A node is, simply put, a computer connected to a blockchain network that stores, validates and distributes data across the network. Each node keeps a complete copy of the blockchain ledger, which means that all nodes work together to ensure transparency, security and decentralization of the network.
Node types
There are several types of nodes, depending on their specific functions:
- Full Nodes: These store a full copy of the blockchain and participate in transaction validation. They are the backbone of security and decentralization.
- Light Nodes/SPV: These do not store the entire blockchain, but only a subset (e.g. block headers) and are less resource intensive. They rely on full nodes to verify transactions.
- Mining Nodes/Validator Nodes: In addition to the basic functions, these nodes (in Proof-of-Work or Proof-of-Stake networks) actively participate in the process of creating and adding new blocks to the blockchain, and are rewarded for doing so.
- Masternodes: As discussed, these are special nodes that require financial collateral and provide advanced services to the network.
How a node works
When you make a cryptocurrency transaction, information is sent to the blockchain network. Nodes play several important roles:
- Transaction storage: each node keeps a record of all transactions in the network.
- Validating transactions: The nodes verify that a transaction fulfills the rules of the blockchain (for example, whether the recipient has sufficient funds).
- Information transmission: Nodes distribute transactions to other nodes in the network, ensuring that all pieces of information are up-to-date.
For example, if you send bitcoin to a friend, nodes will validate the transaction and add it to the blockchain only if all conditions are met.
Benefits of using nodes in blockchain
Nodes are essential for the proper functioning of a blockchain network. Here are some reasons why they are fundamental:
- Complete decentralization
Unlike traditional banking, blockchain does not depend on a central entity. Nodes work together to maintain the transparency and independence of the network.
- Increased security
To manipulate data, an attacker would need to control over 51% of the nodes, which is extremely difficult.
- Transparency
Anyone can verify transactions and data stored in the blockchain by accessing a full node. This level of transparency is one of the strengths of blockchain technology.
- Resistance to censorship
Nodes prevent governments or companies from controlling or restricting the network. Through decentralization, blockchain becomes a democratic alternative to traditional financial systems.
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