Nowadays business and governments regard cryptocurrencies and blockchain technology to cut costs and make transactions faster and cheaper. But they have faced with the problem of scalability: the big amount of decentralized applications, high quantity of transactions, business requirements and demand on services provide this problem.
As cryptocurrency developers, so efficiency systems are trying to be competitive and find the scalability solution. We can find information about how Bitcoin and EOS fight with the problem. The first one expands the block size and the second one upgrades consensus coherence. But even so, it is really hard to the blockchain-based systems to compete with Visa, for example. Now Visa is the fastest way to send transactions and many businesses appreciate this advantage, but still looking for decentralized systems to implement. And that system which is the first to solve the scalability will get all.
The state sharding and transaction processing sharding are the scalability solution. The shard is like a storage for the smart-contracts' data and transactions.
Ontology Sharding network solves scalability with:
linearly scalable performance;
transactions inside a shard being only processed by nodes in this shard;
atomic cross-shard transaction processing;
uniformed incentive mechanism in all shards.
The Ontology sharding uses hierarchical sharding architecture to gain global network enlargement. So that it could be settled to use other consensus protocols, that are different from what the original shard were used before.
The Ontology team works on its product improvment and does their best to be competitive.