According to Binance, sharding splits a blockchain into multiple shards that validate transactions in parallel to increase throughput and capacity, enabling parallel validation and higher network performance, source: Binance Academy. Binance explains that by raising capacity, sharding can reduce congestion and lower transaction costs during peak demand, which improves on-chain execution conditions for market participants, source: Binance Academy. Binance also notes that sharding relies on validator coordination and security mechanisms across shards to maintain network integrity while scaling, source: Binance Academy.