KYC & AML: The Key to Complying With Legal Industry Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto 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The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens 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Tokens?","status":"published","modified_content":null},{"chapter_id":8,"order":5,"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","status":"published","modified_content":null},{"chapter_id":8,"order":46,"slug":"portfolio-diversification-definition","title":"Portfolio Diversification: The Whats, the Whys, and the Hows","status":"published","modified_content":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-mining.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-mining-101.jpg","rating":80,"sections":[{"chapter_id":9,"order":1,"slug":"what-is-crypto-mining","title":"Crypto Mining: What It is and How Does It Work?","status":"published","modified_content":null},{"chapter_id":9,"order":2,"slug":"what-is-a-mining-pool","title":"Mining Pools: Is Collective Mining Better Than Solo 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