Integrating blockchain technology into the Metaverse presents valuable opportunities to enhance virtual ecosystems’ security, scalability, and transparency. However, its adoption is challenged by issues like high resource requirements, scalability limitations, and security concerns. This paper introduces MetaShard, is an innovative Segmentation-based blockchain framework tailored for Cyberspace applications. MetaShard leverages a Proof-of-Engagement (PoE) consensus model, incentivizing users to contribute resources, fostering community involvement, and reducing resource strain. The framework also includes an advanced sharding management system that addresses an NP-complete optimization challenge for shard allocation. To solve this, it employs a hybrid approach combining binary search and the Lagrangian method, achieving efficient shard reconfiguration with minimal computational cost. Simulations reveal that MetaShard outperforms existing solutions, offering up to 66.6% higher throughput while maintaining strong security. This framework provides a scalable and secure blockchain infrastructure, enabling further advancements in the Metaverse.