What is a Bitcoin node and what it does exactly?

over 4 years ago

Hello friends,

On the one hand, this provides a lot of convenience, but on the other hand, the price we pay for it is far too high . Bitcoin therefore ensures that this power over the money returns to us, so that all value flows back to us.

Thanks to crypto, we no longer have to worry about whether or not a third party trusts to make a payment or another financial transaction, so that financial freedom is completely ours again. And that is precisely what the Bitcoin node is important for.

A Bitcoin node is still difficult for many people to understand, while it is the core of the entire Bitcoin network. A "node" means 'junction', and these nodes ensure that a completely decentralized network can be created. here we discuss in a simple way what a Bitcoin node is exactly, why they are so incredibly important, why you should do it yourself and how to do it exactly.

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What is a Bitcoin node?

In short, a Bitcoin node is a computer that runs the Bitcoin software . This can be a miner, but also someone who runs the original Bitcoin software wallet with a copy of the complete blockchain on it . This software is connected to other computers with the same program, so different Bitcoin nodes , and together they create the entire Bitcoin network. Node therefore means " junction " in Dutch.

A distinction is made in the crypto world between different nodes, but in this article we will mainly mean the full node with Bitcoin node . The full nodes are by far the most important part of the Bitcoin network and Bitcoin stands or falls with these 'nodes' . Without these nodes we might as well go back to the traditional financial system.

What exactly does a Bitcoin full node do?

First, let's get rid of one of the greatest Bitcoin myths. It is not the miners who control the transactions , as many people think, but the Bitcoin full nodes . The only thing miners do is provide the computing power to 'find' a new block in which a transaction can be entered.

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In short, a full node does the following 3 things:

Verify transactions.
Share information with other nodes.
Keep a copy of all transactions on the blockchain.

They verify transactions by following certain rules, the rules of the Bitcoin network. For example, one of those rules is that someone cannot issue Bitcoins that are not in their possession. If someone does, the transaction will be rejected.

Other examples of rules you can think of are:

No one can spend a Bitcoin that he has previously spent ( double spending ).
Nobody can create Bitcoins from scratch .
No one can spend more Bitcoins than he has .
This already shows why these nodes may be the most important part of the Bitcoin network. It is therefore one of the most common topics for discussion .

In the view below you see a network of nodes.

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The importance of Bitcoins full nodes

If you have been in the world of cryptocurrency and Bitcoin for a while , you know that its most important characteristic is its decentralized nature . Currently, the traditional economy works in a central way and we have to trust the banks with our money, over which they have complete power. On the one hand, this provides a lot of convenience, but on the other hand, the price we pay for it is far too high . Bitcoin therefore ensures that this power over the money returns to us, so that all value flows back to us.