What is a Node?

What is a Node?

What is a Blockchain Node, why are they so important and how can you use them to your advantage?

This is an Article on Blockchain Nodes.





What is a Node?


A Node is a computer that connects to a cryptocurrency blockchain/network to support the network through validation and relaying transactions. A node will store the entire history of transactions that have been facilitated on the blockchain.

A blockchain lives within the nodes. When the blockchain receives a group of transactions, it will communicate it to each node on the network, so all nodes can store the information and stay up to date.


When a user on the network makes a transaction using their native crypto, all the data is processed and stored on the network and each node must confirm that all blocks/network transactions are compliant with the rules of the blockchain.

Visa or PayPal which are dominated by centralised powers can stop or pause any of your transactions or freeze your bank account. The Blockchain instead does not rely on any centralised authorities as they use what is known as a consensus mechanism.

Most blockchains use either the Proof-of-Work (PoW) or the Proof-of-Stake (PoS) with the exception that some blockchains use different and unique consensus mechanisms.


Anyone can set up a #node as long as they have a computer with strong hardware and be aware that it will eat up a lot of electricity, so it can be very expensive to run a node depending on where you live in the world.



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