What is a blockchain Node?
CONTENTS:
In an era where digital innovation is reshaping our world, have you ever wondered what powers the engine of blockchain technology, making it the powerhouse of security and transparency? It’s none other than ‘blockchain nodes’ that pump life into the veins of blockchain networks.
A node in a blockchain is, in fact, a computer, which can be connected to any blockchain network and is part of the verification and relaying of the transactions. These nodes are the backbone of networks, as they maintain the security of the blockchain, which is watched over to make sure that it is safe from any tampering. These nodes are the gateway towards a transparent digital world where trust and security are prioritised.
So without further ado, let’s discuss types, process, impact, challenges AND opportunity of blockchain nodes…
THE TYPES OF NODES:
In the blockchain world, there are a few different nodes that each play their own role. Here’s a few of them here:
Types of Nodes: |
Functions: |
Full Nodes | Keep a complete history of all transactions, storing the entire blockchain to verify or reject transactions based on consensus rules & protocols |
Light Nodes | Do not download the entire blockchain; they rely on full nodes for info & suitable for devices with limited storage. |
Mining Nodes | A group of full nodes that add new transactions to the blockchain through mining, solving puzzles to validate transactions and create new blocks. |
Validator Nodes | Responsible for validating transactions. Selected based on the amount of cryptocurrency they hold and are willing to ‘stake’ as security. |
SO HOW EXACTLY DO THEY OPERATE?
At the core of the blockchain’s innovative technology is a huge communication network consisting of a huge number of nodes operating in a complex form. Each node is responsible for checking transactions for validity and sending them to other similar nodes connected to them through a peer-to-peer (P2P) network. This decentralised network architecture means that every node is NOT a single point of attack, so the blockchain reliability and security is improved.
Let’s say a new transaction is made and it is transmitted to the network. Nodes at this stage, take this transaction and check it up against the blockchain’s previous history, preventing fraudulent activities including double spending.
This verification procedure is of GREAT importance, as you can probably guess. When a deal is verified by a node, it is integrated into the blockchain through the formation of small blocks, where the recently verified transactions accumulate. Now is where consensus mechanisms are used – they are rules that nodes apply to decide on transactions in the blockchain. The 2 primary mechanisms are Proof of Work (PoW) and Proof of Stake (PoS). Let me explain…
– Proof of Work (PoW): Currently used by Bitcoin, a proof-of-work mechanism requires nodes to solve complex cryptographic puzzles. The first miner to complete the puzzle will be allowed to tag a new block to the existing blockchain while duly rewarded. Bear in mind, this process requires EXTREME computational power.
– Proof of Stake (PoS): Being more ‘energy-efficient’, PoS selects the next block to be validated based on the number of coins that the node holds and is willing to ‘stake’ or ‘lock’ as security. This mechanism ensures that those who invest into the network don’t act in a hostile manner, since they have more to lose. So this would in-turn improve the security of the network.
IT ISN’T AS SIMPLE AS YOU MAY THINK:
Maintaining a node on blockchain comes with its own unique difficulties that are both technical and financial. To begin with, keeping a node running has 2 prerequisites:
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- An EXTREMELY powerful hardware. And you could’ve guessed that this would be quite expensive, especially for nodes like full nodes that store ENTIRE blockchains!
- A solid internet connection that comes with a hefty electricity bill. Continuously operating 24 hours a day boosts energy consumption and thus makes it a cost factor to be taken into account.
Along with the finance side of things, you also need to have SOME skills. Operating and maintaining a node means that you will be responsible for things such as keeping it safe from digital threats, making sure that it’s running well, and updating the software. It’s an effort that requires a good deal of technical expertise. These people are the unsung heroes of the blockchain world. By taking on these challenges, they contribute hugely towards sustaining the network.
Consequently, having a node running could be a HEAVY responsibility, but it is also vital to its functioning. These operators are not dressed as peasants, but the pillars of blockchain, strengthening it day by day so it’s always functioning well.
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