# Mandala Upgrade

The Mandala Upgrade is a significant advancement in the blockchain network, enhancing scalability, cost-efficiency, and overall performance. This upgrade primarily focuses on improving the Bitcoin SV (BSV) network, making it more robust and suitable for enterprise solutions.

## Key Components

### Teranode

This core node network is crucial for delivering efficiency, security, and ultra high throughput.

### Overlay Services

These services expand network scalability and performance, catering to various applications like digital currencies and data services.

### Applications

Built on a foundation of SPV, enabling p2p edge validation, and integration with the blockchain.

## The Blockchain Mandala Concept

<figure><img src="https://2147185133-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWtK4ab0ntyPZBmGoKq4t%2Fuploads%2Fgit-blob-20bb851fbf434e66c84b15ecb90efee017d23256%2Fimage.png?alt=media" alt=""><figcaption><p>Mandala</p></figcaption></figure>

### Ultra-Small-World Network

A highly connected, layered network designed to be fast, cost-effective, and resilient against failures and attacks.

### High Scalability and Performance

The network architecture supports vast transaction volumes at high speed, essential for enterprise-level applications.

## Current Network Limitations

The existing blockchain network faces several challenges:

• Limited Layers: Only two layers (mining nodes and applications) restrict specialization and scaling.

• Peer-to-Peer Connectivity: Limited due to lack of adoption of SPV, and reliance on non-mining nodes.

• Node Software Limitations: Performance varies based on hardware and settings.

• Resource Drain: Non-mining nodes consume resources without contributing to the network.\\

## Mandala Upgrade Solutions

The Mandala Upgrade addresses these limitations by introducing a three-layer network architecture:

1\. Teranode Layer: Ensures high-speed processing, massive scale.

2\. Overlay Service Layer: Facilitates specialization and efficient handling of business logic.

3\. Application Layer: Enhances privacy and functionality with p2p communication and validation.