# What is Shardeum (SHM)?

By [baiiue](https://paragraph.com/@baiiue) · 2024-10-14

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Shardeum is a **Layer 1 blockchain** built on **EVM architecture**. It uses a unique **Dynamic State Sharding mechanism** to maintain **linear scalability** and ensure efficient cross-shard communication at a granular level. This approach helps increase **transactions per second (TPS)** with each additional user, solving key blockchain scalability challenges.

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### **Addressing Blockchain’s Scalability Trilemma**

Shardeum aims to overcome the typical blockchain trade-offs between **security, decentralization, and scalability** by incorporating the following elements:

1.  **Security:**
    
    *   It leverages **Proof of Stake (PoS)** combined with **Proof of Quorum**, ensuring that validators are closely monitored and the network is protected from potential attacks.
        
2.  **Decentralization:**
    
    *   Using **Dynamic State Sharding**, Shardeum splits the blockchain into smaller independent shards, distributing control evenly among participants and ensuring a **fair and decentralized** ecosystem.
        
3.  **Scalability:**
    
    *   Shardeum’s **auto-scaling** feature adjusts both the number and size of shards as needed, increasing network capacity and allowing it to grow efficiently with demand.
        

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### **Consensus Mechanism**

Shardeum employs multiple consensus models to balance **security** and **decentralization**, including **Proof of Stake (PoS)** and **Proof of Quorum**.

*   **Proof of Quorum:**
    
    *   In this model, nodes validate transactions by generating receipts. Each node signs the **transaction hash** and sends it to the next node.
        
    *   Once **more than 50% of the nodes** have signed the receipt, the transaction is confirmed, representing the network’s consensus.
        
*   **Transaction-level Consensus:**
    
    *   Shardeum differs from other blockchains by achieving consensus at the **transaction level** instead of block level. This allows transactions to be processed independently within separate shards, enhancing efficiency and preventing overlaps.
        

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### **Dynamic State Sharding**

Shardeum’s **Dynamic State Sharding** allows transactions to be divided across various shards, ensuring that tasks do not interfere with each other. If one shard is compromised or encounters an issue, **other shards remain unaffected**, preserving the system’s functionality. This **modular design** enables Shardeum to maintain high performance even during network disruptions.

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### **Key Benefits of Shardeum**

*   **EVM Compatibility:**
    
    *   Developers can seamlessly deploy and migrate Ethereum-based DApps to Shardeum without major code changes.
        
*   **Increased Scalability:**
    
    *   Each new node enhances the network’s TPS, ensuring that scalability grows **linearly** with demand.
        
*   **Robust Security:**
    
    *   The combination of PoS and Proof of Quorum strengthens security while minimizing reliance on a single validator group.
        

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Shardeum’s **transaction-level consensus**, **dynamic sharding**, and **scalable architecture** set it apart from traditional blockchains, offering a robust solution to the challenges of security, decentralization, and scalability.

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*Originally published on [baiiue](https://paragraph.com/@baiiue/what-is-shardeum-shm)*