# Microservices Architecture
At the core of Teranode's innovative design is its **microservices architecture**, which fundamentally alters how blockchain nodes operate. Unlike traditional nodes that process transactions sequentially, Teranode's architecture allows for the parallelization of processes, enabling it to manage a significantly larger volume of transactions simultaneously. This is achieved by decomposing the node's functionalities into distinct services that can be independently scaled.
This architecture allows for horizontal scaling, meaning that as demand increases, additional servers can be deployed to enhance capacity. Each new server contributes approximately **90%** of the capacity of the previous one, resulting in a highly efficient scaling model that can adapt to varying transaction loads.
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