Sharding is a database architecture technique that divides large datasets into smaller, more manageable pieces called shards. Each shard is stored on a separate server, allowing for improved performance and scalability. This method helps distribute the load, making it easier to handle large amounts of data and user requests. By using sharding, organizations can enhance their system's efficiency and reduce the risk of bottlenecks. When a query is made, it can be directed to the relevant shard, speeding up data retrieval. This approach is commonly used in large-scale applications, such as social media platforms and e-commerce websites.