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Due to its security, transparency, and flexibility in verifying virtual assets, blockchain has been identified as one of the key technologies for Metaverse. Unfortunately, blockchain-based Metaverse faces serious challenges such as massive resource demands, scalability, and security/privacy concerns. To address these issues, this paper proposes a novel sharding-based blockchain framework, namely MetaShard, for Metaverse applications. Particularly, we first develop an effective consensus mechanism, namely Proof-of-Engagement, that can incentivize MUs’ data and computing resource contribution. Moreover, to improve the scalability of MetaShard, we propose an innovative sharding management scheme to maximize the network’s throughput while protecting the shards from 51% attacks. Since the optimization problem is NP-complete, we develop a hybrid approach that decomposes the problem (using the …