> For the complete documentation index, see [llms.txt](https://hub.bsvblockchain.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hub.bsvblockchain.org/higher-learning/bsv-academy/bsv-network-topology/essentials-of-teranode-microservices-and-infrastructure-solutions/hash-based-sharding.md).

# Hash-Based Sharding

<figure><img src="https://3421145409-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FRTEKu4E7Fvtss3GI9CYU%2Fuploads%2Fxaq7AUue7EwRTW1Hgz8k%2Fhas.gif?alt=media&amp;token=21768010-ecca-4475-b23e-544d091ed7df" alt=""><figcaption></figcaption></figure>

To efficiently distribute transaction data across the network, Teranode employs a technique known as **hash-based sharding**. Each transaction is assigned a unique identifier through the **SHA-256 hashing algorithm**, which ensures that every transaction ID is distinct and minimizes the risk of collisions.

The sharding process involves:

1. **Hashing the Transaction**: Each transaction's inputs, outputs, and metadata are hashed to generate a unique transaction ID.
2. **Distributing Data**: The transaction ID is used to determine which shard (or node) will store the transaction data, ensuring an even distribution across the network.
3. **Scalability**: This method allows Teranode to achieve a throughput of approximately **3.5 million database transactions per second**, accommodating the influx of one million Bitcoin transactions while efficiently managing updates and deletions.

By utilizing hash-based sharding, **Teranode enhances its scalability and performance**, making it well-suited for high-demand environments.


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