“BSV’s competitive advantage is micropayments.” And since the original whitepaper says “small casual payments” is right there, this has always been Bitcoin’s competitive advantage. It was supposed to be there.
Jake Jones, head of infrastructure at the BSV Association, spoke about the Teranode protocol upgrade at the recent sCrypt Hackathon 2024 in San Francisco.
Teranode will replace the current BitcoinSV Node protocol software and enable true unlimited scaling on the network, allowing transactions of any size to be processed at millions (or more) per second. Transactions continue to follow BSV’s “fixed” protocol rules.
The entire morning session of Day 2 can be viewed at this link. You can watch the entire two-day sCrypt Hackathon 2024 presentation series on the CoinGeek YouTube channel. Most of the presentation will introduce the basic features of blockchain, then delve into more technical details about how sCrypt’s TypeScript-based environment makes it easy for developers to turn their visions into working products. .
Teranode, validation layers, and subtrees
Jones first pointed out that micropayments are the result of unlimited expansion, specialization, and P2P communication. At the moment, the network has only two tiers: miners and users. There is no overlay network layer (for data search and retrieval) and there are still limited P2P connections.
Teranode will form the core of the “Blockchain Mandala” network, with additional layers allowing opportunities for entrepreneurs and developers to build specialized layers such as overlays, SPVs, and other messaging services. Jones presents several technical diagrams and flowcharts that illustrate his network architecture and how it processes transactional data.
The version of Teranode currently being tested can handle Merkle trees with up to 1 million subtrees. These subtrees are made up of transaction header hashes that can all be traced back to the original verified block hash, so the service can verify that past transactions are valid by checking whether the hash is present in the subtree. You can check whether You don’t need to check all the data in the transaction, only the validity of the headers.
These subtrees are checked every second. “And therein lies the true innovation of Teranode.”
That’s because “we take a proactive approach,” Jones says. Rather than waiting for a block to be found and then validating every block once it is found, the network validates continuously as it goes along. Nodes already have the information they need when a new transaction completes. The subtree approach, further enhanced by Teranode’s enhanced transaction format, enables parallel processing of transactions. This is a key component of BSV’s network optimization (and maintaining low usage fees).
ARC and overlays
“ARC” is the transaction processor of the BSV blockchain and is itself an overlay that enables direct communication between the edge of the network and its center. This includes several microservices such as the ARC API, Metamorph, BlockTX, and Callbacker, all of which can determine whether a transaction has been “received” by the network before it is actually validated. Masu.
Jones defines an overlay as a layer of information that enhances and extends the underlying network (the actual transaction block) by providing new insights into that information. Examples include services such as transaction lookup, token management, and open predicates. “Transaction types or transactions he manages things based on templates,” he says, allowing the application to check only the transactions that are relevant to it, ignoring other transactions.
Most overlay services still exist only conceptually, and developers must build them. More sophisticated than end-user apps, these developers require a more thorough knowledge of the Bitcoin network and how it works, but the effort can be worthwhile if given the opportunity.
If you’re a developer and you find sCrypt’s event presentations interesting, check out other sCrypt hackathon sessions or see sCrypt’s work. If you missed out on attending sCrypt Hackathon 2024, his sCrypt website is always open as a resource for people to learn more.
Watch: Teranode is the future of the Bitcoin network
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