Dragonshards, originally came from the Ebberon campaign setting. On Aerth, Dragonshards are a naturally occurring phenomenon. Unlike their origins within Ebberon, on Aerth, Dragonshards are simply the natural result of gems and minerals exposed to prolonged magical essence. This can either occur in nature, usually at the site of a high magic area, or artificially, through prolonged intentional exposure. No matter the method of creation, there is no difference in their function.
Siberys Shards are primarily utilized to enhance psionic and innate magical abilities. In addition to their normal functions, Channeling Rods can be used to apply metamagic abilities to natural spell-like abilities of the wielder, not just Dragonmark abilities. It is because of this unique enhancement that they are so prized, especially by the naturally psionic races. Naturally occurring Siberys shards are rare, but artificial shards can be created over a period of one month. To craft a Siberys shard, an individual must channel 3 power points worth of psychic energy into the crystal every day for one month. These points are spent just as if they were used to manifest a power, but the energy is transferred into the crystal. There is no limit to the number of crystals an individual can craft at once, as long as they have a sufficient power point reserve. Once the process has begun, only the original crafter can continue the process of imbuing a shard.
Khyber Shards are utilized in the binding of elementals. Most Khyber shards are formed on the elemental planes and brought to Aerth. Khyber shards crafted on Aerth are simply normal gems which have, over time, been exposed to extreme elemental conditions. These conditions must be maintained for no less than one week, though a process of slow forming has been rumored, but it is said to take as much as a whole year of conditioning.
Ebberon Shards are the most common type of Dragonshard, and are simply referred to as Dragonshards. These are gems which have become attuned to the magical energies of the world, usually through prolonged exposure to low level background magics. Most originate deep within the Underdark, where low level magical radiation is a natural occurrence. While recipes for crafting Dragonshards exist, they are common enough that most crafters simply acquire naturally occuring shards. Dragonshards are the key material component in Weapon and Armor augment crystals, and supplying one cuts 25% off of the cost to create.