# Functionality and Technical Architecture
Overlay services encompass several critical functions that contribute to their overall effectiveness:
1. **Ingest and Validate**: Overlays ingest and validate transactions using SPV, ensuring that only valid transactions are processed.
2. **Maintain Chain State**: They maintain the valid chain of headers, ensuring synchronization with the blockchain's current state.
3. **Submit Transactions**: Overlays submit valid transactions to the BSV Node Network for inclusion in blocks.
4. **Track Propagation**: They monitor transaction propagation status, providing users with feedback regarding transaction confirmation.
5. **Merkle Path Distribution**: Overlays acquire and distribute Merkle paths for mined transactions, facilitating SPV verification.
6. **Peer Synchronization**: They synchronize with peer overlay nodes to ensure data consistency and availability.
7. **UTXO and Transaction Lookups**: Overlays may expose UTXO and transaction lookup services tailored to specific use cases.
The technical architecture of overlay services consists of several interrelated components:
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