What are Blockchain Nodes?
Blockchain nodes are an important component of a blockchain network. A node is a computer or device that connects to a network and participates in ordering, verifying, and validating transactions. Essentially, nodes help to ensure that the blockchain is a secure and reliable record of all transactions that have occurred on the network.
There are several types of blockchain nodes that can exist on a blockchain network, each with specific roles and responsibilities. Some nodes are responsible for storing a copy of the entire blockchain and validating transactions using blockchain consensus rules. Others are responsible for verifying and adding new transactions to the blockchain. Others are specialized nodes configured to handle more complex tasks on the blockchain, such as running smart contracts or serving as trusted intermediaries for certain transactions.
Regardless of their specific role, all blockchain nodes work together to ensure the integrity and security of the blockchain. They communicate with each other, exchange information regarding new transactions and blocks, and use blockchain consensus rules to validate these transactions and add them to the blockchain.
This article answers a very important question: what are blockchain nodes, and what do they do? Let's discuss it.
What is the Importance of Blockchain Nodes?
Source: Freepik
The rise in popularity of blockchain technology over the past few years and its widespread adoption across industries such as supply chain, healthcare, energy, etc. will only continue as the technology advances. Therefore, it is important to understand the core infrastructure and architecture behind blockchain technology to understand the dynamics and utility that make it superior to traditional technologies.
Nodes are the backbone of blockchain infrastructure. The main goal is to increase data security on the blockchain and prove credibility on the network. There are thousands of nodes in the blockchain network ensuring decentralization, immutability, and traceability. Nodes help provide reliability by keeping records of all blockchain transactions. Additionally, nodes can also protect the blockchain from centralized attacks because there is no single point of failure in the blockchain network. Each node has a copy of the blockchain database and uses it to verify transactions and add them to the blockchain as blocks. Thus, the wider the network of nodes, the more trustworthy a blockchain.
Nodes have a wide range of uses in blockchain, from ordering, organizing and recording blockchain transactions to rejecting and storing data and maintaining consensus algorithms. Additionally, nodes are also responsible for determining whether a transaction block or signature is valid or not and then accepting or rejecting it to keep the network running smoothly.
How Do Blockchain Nodes Work?
Source: RS online | a visual explanation of what a node is in a blockchain in three types of systems
Now that we have discussed what blockchain nodes are, it is also important to understand how nodes work. To do that, we first have to go back to blockchain and understand its function. A blockchain is an immutable shared ledger where each block is cryptographically connected to the next block, where changes to one part of the blockchain will cause all subsequent blocks to undergo changes. However, they exist on a distributed network and have many copies, which means they cannot change.
Nodes are unique in the sense that each can be distinguished from the others by certain characteristics or features. They can have different functions depending on what the application is. Typically, a node is said to keep a record of blockchain transactions, as discussed above, but this is not a function for all nodes. What the nodes do depends on the overall requirements of the blockchain. Each node plays a different role in the blockchain ecosystem, along with the standard tasks of managing transactions, sharing data with other nodes to develop the network, and implementing algorithms to keep the entire network updated and functioning.
There is also a special type of blockchain node known as an RPC node that is configured to handle more complex tasks on the blockchain, such as fetching smart contract transactions or serving as a trusted intermediary for certain transactions. These nodes generally have significant computing power and resources and are often operated by large organizations.
Different Types of Blockchain Nodes
Source: Freepik
The different types of blockchain nodes and their functions for the different blockchain layers is a very important part of understanding what a blockchain node is.
1. Node Full
Source: Freepik
A full node stores the entire blockchain, allowing it to fully validate transactions and blocks against the network's consensus rules. Additionally, full nodes play a critical role in disseminating this data across the network, ensuring timely and efficient distribution of new transactions and blocks. However, full nodes usually do not recommend new blocks for inclusion in the blockchain. By running a full node, participants can independently and authoritatively verify every transaction in the blockchain history without relying on external references. This independence ensures that the network remains decentralized and resistant to malicious actors or single points of failure. Ethereum's Geth is a popular client and software implementation for running full nodes.
Full nodes, furthermore, play an important role in blockchain network governance. When a protocol change or update is proposed, the full node's choice to adopt or ignore this change becomes a strong consensus signal. By choosing to update their software in response to these proposals, full nodes effectively voice their stance, shaping the direction of the network's evolution. Their role is not simply passive; Full nodes actively enforce network rules. If the majority chooses to adopt the change while others do not, the latter may find themselves on an incompatible chain, illustrating the important role of nodes in realizing governance decisions.
