Sharded Blockchain

MultiversX, formerly known as Elrond, features a unique approach to blockchain scalability and efficiency through its use of a sharded blockchain architecture. This design is intended to enhance the network's capacity to process transactions, execute smart contracts, and manage data. Here’s a simplified explanation of how MultiversX's sharded blockchain works, especially focusing on its implementation of sovereign shards:

Sharded Blockchain Architecture

Sharding is a method used to scale blockchains. It breaks the network into smaller, manageable pieces called shards, each capable of processing transactions and smart contracts independently. This parallel processing capability significantly increases the network's overall throughput.

Sovereign Chains in MultiversX

MultiversX introduces the concept of "sovereign chains," which takes the sharding mechanism a step further. Sovereign chains are essentially independent blockchains that operate under the umbrella of the main MultiversX network. These chains have the autonomy to define their own rules, governance models, and even have their own tokenomics, while still benefiting from the security, interoperability, and scalability of the main MultiversX blockchain.