Since its introduction in 2009, Bitcoin has become one of the most well-known cryptocurrencies in the world. As the leading example of digital coins, its current value is still the highest among all the coins, and experts believe it will continue to dominate the charts well into next year.
While cryptocurrency provides multiple benefits, it also comes with additional risks. One way to reduce such risk is running a full node for bitcoin, which involves validating each transaction and blocks.
How Bitcoin works in full node
Before running a full node, one must be familiar with the proper protocol on how a Bitcoin transaction is usually done. According to Crypto Core Media, such protocol involves the following steps:
- A transaction is made to be known by all nodes taking part in the network.
- New transactions are collected into a block by each node where it undergoes a validation process. If successful, the node will directly report the block to the system.
- The set of transactions along with signatures is then signed by existing nodes along with the successful block.
- Nodes begin operating on the nest block where a hash is created to represent the last successful/accepted block. It also works as a reference for future use.
With these steps in mind, it’s no wonder why so many people are looking for volunteers to run full nodes. Whether you’re an average Bitcoin user or an expert, every user counts since increasing a coin’s reliability is the only way to make it become more acceptable in the market.
Here are some more reasons why you should run a Bitcoin full node:
1. Supports the network
Nodes work by rejecting certain blocks and transactions that do not follow the consensus rules, thereby providing a more reliable and trustworthy network. People who run nodes also have the option to reject the connection from peers that send them unacceptable blocks and transactions, thereby boosting the network’s overall function.
2. Provides security
By providing active verification processes, users from all over the world are able to secure their trust in the network, which is what the main goal of decentralization is about. Nodes also keep the blockchain technology from being hacked as every name, transaction, and address is verified accordingly.
3. Allows you to choose
Running a node provides you the opportunity to validate the rules of both the new and the old blockchain consensus, giving you a chance to indirectly vote on which support is better. People who do not run full nodes may have their opinion considered but are most likely going to have to follow the blockchain that is already given to them.
4. Easy to run
Most people are under the impression that running a full node is for tech-savvy individuals only. This is simply not true because almost anyone with extra computing and spare bandwidth resources can help out. If you do have these resources, all you need to do is download the latest Bitcoin core client and run it accordingly. Depending on your operating system, you can find the steps on how to set your new node online.
5. Relatively inexpensive
There are certain requirements on how one can run a Bitcoin node, some of which include:
- A desktop or a laptop hardware running the latest version of your operating system
- At least 125 gigabytes free desk space
- 2 gigabytes of RAM
- A connection you can regularly monitor to ensure you don’t exceed the upload limits. You can use connections with 200 GB upload or more per month, 20 GB of downloads, and 100 GB for your initial node startup.
- Run time of at least 6 hours a day (this means running your node continuously for about 6 hours)
With the increasing number of people using Bitcoin as a viable payment option, running a full node gives you the chance to make the network more reliable for everyone to use. Whether you are an average Bitcoin user or part of an organization that specializes in blockchain technology, learning how to boost a network’s system can provide you with multiple benefits especially if you are thinking of how to improve your profit in the crypto market for the long run.
Before running a full node, make sure to first check your system to see whether or not it fits the necessary requirements. Don’t be afraid to look for more resources on how you can run a Bitcoin full node, whether it’s via social network or instructional videos.