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Hash-Based Sharding

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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