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What Are Nodes? - Bitcoin Nodes

BitForex Editor
Oct 15, 2020

A node is a general term used to describe a certain point where messages can be created, received, and distributed. There are different contexts for which nodes are being used for but in this wise, we will be talking about the network node.

Bitcoin Node

The concept of Bitcoin has given many the power to own and control their finances, being in full capacity of what their finances are meant for and how it is used without the interference of a third party or governmental authorities. The power given to users of Bitcoin is one of the advantages the cryptocurrency has over fiat money, enabling a peer to peer environment such that a user can carry out transactions and be in full control of their money. Asides from that, Bitcoin also allows anyone who has the requirements which are; a computer, a bandwidth, and power, to participate in the network by influencing the market as they feel it should. A bigger and better way of doing this is to set up a node.

A Bitcoin node is a network made of thousands of computers scattered across different parts of the world to ensure the absolute decentralization of Bitcoin. These computers distributed around the world run the Bitcoin core software and they are what validates and confirms the success of a transaction.

Duties Of A Bitcoin Node

As a computer connected to other computers to run the Bitcoin program, the node has three duties which are:

To Follow Rules

There are some sets of rules which the nodes have to follow on the network. These rules enable the node to check through the transactions it is receiving and then pass them on only if the transactions are valid. In situations where the transaction isn't valid, such isn't passed.

To Share Information

Now when a transaction is entered into a node, the node is expected to share the information of the transaction with other nodes. The most important duty of a node is to share information and the information is mostly that of a transaction. The node shares two different types of transactions; the first is the information of fresh transactions and the second is the information about confirmed transactions.

To Keep A Copy Of Confirmed Transaction

The last duty of a node is to make sure a copy of a successful transaction is being kept after it was shared with the other computers. Transactions that are freshly entered hang around the network until they are confirmed and safely kept. Every kept transaction is held together in the blockchain file.

Things To Know Before Setting Up A Node

Before you decide to set up a node, there are some costs you must consider to be sure if you really want to run a node. They are:

Securing Your Wallet

For you to be running a node, you have to store your bitcoins with the use of Bitcoin core wallet. Yet, you still have to remain careful to ensure your bitcoins are best secured.

Minimum Requirements To Run A Node

Although, you can run your node on weaker hardware, available to you the truth is that you won't enjoy it for long as you'll have to solve an issue today, face another tomorrow. When running a Bitcoin node, you need the best experience, and here are the minimum requirements needed.

1.A broadband connection that had up to 50 kilobytes speed per second.

2.A 2gb RAM

3.A new version of Windows, Mac OS

4.A storage space with a minimum of 350gb

5.Time so you can stay up to at least six hours to run the node

Possible Issues

Running a node isn't as easy as it sounds. There are times when you'll be faced with different issues so it is proper for you to anticipate such issues. These problems include;

1.Target Of Attack: Running a Bitcoin node is a way of helping to secure the network and as a result, you are subject to attack by those who want to compromise the network.

2.Bandwidth Limits: Not all internet plans have the capacity to run a node for hours. Some have limits on the number of uploads so you first have to confirm if your service provider has a plan that supports.

3.Legal: It is important to note that Bitcoin isn't acceptable, used, or allowed in some parts of the world. Check the rules of your jurisdiction on Bitcoin matters.

How To Set Up A Node

Here is a list of what to do when you want to set up a node.

Set Up A Node In The Cloud

This has to do with you setting up an account with any of the hosting services like Google Cloud or Amazon Web Services then you create a virtual machine. After that, you have to configure your firewall rules so as to make sure that it is impossible to breach your virtual machine instance. Next is to download the Bitcoin core and configure the port settings.

Set Up A Node On Your Machine

This is like setting up a node on the cloud just that you will need at least a 1.5gb of disk ram and a 2gb of RAM.

Node-in-a-box

This method involves the setting up of a pre-configured full node that could be connected to your machine.

Types Of Bitcoin Nodes

There are different types of bitcoin nodes, let's take a look at some of them

Full Nodes

These nodes are essential to the Bitcoin network because they provide security and full support to the network. Full nodes also validate blocks and transactions.

Supernodes

Also called a listening node are full nodes whose visibility is made public. When a different node establishes communication, supernodes are able to provide information.

Miners Nodes

When there is a need to mine bitcoins, it is important that one has to specialize in mining hardware.

Conclusion

In summary, we've taken a look at what a Bitcoin node is and its duties. We also exposed you to the things you have to know before setting up a node, then we looked at how to set up a node and lastly, the types of Bitcoin nodes.

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