# Future Outlook

<figure><img src="/files/pE5ec4nMn2CbFxnqTdg0" alt=""><figcaption></figcaption></figure>

The future of overlay networks is poised for **advancements in scalability, security, and regulatory compliance**, positioning BSV as a leading platform across various industries. As transaction volumes increase with the introduction of **Teranode**, overlay services will become increasingly critical.

A **scaled Merkle Service** is anticipated to replace ARC's microservice BlockTx, as Teranode blocks are expected to exceed the current 4GB limit. **Teranode will announce Merkle subtrees while constructing its own block**, allowing for early work initiation and efficient propagation upon block discovery, thereby **distributing computational effort throughout the block assembly process.**

Overlay services on the BSV blockchain provide **a robust mechanism for managing specialized business logic, data storage, and transaction processing**, enabling businesses to develop sophisticated applications that **leverage the immutability and transparency** of blockchain technology while **maintaining the flexibility and efficiency required for real-world operations.**


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