Bitcoin Nodes 101 🤓
💡 Daily Reminder: Stay humble, stack sats
Bitcoiners,
Nodes are a critical part of the Bitcoin protocol.
Here is an overview of Bitcoin nodes for beginners so that you can understand how they are a crucial aspect of the network and run one yourself.
What is a node?
A full node validates transactions and blocks and accepts transactions and blocks from other full nodes to support the Bitcoin network.
In traditional payments, centralized entities such as banks communicate to reach consensus whereas full nodes run the Bitcoin Core software synchronously to reach consensus in a decentralized fashion. A full node holds all the information in the Bitcoin blockchain dating back to 2009 when it was first released. Nodes are also used as wallets to eliminate any 3rd parties from broadcasting transactions.
Types of nodes
There are 3 main types of nodes:
Full Node - download the full Bitcoin blockchain and thoroughly verify that all of the rules of the Bitcoin protocol are adhered to.
Light Node - only download the block header in order to be used as wallets and connect to full nodes.
Mining Node - consists of specialized hardware used to propose new blocks to the Bitcoin network.
How to run a full node
Bitcoin is decentralized, which means anyone can run a full node and validate transactions themselves.
You can run a full node on any spare laptop or parts that cost under $100. To run a full node, download the Bitcoin Core software and run the Initial Block Download. Configure your network to allow both inbound and outbound connections to other nodes in order to support the network.
Happy Saturday,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter: @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.
