What is a Node?

A node is any computer that connects to a blockchain network and participates in validating and relaying transactions. Nodes are the backbone of decentralized networks, ensuring that the blockchain remains secure, distributed, and censorship-resistant.

Types of Nodes

Full Nodes

  • Store complete blockchain history
  • Validate all transactions and blocks
  • Enforce network rules
  • Highest security but requires significant storage

Light Nodes

  • Store only block headers
  • Rely on full nodes for transaction verification
  • Lower resource requirements
  • Good for mobile wallets

Archive Nodes

  • Store complete blockchain history plus all historical states
  • Used for data analysis and block explorers
  • Require massive storage

Mining/Validator Nodes

  • Full nodes that also create new blocks
  • Earn rewards for adding valid blocks
  • Require significant resources (PoW) or stake (PoS)

Why Nodes Matter

More nodes mean:

  • Greater security: Harder to attack the network
  • Better decentralization: No single point of control
  • Faster propagation: Transactions spread quickly
  • Network resilience: Survives node failures

Running Your Own Node

Benefits of running a node:

  • Verify your own transactions
  • Support network decentralization
  • Privacy (no reliance on third parties)
  • Full sovereignty over your funds

Popular node software:

  • Bitcoin Core (Bitcoin)
  • Geth, Erigon (Ethereum)
  • Various altcoin implementations

Nodes and Trading

Exchanges like Binance and Coinbase run multiple nodes to process transactions quickly and reliably.