What is Shardeum (SHM)?

Deep Dive

1. Purpose & Value Proposition

Shardeum addresses blockchain’s scalability trilemma by combining horizontal scaling (via dynamic sharding) with Ethereum Virtual Machine (EVM) compatibility. Its goal is to support high-demand applications like AI and decentralized finance without compromising decentralization or security. By splitting the network into smaller, parallel-processing “shards,” Shardeum aims to maintain low fees even during peak usage (Shardeum blog).

2. Technology & Architecture

Built as an EVM-compatible Layer 1, Shardeum uses dynamic state sharding to automatically adjust the number of shards based on network demand. This allows linear scaling: adding nodes increases throughput (transactions per second) while reducing latency. Validators can participate with minimal hardware, lowering entry barriers compared to traditional Proof-of-Stake chains. Smart contracts and dApp support are planned for later phases, building on its EVM foundation.

3. Tokenomics & Governance

SHM serves as the network’s native currency with four core utilities:
- Staking: Validators stake SHM to secure the network and earn rewards.
- Gas fees: Transactions and smart contracts consume SHM, with fees burned to reduce supply.
- Governance: Holders vote on protocol upgrades and parameter changes.
- Rewards: Distributed to validators and community contributors via airdrops and incentives.

Conclusion

Shardeum positions itself as a scalable, community-centric blockchain leveraging sharding to rival Web2 infrastructure speeds. Its EVM compatibility and low-cost model aim to attract developers and validators alike. With mainnet features like smart contracts still rolling out, can Shardeum balance scalability and decentralization as adoption grows?