# Structure and Functionality of the Ledger

<figure><img src="/files/TVhMDUtQtO4GpMSHy1Dz" alt=""><figcaption></figcaption></figure>

Understanding the structure and functionality of the BSV Ledger is crucial for grasping how it operates. The ledger is characterized as a **WORM database**—**Write Once, Read Many**—which means that once data is recorded, it cannot be altered without leaving evidence of tampering. This property ensures that the ledger is **tamper-evident**, as any attempts to modify the data will be visible and traceable.

**Nodes in the BSV network** maintain the authoritative ledger. They receive transactions and write them to blocks.

[**Overlay services** ](https://bsvblockchain.360learning.com/course/play/6900be15b988fc5078a74c1c)now handle most transaction submission and validation. These specialized services sit between users and nodes. They **validate transactions using SPV** before forwarding them to the node network.

**Traditional mempools** stored all pending transactions globally. This model doesn't scale at high volumes.

**Overlay architecture replaces global mempools** with distributed, specialized transaction pools. Each overlay maintains its own pool of **relevant transactions** for its specific use case.

![](//img.youtube.com/vi/ho1N7w_cD2Y/hqdefault.jpg)

**Users submit transactions directly to overlays**, not to a global mempool. The overlay validates the transaction. Then it **submits valid transactions to nodes** for block inclusion.

**Overlays track transaction propagation status**. They provide feedback to users about confirmation. This replaces the mempool's monitoring function.

**Different overlays may hold different transactions**. They serve different applications and business needs. This **distributes the computational burden** across many services.

**Nodes must still reach consensus** on the ledger state. The blockchain itself remains the single source of truth. **SPV ensures data integrity** between overlays and the blockchain.

This **shift from global listening to targeted services** enables massive scalability. Businesses select and pay for only the overlay services they need.


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