Using Private Shards to build private network on top of Public Blockchain

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The main goal of sharding is to overcome scalability issues. Without sharding, every node in the network has to process all transactions and execute all smart contracts.

The basic idea of sharding is to parallelize execution by dividing the network into smaller components or shards.

Nodes are then assigned to different shards with separate account balances. Each shard essentially corresponds to a separate blockchain that can be run almost independently of the other shards. This means that transactions on one shard are only processed by the nodes on that shard and, consequently, more transactions can be processed overall.

The sharding mechanism also allows private shards. In a private shard the control chain cannot see the transactions on the shard, it only provides FaaS( Finality as a Service ) and coordination to relaunch deadlocked shards.

The private shard can ultimately run its own consensus algorithm and use its own identity providers and anonymity revokers.

Private shards provide a cheap way for an individual, country or corporation to launch their own blockchain. Private shards benefit from the use of GTU and tooling provided by Concordium as well as the control chain that acts as a fallback mechanism.

This unique approach by Concordium will help scale Enterprise Blockchain on Public Blockchains.