ttackers with up to O(n) resources)</li>
</ul>
<p>The key challenge of scalability is finding a way to achieve all three at the base layer of a blockchain - sharding is one such attempt at solving this challenge.</p>
<h2 id="what-is-sharding">What is sharding?</h2>
<p>Currently, in all blockchain protocols each node stores the entire state (account balances, contract code and storage, etc.) and processes all transactions. This provides a large amount of security, but greatly limits scalability: a blockchain