WazirX founder launches new Web 3.0 platform to address scaling issues

According to Shetty, blockchain scalability is one of the biggest obstacles to crypto adoption as the existing infrastructure is slow and costly. He is not the only one to think so. Platforms such as Algorand have been created to solve the scaling issues in existing ones such as Ethereum and Bitcoin.

The rapid growth in user base on all major blockchain networks has slowed them down due to network congestion, which in turn makes them costly to maintain. Scaling issues can arise either because of storage concerns, or due to fees (called gas fees) associated with cryptocurrency transactions.

Unlike storage networks on Web 2.0, such as Amazon Web Services or Google Cloud, Web 3.0 platforms are decentralized and data is replicated across multiple locations, making scaling troublesome.

Shardem claims to solve this issue by using a method called sharding, which distributes the processing load of the blockchain by breaking it down into smaller segments called shards. Nodes only have to validate data on individual shards, rather than validating every piece of data on the network. This is supposed to reduce the workload of a node, and in turn reduce network congestion. Which results in an increase in transactions per second.

To be sure, Shetty and Syed’s platform are not the only ones exploring the sharding. In fact, sharding has been proposed as an added feature for upcoming versions of the Ethereum platform as well. Ethereum 2.0 should split the network load into 64 shards, although sharding may not come to that network until next year.

Shetty claimed that implementing sharding on Ethereum may not be as easy as expected, as it may be difficult to move non-sharded networks to sharded networks. “Replacing an existing network is going to be a very long process. This is why when Ethereum starts sharding, they will also have a limited number of shards,” he said, referring to sharding specifically as a starting point. Made with, and will have unlimited shards.

Shetty said that as the number of users increases, the need for more nodes on the network will increase. As more nodes join the network, more shards will be created, and transactions per second will improve accordingly.

The company will also launch a utility token called SHARD ($SHM), which will also be used as a reward for verifying and running decentralized apps (dapps). Shetty said that low transaction fees and immediate finality in processing transactions could make Shardem an attractive proposition in emerging markets such as India and Brazil where crypto trading has increased recently.

The first version of Shardem – AlphaNet – is expected to launch in April 2022, followed by a second version, called BetaNet, in the third quarter of 2022. Mainnet, which is the final version, will launch in late 2022. Shetty said the white paper for the project would be released soon.

He also said that Shardem will take a “community first” approach like other Web 3.0 platforms today. “We’re going to build openly, which is why we haven’t raised any funds yet,” he said. “We wanted to open up the project first and bring in the community. We would sell the minority to investors, while in the case of mining and airdrops would be real to the majority community.”