Sharding is a database and distributed systems scaling technique that horizontally partitions a larger dataset or network state into smaller, more manageable subsets called shards. Each shard operates as an independent, parallel chain or database instance with its own transaction history and state, processed by a dedicated subset of network validators. This architecture allows the overall system to process many transactions concurrently, significantly increasing total throughput and reducing individual node storage requirements compared to a monolithic chain where every node processes every transaction.
