What is a Node and why having many of them concerns you a lot?
That’s the question I am going to answer in this article.
This is the foundation of a crypto currency. Like many of you know crypto currencies are based on decentralized ledger. So a Node is that Ledger, that contains all transactions done from the beginning of the currency. The node connects to other nodes and shares or Syncs with the most up to date Ledger version out there. Nodes are connected via a P2P protocol.
So, as this is all good, you might ask – why is that concerning me, the miner? I exist only to mine cryptos and buy Lambos. Well, you are using at least one mode per crypto that you mine, because every local wallet that you have and use is basically a node with the private keys for the address you store your coins at.
Your wallet connects to at least 8 other nodes/wallets and exchange info on the latest mined block, the transactions in the block and agrees what should be the next mined block in the network. That’s right, the nodes share possible solutions for the next block and wait for the majority of the node network to agree on it. Once the network agrees on it, block is mined. The nodes keep a lot of info from the network in their mempool, like the list of waiting transaction that need to be verified. So once the node network moves forward with the next block, the rest of the network syncs the block and starts verifying the transaction that were mined in that block. You can see those verification been called also confirmation.
Hey, wait a minute, but how are your solutions produced by your mining hardware going in the network and been proposed as the next block?
Well simple – you mine to a pool, which is actually a node that accepts solutions from connected miners.
Same as a regular node, it just can connect to more peers. Regular nodes connect to 8 peers maximum, while full nodes can connect to over 124 other modes and share info with them.
Same as Full node, but you receive dividends on every mined block for running the node. Usually the crypto currency specifies the amount of each block that goes to miners and to the master nodes. But don’t sell your miners yet, there is a catch. To be eligible of running a Master node you need to buy a predefined amount of the coin and deposit it in the Master node address. And while in the beginning of the Master nodes you were able to have one with investment of just 1000$, now most crypto coins ask you to buy tokens for up to 10000$ and some even more.
Different currencies call their nodes with different names – Secure Nodes, Z nodes and so on.
While you have curtain benefits from having Master nodes on your crypto coin network, there is a major disadvantage – the currency can tend to loose it’s decentralization. One of the major safety features of any crypto coin is that the ledger is decentralized which makes it almost impossible to counterfeit it. I say almost impossible, because if one person holds enough nodes on the network and can alter their ledgers, he can introduce a new way of creating coins from thin air. With running a Master node you also have to comply with the conditions of the Development team of the coin. Today you need 10000$ to run a node, tomorrow 100000$ because there are too many Master nodes, or you have to hire a specialized dedicated server with a specific company to run their node.
Like most things crypto – you never know what tomorrow will bring.
On the other hand for the features of a crypto to become available, the Developers have to be able to make all people running nodes to upgrade to their latest versions, and having Master nodes on their network solves that problem, as the list of predefined nodes in the crypto wallet will include only Master nodes.
So in conclusion, if you have invested in a Crypto currency – run a full node, make the network more decentralized and secure, point your wallet to your Full node and have fast sync times.
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