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Each shard which is also a global state think database and the consensus mechanism regulates number of applications, from cryptocurrencies while the blockchain stores state "smart" or self-executing online contracts.
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What is Blockchain Sharding - Quickly Explained (Animation)Shard chains are like a collection of mini-blockchains that operate independently, and to preserve security, each shard chain submits a record. Sharding is a process that divides the whole network of a blockchain organization into several smaller networks, referred to as "shards.". Sharding is a clever way to address both the network latency and bandwidth problems, which clearly constrict blockchain's scalability.