2. Archive or Archive Node
In contrast, an archive node is a special form of a full node that goes further in its data storage. In addition to storing the complete blockchain, an archive node meticulously stores the entire history of the network, capturing every transition state between blocks. This means that for every action, be it a transaction, contract execution, or any other activity, the archive node captures and stores the resulting changes. This is akin to having a snapshot of every moment in blockchain history, allowing developers to rewind and examine each moment of interest.
For projects that require deep diving into historical data, or to debug complex smart contracts, archive nodes are an indispensable tool. However, this depth of information comes at a cost, as the storage requirements for archive nodes far exceed those of typical full nodes, requiring substantial infrastructure and investment to maintain them effectively. Again, anyone can run an archive node on the chain without permission.
3. Node Validator
Unlike traditional full nodes that validate and forward transactions, validator nodes (also referred to as staking nodes in some networks) take a more active role in the block creation process. They are selected, based on various criteria such as the amount of real currency staked, reputation, or other factors, to validate and add new blocks to the chain. By proposing or validating new blocks, these nodes help reach consensus on the next state of the blockchain. In a blockchain network like Shardeum, validator nodes have diverse roles. When it is their turn, they validate, reach consensus, and process transactions in a leaderless manner. Once these transactions are validated, the network will combine them into groups or blocks. This consolidated group of transactions is then forwarded to archive nodes in the network for comprehensive storage and historical recording.
All of the above is based on the assumption that validators act honestly. If they engage in malicious activity or incorrectly validate transactions/blocks, they will face strict penalties, often referred to as “garnishment”, which can lead to confiscation of the assets they staked. Thus, validator nodes represent a blend of trust and authority within a given blockchain ecosystem, ensuring network integrity while encouraging decentralization.
4. Node RPC
RPC nodes, or Remote Procedure Call nodes, serve as critical access points in a blockchain network. These nodes facilitate external interactions with the blockchain by processing requests and performing specified functions. Developers, applications, and other network participants communicate with RPC nodes to retrieve data, send transactions, or query network status. These nodes interpret and convey these external requests to the blockchain and then return appropriate responses. While not directly involved in consensus or block validation, RPC nodes play an important role in bridging the gap between external entities and the underlying blockchain infrastructure, making the network more accessible and usable for a wide variety of applications and services. Their presence underscores the importance of accessibility and user-friendliness in advancing blockchain adoption.
5. Full Pruned Nodes
Pruned nodes, in their core functionality, are very similar to full nodes, but they adopt a more efficient approach in terms of storage. Rather than maintaining the entire blockchain, pruned nodes prioritize the newest blocks, discarding older data to stay within a specified storage threshold. Initially, a pruned node will download the blockchain, but as it operates, it systematically discards older blocks, ensuring only the newest data that aligns with the set storage parameters is retained. For example, if an operator allocates 550MB to a pruned node, it will retain the most recent blocks that fit this constraint, and prune older data if necessary. Despite the leaner storage methodology, pruned nodes retain the full node's ability to authenticate transactions and take part in consensus procedures.
6. Authority Node
An authority node is a node chosen by the organization or community responsible for the blockchain. They are used to authorize new nodes to join the blockchain network. They can also set other nodes' access permissions if they want to reach certain data channels. Consensus algorithms that are not fully decentralized, such as Delegated Proof of Stake and Proof of Authority, use authority nodes. Consensus algorithms like this require a fixed number of authority nodes to function. The number of authority nodes and who will be the authority nodes are usually chosen by the community or determined by the development team. Other participants in the network will run light nodes, which rely on information broadcast by authority nodes to operate on the blockchain. Authority nodes add a degree of centralization to the network to increase speed, but they also introduce the possibility of centralized control.
7. Miner Node
A mining node (or miner) is a node specifically designed to carry out the mining process. With Proof-of-Work, for example, the first miner to solve a computer puzzle receives the right to confirm a block of transactions. Mining nodes use high-performance computing systems that include CPUs, GPUs, or ASICs to solve puzzles, allowing them to add new blocks to the blockchain. A mining node can consist of a single miner or a pool of miners.
Miners are one of the different types of nodes in a blockchain (either full or light) that attempt to prove that they have completed the necessary work (puzzle) to create a new block in the blockchain. Once miners solve a puzzle, they broadcast the solution to the network for verification by the full node. If consensus is reached, miners are given the right to add new blocks to the blockchain and are rewarded with a predetermined amount of digital currency coins, as well as transaction fees associated with those blocks.
