BSV Blockchain is introducing its mandala upgrade to adapt the BSV network topology to its scalable node software update Teranode. The Mandala concept to the BSV blockchain doesn’t change the core rules of the system. Instead, it introduces new components that make the system more efficient and aligned with the Bitcoin whitepaper. By validating transactions through peer-to-peer methods using Merkle proofs, we ensure data is passed smoothly to Teranode. This optimization improves how software handles transactions without altering the fundamental protocol. Transactions are validated P2P at the edge, managed through overlays in the middle, and processed by Teranode at the center.
This architecture draws inspiration from its namesake, the traditional Mandala, symbolising unity and complexity through its intricate, interconnected patterns. Mandala Networks have been shown to be the best way to design available, scalable and resilient distributed systems. This design is not just a nod to aesthetic elegance; it represents a strategic blueprint to evolve blockchain technology by enhancing connectivity, scalability, and operational efficiency within the network.
Overview of the BSV blockchain Mandala
At the core of the Mandala architecture is the “Ultra Small World Network.” This network is engineered for rapid and complete dissemination of time critical data. Surrounding this core are various “Overlay Networks,” each dedicated to defined applications or use cases. These overlays extend the network’s functionality, enabling it to support a broad range of business needs without overburdening the core’s performance. Peer to peer transactions are validated at the edge of the network through the reference implementation of the Simplified Payment Verification (SPV) process demonstrated in SPV Wallet.
Blockchain as a WORM Database
Blockchain inherently serves as a Write Once, Read Many (WORM) database, ideal for storing data permanently without alteration, thus ensuring high security and immutability. This feature is crucial for systems where data integrity is paramount. However, traditional blockchain architectures are not optimised for high-frequency, complex data retrieval tasks required in scenarios like real-time analytics, limiting their utility in dynamic business environments.
Components of the Mandala Upgrade
- Ultra Small World core node network:
The Small World Network Core is crucial for maintaining the network’s efficiency and speed, enabling rapid transaction processing with minimal delay. A pivotal enhancement within this core is Teranode, a new node implementation featuring a modular microservice architecture designed to support millions of transactions per second. This represents a significant advancement over previous implementations, which topped out in the order of a few 1000 tps. - Overlay Networks:
Positioned above the core, the Overlay Networks form a layer which consists of multiple dedicated services for distinct types of transactions, such as those involving digital currencies, archival services, or complex financial instruments. Each overlay operates independently but is aligned with the specific business logic of its designated function, ensuring that the core network remains streamlined and operates at peak efficiency. - SPV Implementation:
The SPV (Simplified Payment Verification) process, showcased in the BSV open-source reference implementation wallet SPV Wallet, is key to the Mandala architecture. SPV Wallet is the first implementation of this process in a reference wallet. It uses Merkle path authentication to perform proofs, ensuring that each peer-to-peer transaction passes a Merkle path for all committed spendable transaction outputs. This approach allows for efficient and secure transaction validation at the edge of the network.
Strategic Need for a New Architecture aligned with the Teranode era
The introduction of Teranode necessitated a fundamental maturation in network architecture to harness its full potential. Teranode, with its capability for massive scalability and handling millions of transactions per second, is not just a step up from previous implementations—it’s a paradigm shift. However, this leap comes with specific requirements: Old services will struggle to cope with millions of transactions per second. The work needs to be distributed across many specialised services rather than processing all transactions in a single service.
To fully realise Teranode’s capabilities, it requires the Mandala topology—a more advanced and strategically designed network structure. The Mandala topology, with its Ultra Small World node core network surrounded by specialised Overlay Networks, distributes the read load to accommodate the high throughput and rapid scalability that Teranode offers. This topology ensures that Teranode does not just operate but excels, making the BSV network vastly more efficient and scalable.
This new architecture also involves the SPV Wallet, the BSV open-source reference implementation wallet which has been developed to ensure that all applications interacting with the blockchain can create transactions under the new SPV paradigm. This adaptation is crucial for maintaining compatibility and scalability, preparing the network to meet future demands and integrations effectively. The strategic redesign to accommodate Teranode underlines a commitment to future-proofing the BSV network, ensuring it remains at the forefront of blockchain technology innovation.
Key Points of the Overlay Networks
- Shared Contexts and Efficient Resource Utilisation: Overlay Networks in the Mandala architecture are designed to foster a shared contextual environment where different applications can access and interact with blockchain data more efficiently. By utilising Simplified Payment Verification (SPV), these networks significantly reduce resource waste by ensuring that only necessary data is processed and validated, rather than engaging in costly and inefficient global listening practices.
- Specialised indexing: In a network designed to handle up to a million transactions per second, maintaining efficiency and scalability is paramount. The traditional model of global listening, where every node listens to every transaction, becomes untenable at such scales. Overlay Networks address this by allowing nodes to focus only on relevant transactions, thus minimising unnecessary data processing and enhancing overall network performance.
- SPV and Transaction Efficiency: SPV plays a crucial role in the Overlay Network paradigm by validating transactions without the need for complete chain data at the application layer. This method ensures that data integrity and transaction verification are maintained efficiently, aligning with the network’s need to support vast transaction volumes without compromising on speed or security.
- Operational Specialisation: The architectural design of Overlay Networks supports specialisation in transaction processing. Each Overlay is tailored to specific transaction types or business functions, ensuring that the underlying blockchain infrastructure is not overwhelmed by the variety of operations it needs to support. This specialisation not only enhances transaction processing efficiency but also improves the scalability of the network.
- Integration and Flexibility: Overlay Networks are integrated with the core blockchain infrastructure yet maintain a high degree of operational flexibility. This setup allows for the efficient management of diverse transaction types, ranging from simple transfers to complex contractual agreements, all while maintaining the integrity and security expected of blockchain technology.
- Strategic Data Management: Data within Overlay Networks is managed smartly to help businesses get the information they need quickly and safely. Since blockchain is great at handling lots of data without slowing down, Overlay Networks make sure that businesses can use this data without waiting too long. They do this by keeping only unique data, storing data close to where it’s needed, and using smart ways to find the data.
- Permissioned Capabilities on a Permissionless Blockchain: Overlay Networks also enable the implementation of permissioned capabilities within a permissionless blockchain. This means that while the BSV blockchain remains open and accessible to everyone, certain applications and transactions can be managed with specific permissions, enhancing security and control for businesses and specialized use cases. This flexibility allows the BSV network to cater to a wide range of requirements, balancing openness with the need for customized access control.
By integrating these capabilities, the BSV Mandala Upgrade allows businesses to leverage the blockchain for enhanced data security and immutability while maintaining flexibility and efficiency in data operations. This strategic development allows real scalability at the layer 1 level while offering the flexibility typically found in layer 2 solutions. It brings permissioned capabilities to a permissionless ledger, offering sophisticated solutions without compromising security.
