The implications for investors are profound. While most blockchains have fixed capacity and experience fee spikes during high demand, Shardeum autoscales capacity to maintain costs under one cent regardless of network traffic. “For institutions that enable high-frequency transactions, merchant settlements, DeFi trades without cost shocks. For retail, it keeps the doors open for mass participation,” Shetty said.
“Shardeum is not just another Layer 1 but also a payment-grade network designed to bridge the payment gap, capable of supporting high-frequency use cases such as merchant settlements, gig worker payouts, and microtransactions,” he emphasized. The architecture specifically targets emerging market usage patterns where transaction volumes run high but individual values remain small.
Shetty’s pivot to blockchain infrastructure comes amid ongoing discussions around WazirX’s operational challenges. Rather than shying away from the controversy, he’s using it as validation for building more resilient systems through radical transparency.
“Trust in this industry doesn’t come from slogans, but rather from transparency and fundamentals,” Shetty told Benzinga. “At Shardeum, we’ve been building in the open, whether that’s stress-testing Unstablenet under real-world conditions or running 500+ Proof of Community events globally.”
The numbers tell a remarkable story of grassroots engagement. In India alone, Shardeum has held 288 events with over 18,000 attendees. Globally, the project has educated more than 30,000 people on blockchain applications beyond speculation. “That kind of awareness and education builds long-term confidence,” Shetty noted.
“I believe credibility comes from two things: what you build and how you behave when tested,” Shetty said. “With Shardeum, we’re proving both. We’re building in the open through Unstablenet, Proof of Community events, and transparent communication, and focusing on fundamentals: scalability, affordability, decentralization.”
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The startup has secured $5.4 million in strategic funding, with particular interest from U.S.-based investors who view Shardeum as core financial infrastructure rather than another speculative blockchain project.
“We’ve seen strong interest globally, especially from U.S.-based investors, because they see Shardeum not just as another Layer 1 but as a core financial infrastructure for billions of users,” Shetty said. “That capital is helping us scale our ecosystem, support developers, and drive adoption in India and beyond.”
What sets Shardeum apart from competitors lies in its unique approach to the blockchain trilemma. “Shardeum is solving the trilemma of scalability, affordability, and decentralization simultaneously,” Shetty told Benzinga. “Unlike other L1s that compromise one dimension, our dynamic state sharding delivers linear scaling while keeping fees predictably low.”
The technical architecture deliberately maintains low hardware requirements for validators, ensuring broad participation rather than centralization among large data centers. “We’ve intentionally kept hardware requirements low so that individuals, small businesses, and operators in emerging markets can participate as validators, not just large data centers,” he said.
Shardeum’s positioning as a PayFi platform reflects Shetty’s belief that blockchain’s killer application lies in payments, not speculation. The network’s sub-cent transaction fees and autoscaling capabilities make it economically viable for use cases that other blockchains cannot support economically.
“PayFi is about solving real problems,” Shetty emphasized. “With autoscaling and low fees, Shardeum can power microtransactions, remittances, gig worker payouts, and everyday retail. Investors like that this isn’t just for crypto-native users — it’s infrastructure for billions who may never call themselves ‘crypto users’ but still need faster, cheaper payments.”
The vision extends far beyond traditional cryptocurrency applications. Shetty envisions micro and nano-payments at scale, enabling content creators to receive instant payments for every view or Internet of Things devices to transact with each other in real time. “We’re already in discussions with partners exploring these models, and once they go live, it will show investors that blockchain isn’t just about trading, it’s about enabling entirely new business models that couldn’t exist before,” he revealed.
The network recently gained Markets in Crypto-Assets acknowledgment in the European Union, providing regulatory clarity that institutional investors increasingly demand. This recognition positions Shardeum as a compliant infrastructure capable of bridging traditional finance with Web3 applications.
“Clear rules shift the conversation from ‘if’ to ‘how much,'” Shetty observed. “MiCA validates our approach of building real-world payment rails. Institutions see that with autoscaling, predictable fees, and compliance alignment, Shardeum can be trusted infrastructure bridging billions of users with regulated capital flows.”
Shetty added that the hardest part is no longer technical. The real barriers are perception and regulation, with too many still equating cryptocurrency to speculation. His answer is to keep building in the open and to anchor Shardeum in real-world payment use cases. Once people begin using it for everyday commerce, he believes the perception will change naturally.
Looking ahead, Shetty sees Shardeum becoming the decentralized financial layer bridging traditional finance with Web3. “Our autoscaling architecture makes us uniquely suited for high-volume use cases, cross-border remittances, merchant settlements, gig economy payouts that many projects can’t handle efficiently,” he said.
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Central to Shardeum’s strategy is its open-source, community-driven development model. The project offers contributors mentorship, LinkedIn recognition, and community accolades to build genuine stakeholder ownership.
“Open-source isn’t just about code, it’s about community ownership,” Shetty said. “By giving contributors mentorship, recognition on platforms like LinkedIn, and community accolades, we’re signaling that builders here aren’t just users, they’re stakeholders.”
This approach creates what Shetty calls a “virtuous cycle” where developers gain credibility, projects gain talent, and the network gains resilience. “That grassroots strength is what sustains Shardeum long after hype cycles fade,” he noted.
Over the next 12 months, three key milestones will define Shardeum’s trajectory. “First, the launch of smart contracts on mainnet, enabling real applications to scale. Second, early Indian-built protocols gained traction, proving Shardeum’s thesis of local-first innovation. Third, our community-driven token events that expand validator participation and ownership,” Shetty outlined.
“Together, these signal not just technical progress, but adoption and wealth creation, which are ultimately the strongest drivers of investor confidence,” he added.
The vision extends beyond technology to societal impact. “Our vision is to make India a crypto superpower,” Shetty said. “Shardeum’s vision is simple: to make blockchain infrastructure open, affordable, and accessible to billions. We’re not just building technology, we’re building a movement where developers can innovate freely, users can participate as owners, and investors can trust in long-term scalability.”
He expanded on that vision, saying Shardeum can serve as the foundation for the next wave of applications that bring real-world impact, from finance to social good. “This is not just about a blockchain, it’s about shaping the next generation of the internet, one that is fairer, more inclusive, and truly global,” he said.
When pressed for a single-line investor pitch, Shetty responded: “Shardeum is the first linearly scalable, low-cost, and truly decentralized Layer 1 built to bring billions of everyday users and transactions on-chain, making it the most inclusive blockchain for long-term adoption.”
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