Imagine a highway system that automatically builds new lanes when traffic gets heavy. That’s essentially what Quai Network does with dynamic sharding - it automatically adds processing capacity when demand increases.What is Dynamic Sharding?
The protocol automatically creates new execution shards (processing channels) when the network becomes congested, expanding capacity without human intervention or network upgrades.How It Works:
Network monitors demand: Protocol tracks congestion indicators in real-time
Automatic expansion: When thresholds are met, new region and zone chains are created
Seamless integration: New chains immediately join the existing consensus system
Balanced growth: All regions gain additional zones to maintain network harmony
The Key Advantage:
Unlike other blockchain networks that require hard forks or compromise security when scaling, Quai adds capacity automatically while maintaining full decentralization and security.
What are Uncle Blocks?
Think of uncle blocks as “traffic jams” in mining. When multiple miners find valid blocks simultaneously, only one becomes part of the main chain - the others become “uncles.”Why This Matters:
High uncle rate = Network congestion (too many miners competing for limited space)
Reduced efficiency = Wasted mining energy and slower transaction finality
Clear signal = Time to add more capacity
How Quai Responds:
When uncle blocks consistently exceed a threshold ratio, the protocol automatically:
Creates new region and zone chains
Integrates them into the global consensus
Distributes mining power across more chains
Reduces congestion and restores efficiency
Result: High hash efficiency maintained, fast finality preserved
What is Gas Limit?
Each block has a maximum computational capacity (gas limit). When blocks consistently hit this limit, it means demand exceeds supply.The Fee Problem in Other Networks:
Ethereum example: When blocks are full, fees can reach $50+ per transaction
Bidding wars: Users compete by paying higher fees for limited block space
User experience: Transactions become expensive and unpredictable
Quai’s Solution:
When blocks consistently reach their gas limit, the protocol automatically adds new execution shards, ensuring:
Fees stay under $0.01: Increased capacity eliminates fee competition
No bidding wars: Always enough block space to meet demand
Predictable costs: Users know transaction fees will remain affordable
Result: Unlimited scalability without compromising affordability
What’s the Tradeoff?
The only cost of adding capacity is increased time to global settlement - but this doesn’t affect transaction safety or usability.
10 seconds: Transaction finalized (safe and permanent)
3,300 seconds: Global settlement (can spend funds in other regions)
Why This Design Works:
Most transactions happen within the same region where settlement is fast. Cross-chain operations are less frequent and users can plan accordingly.
The Formula:
Average time to Global (prime) settlement can be measured by the following equation, where:
TSₚ = Average time to Global (prime) settlement (in seconds)
nz = Number of zones per region
nr = Number of regions in the system
tz = Zone block time (in seconds) = 5
TSp=nz2∗nr2∗tzWhat This Means:
Settlement time increases with the square of both regions and zones per region
5 seconds: Zone block time (where most transactions occur)
Total time: Scales predictably with network size
Number of Regions
Number of Zones per Region
Total Zones
Time to Global Settlement†
3
3
9
405s
4
4
16
1,280s
5
5
25
3,125s
6
6
36
6,480s
7
7
49
12,005s
8
8
64
20,480s
Important Notes:
Settlement times are averages - actual times vary due to the random nature of mining
~50% of transactions settle faster than the average time
All transactions are final and secure well before settlement completes
Understanding the Distribution:
The diagram below shows how cross-chain transaction times are distributed. While the average global settlement is 3,300 seconds, half of transactions complete faster than this.