8. Node Utama
The master node is a full node responsible for maintaining the blockchain ledger and validating transactions. However, they cannot add new blocks to the blockchain. In general, master nodes are more powerful than regular nodes. Depending on the nature of the event, the master node may also assist other events in the blockchain. This includes managing voting events, providing protocol execution, and enforcing the rules of each blockchain.
Although master nodes do not have the same role as full nodes in adding new blocks, they still have an important role in network operations and security. By running a master node, users not only contribute to the security of the network, but they also have the opportunity to earn a share of the rewards for their services. To create a master node, users must lock up a certain amount of funds as collateral (similar to validators and staking nodes) and ensure that their node is online 24/7. Hosting the primary node on a virtual private server is considered a good practice, as it helps ensure node availability and reliability.
9. Node Ringan
This type of node can only download and store block headers. Simply put, this type of node only provides the information necessary to support daily activities or faster transactions. They are not involved in block validation. Simple Payment Verification Nodes (SPV nodes) is another name for these nodes. This type of blockchain node communicates with the blockchain but relies on full nodes to provide the necessary information. Since they do not store a copy of the blockchain, they simply query the current state of the chain and broadcast transactions for processing. They save a lot of time and storage space for users.
10. Node Kilat
Lightning nodes are a special type of blockchain node that allows users to create connections outside of the blockchain to facilitate faster and cheaper transactions. These nodes are typically used in networks that leverage channel state, which is a layer 2 scaling solution on top of layer 1 blockchains. This setup — both the node and the channel state client software — works by creating separate payment channels between two entities, such as a store and a customer. The entity creates a multi-signature address, like a vault, that can be accessed by both.
Customers deposit funds into the channel and use them to pay for goods or services from the store. Every transaction is agreed to by both parties and occurs almost instantly. When a customer has finished making a purchase or runs out of funds, the payment channel can be closed and the final balance broadcast to the blockchain. This process reduces the load on the blockchain and shortens transfer times because it allows parties to interact directly without needing each transaction to be confirmed on the blockchain. Additionally, the lightning network will seek the most efficient path for transactions, with the fewest number of intermediaries and the lowest fees, to reduce waiting times.
11. Node Super
Super nodes are an important part of some blockchain networks because they provide additional functionality and support. These nodes are often used to perform specialized tasks that are critical to the operation and maintenance of the network. For example, a blockchain may use super nodes to enforce network rules or to implement upgrades.
Unlike full or light nodes, which are the more common types of blockchain nodes, super nodes are not as widespread and their roles and responsibilities can vary from one network to another. Despite their specialized nature, super nodes play a critical role in the operation and success of many blockchain networks.
Conclusion
Blockchain nodes are one of the most important aspects of a blockchain network, and understanding them is important if you plan to enter the world of crypto and blockchain. As discussed above, there are different types of nodes, and each one performs a different function to keep the blockchain functioning smoothly. A blockchain architect, UX developer, or someone else more closely involved with creating and operating blockchains will need more technical knowledge regarding creating, setting up, and operating nodes, but the focus of this article is to provide an outline of what blockchain nodes are so you can develop a better understanding of the decentralized world and how it is organized through computer networks.
Frequently Asked Questions (FAQ)
1. What are the Steps to Set Up a Full Node?
Setting up a full node may look complicated, but it's a relatively simple process when broken down into steps:
Choose a blockchain to set up and run the node, such as Bitcoin or Ethereum
Acquiring the necessary software and hardware tools to deploy the node and then run it, which will be different for each blockchain and cryptocurrency
Obtain the appropriate hardware, which requires a small computer known as a Raspberry Pi
Running node
2. How to Run a Full Node?
To understand how to run a full node, it's first important to know that a full node can be hosted on a cloud protocol, such as Google Cloud or Amazon Web Services, or on a device with enough RAM and hard disk space to support it. It is also important to make the most of node solutions by developing them from a single base.
Once a node is set up, it is also important to keep it in check by monitoring and maintaining it when necessary to avoid errors in the blockchain.
3. Is Hosting Nodes on Blockchain Profitable?
A well-maintained node in the blockchain can be profitable and a source of passive income. Node operators can earn coin rewards and profit from future price increases. However, setting up and running a node can be expensive depending on the hardware requirements of each blockchain network. Profits also depend on the type of node you run, with some nodes being more profitable and sustainable than others. When it comes to investing your resources in anything including running a node, always make sure to Do Your Own Research (DYOR).
4. How many Nodes can the Machine Run?
The number of nodes a machine can run depends entirely on the capabilities of the machine's hardware system. On a single machine, you can choose to run one wallet or increase that number by using a virtual machine. However, it is important to make sure not to exceed 85% of the available server resource units if using a virtual private server as you may run into problems with your service provider.
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