Ethereum is planning to boost its scalability through sharding technology and this is very good news for the crypto market.

Vitalik Buterin, 24-year-old founder of Ethereum, has announced on Monday that sharding will be introduced to the Ethereum network. If it happens, it would tackle a huge hurdle for Ethereum and could seriously explode the market cap of the coin. It may also enable it to overtake Bitcoin as the primary cryptocurrency used to conduct business.

According to Buterin's comment on Reddit, the primary goal is "massive scalability improvement." If the concept is successful, each one of the shards or partitions will have "as high capacity (and likely more) than the existing Ethereum chain," he noted.

One of the issues with blockchain technology is scalability. Currently, any transaction executed on blockchain technology -- Bitcoin, Ethereum or Ripple -- is executed as one giant wrapped-up operation.

Having so much information move on the same node slows down the transaction process. As a result, cryptocurrencies can only execute so many transactions at once, slowing down the process and limiting the product's scalability. As each new legitimate crypto has been formed and accepted the speed of the transaction has been improved. Ethereum is faster than Bitcoin, and other coins are faster than both.

In the case of Ethereum, it is not just a cryptocurrency. It's a network for applications and a transaction system. Recall a few months back when Ethereum was essentially shut down by the overabundance of 'cryptokitties' being purchased on its network. With Ethereum carrying two hats, and limited in speed, scalability of Ethereum is a real issue.

Enter sharding. You can think of shards as partitions that allow to break down and optimize verification of transactions.

If Ethereum can successfully develop sharding technology, the process of executing a transaction on its network will speed up dramatically. We'll see a vastly expanding number of crypto transactions per second and this will mark a new stage in Ethereum's quest for scalability.

What could go wrong? Sharding comes with some concerns. To many the key appeal of crypto is just that it's cryptic and allows for anonymity while also securing and verifying the transaction. Sharding brings into question the security of each transaction. Securing sharding of a transaction over a blockchain network is crucial to the users of any given currency.

It will be interesting to see whether Ethereum can successfully execute this proof of concept. If they do, it is a game changer for Ethereum and the currency could easily run back over 1,000.00 a coin if not much higher.