Running Your Own Node 

 

 

 

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What is a node?

A node is a specific computer running Bitcoin software that complies with the Bitcoin Network’s rules. Nodes store the entire blockchain in their system and checks new transactions and ensures they are valid.

 

Ok but why do people run their own nodes and do you really need one?

• Nodes verify transactions themselves instead of trusting banks or apps.

• Your wallet doesn't leak transactions to third parties

• More nodes = stronger network. 

• Some wallets operate more efficiently when running on your own node.

 

How do nodes work?

Download the entire blockchain and all its data (~500 GB). Your node will then sync all the transactions from the blockchain in history.

 

Once completed, nodes will begin verifying new transactions.

• The node ensures people sending Bitcoin have enough of it and that no one is trying to double spend their Bitcoin.

• Nodes then relay valid transactions to other nodes.

• Think of nodes as the enforcers of Bitcoin’s rules.

 

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​​Common questions:​

Will I earn bitcoin for running my own node?

• No. Only miners earn rewards. Nodes just keep the network honest

 

How much electricity does it consume?

• Typically ~ 5-15 W (less than a fridge)

 

Can I turn my node on and off?

• Yes, but everytime you turn the node off it must resync to the network again.