BSV Blockchain's Network Topology

Teranode

Teranode is the advanced node software at the core of the BSV blockchain, designed for a distributed network of nodes.

• While blockchain networks can technically run on a laptop, practical applications necessitate more robust computing power to manage high transaction volumes, ergo Teranode.

• The BSV Association revisited Bitcoin's original protocol to develop node software optimized for scalability.

• Key features include:

  • Reintroduction of previously removed features.

  • Activation of all opcodes.

  • A horizontally scalable architecture utilizing microservices.

In July 2025, Teranode was released following extensive testing in private environments.

• Trials involved six nodes operating continuously for 14 days across Europe, the United States, and Asia.

• During these tests, Teranode achieved an impressive average throughput of 1.04 million transactions per second.

• For context, Bitcoin (BTC) processes only 4-7 transactions per second, while Solana can handle 30,000-50,000 transactions, many of which are internal consensus transactions.

• Over the testing period, Teranode successfully processed 1.3 trillion transactions.

This infrastructure is tailored for enterprise-scale applications, including:

• Payment processing.

• Energy management.

• Tokenization.

Documentation and technical resources are available on GitHub for developers interested in exploring Teranode further.

Overlays

Overlays are built on top of the Teranode layer, providing specialized indexing and enhanced functionality.

• They are not classified as "layer two" solutions but offer features such as:

  • Selective disclosure of information.

  • Encryption management.

  • Privacy enhancements.

These overlays are particularly beneficial for organizations, especially within the European Union, as they allow for:

• Controlled management of data sovereignty.

• Utilization of a public blockchain while maintaining privacy and compliance.

The integration of overlays enhances the overall functionality of the BSV blockchain, making it more adaptable to various business needs.

Simplified Payment Verification (SPV)

Simplified Payment Verification (SPV) is a crucial component of the BSV blockchain's architecture.

• SPV allows users to verify transactions without the need to run a full node, aligning with Bitcoin's original vision as a peer-to-peer electronic cash system.

• This mechanism enables lightweight clients to confirm transactions efficiently, making it accessible for users with limited resources.

• SPV supports the decentralized nature of the network by allowing more participants to engage without the overhead of full node operation.

The implementation of SPV contributes to the scalability and usability of the BSV blockchain, ensuring that it remains user-friendly while maintaining robust security features.