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Nodes
Sovereign Assets • Layer 1s • Payment Networks
network participants maintaining blockchain infrastructure
Nodes are individual computers or devices that participate in a blockchain network by maintaining a copy of the distributed ledger and helping validate and relay transactions. Some nodes perform basic functions, while others—like full nodes and masternodes—take on more advanced roles such as governance, consensus, and block verification. Nodes are essential for maintaining the security, decentralization, and integrity of a blockchain.
Use Case: A validator node on a proof-of-stake blockchain confirms transactions, proposes blocks, and helps secure the network while earning staking rewards for its operator.
Key Concepts:
- Block Verification — Process where nodes confirm that a block’s transactions follow the network’s rules
- Consensus Mechanism — The protocol by which nodes agree on the state of the blockchain
- Validator Node — A type of node responsible for proposing and validating new blocks
- Governance — Decision-making processes in which certain nodes may participate
- Full Node — Nodes maintaining complete blockchain history and validating all transactions
- Light Node — Lightweight nodes verifying transactions without storing full history
- Archival Node — Nodes storing complete historical state data for queries
- Masternode — Specialized nodes providing advanced network services
- Node Operator — Entity running and maintaining node infrastructure
- Decentralization — Distribution of control enabled by diverse node operators
- Unique Node List — XRP’s trusted validator set for consensus
- Proof of Stake — Consensus where nodes stake tokens to validate
- Proof of Work — Consensus where nodes compete through computation
- Blockchain — Distributed ledger that nodes maintain and secure
Summary: Nodes are the backbone of blockchain networks, ensuring decentralization, integrity, and consensus. Without nodes, distributed ledgers would not function or remain secure.
Types of Blockchain Nodes
different roles within the network
Key Distinction: Not all nodes are created equal. Full nodes secure the network without reward. Validator and mining nodes earn rewards but require stake or hardware. Light nodes enable participation without heavy resource requirements.
What Nodes Actually Do
the work that keeps blockchains running
Transaction Processing
• Receive new transactions
• Verify signatures
• Check balance sufficiency
• Reject invalid transactions
• Relay valid ones to peers
• Maintain mempool
• Receive new transactions
• Verify signatures
• Check balance sufficiency
• Reject invalid transactions
• Relay valid ones to peers
• Maintain mempool
Block Validation
• Receive new blocks
• Verify block structure
• Check transaction validity
• Confirm consensus rules
• Reject invalid blocks
• Add valid blocks to chain
• Receive new blocks
• Verify block structure
• Check transaction validity
• Confirm consensus rules
• Reject invalid blocks
• Add valid blocks to chain
Network Participation
• Connect to peer nodes
• Share blockchain data
• Propagate new blocks
• Maintain consensus
• Respond to queries
• Support network health
• Connect to peer nodes
• Share blockchain data
• Propagate new blocks
• Maintain consensus
• Respond to queries
• Support network health
State Management
• Track account balances
• Store smart contract state
• Update after each block
• Maintain UTXO set (Bitcoin)
• Provide historical data
• Enable wallet queries
• Track account balances
• Store smart contract state
• Update after each block
• Maintain UTXO set (Bitcoin)
• Provide historical data
• Enable wallet queries
Security Enforcement
• Reject double-spends
• Enforce protocol rules
• Detect invalid blocks
• Resist attacks
• Maintain chain integrity
• Preserve decentralization
• Reject double-spends
• Enforce protocol rules
• Detect invalid blocks
• Resist attacks
• Maintain chain integrity
• Preserve decentralization
Continuous Operation: Nodes work 24/7, processing transactions, validating blocks, and maintaining consensus. The more nodes in a network, the more decentralized and resilient it becomes. Every node strengthens the whole.
Node Requirements by Network
what it takes to run nodes on major blockchains
Bitcoin Full Node
• Storage: ~600 GB
• RAM: 2 GB minimum
• Bandwidth: 200 GB/month
• Stake: None required
• Rewards: None
• Difficulty: Low
• Storage: ~600 GB
• RAM: 2 GB minimum
• Bandwidth: 200 GB/month
• Stake: None required
• Rewards: None
• Difficulty: Low
Ethereum Full Node
• Storage: ~1 TB (pruned)
• RAM: 16 GB recommended
• Bandwidth: High
• Stake: None (full node)
• Rewards: None
• Difficulty: Moderate
• Storage: ~1 TB (pruned)
• RAM: 16 GB recommended
• Bandwidth: High
• Stake: None (full node)
• Rewards: None
• Difficulty: Moderate
Ethereum Validator
• Storage: ~1 TB
• RAM: 16 GB
• Stake: 32 ETH
• Uptime: 24/7 required
• Rewards: ~4-5% APR
• Difficulty: Moderate-High
• Storage: ~1 TB
• RAM: 16 GB
• Stake: 32 ETH
• Uptime: 24/7 required
• Rewards: ~4-5% APR
• Difficulty: Moderate-High
XRP Validator
• Storage: ~15 GB
• RAM: 8 GB
• Stake: None
• Uptime: High required
• Rewards: None direct
• Difficulty: Moderate
• Storage: ~15 GB
• RAM: 8 GB
• Stake: None
• Uptime: High required
• Rewards: None direct
• Difficulty: Moderate
Flare FTSO Provider
• Storage: Moderate
• RAM: 8 GB+
• Stake: Delegated
• Data feeds: Required
• Rewards: Variable
• Difficulty: Moderate
• Storage: Moderate
• RAM: 8 GB+
• Stake: Delegated
• Data feeds: Required
• Rewards: Variable
• Difficulty: Moderate
Hedera Node
• Council members only
• Enterprise grade
• Governance role
• Selected entities
• Rewards: Shared
• Difficulty: N/A (closed)
• Council members only
• Enterprise grade
• Governance role
• Selected entities
• Rewards: Shared
• Difficulty: N/A (closed)
Accessibility: Anyone can run a Bitcoin or Ethereum full node with consumer hardware. Validator nodes require more commitment—stake, uptime, and technical expertise. Choose your participation level based on your resources and goals.
Why Nodes Matter
the foundation of blockchain security
For the Network
• Decentralization — More nodes = less centralization
• Security — Harder to attack distributed systems
• Censorship Resistance — No single point to block
• Redundancy — Network survives node failures
• Verification — Independent rule enforcement
• Trust — Collective agreement replaces authority
• Decentralization — More nodes = less centralization
• Security — Harder to attack distributed systems
• Censorship Resistance — No single point to block
• Redundancy — Network survives node failures
• Verification — Independent rule enforcement
• Trust — Collective agreement replaces authority
For Users
• Self-Verification — Check transactions yourself
• Privacy — No third-party sees your queries
• Reliability — Direct network access
• Speed — No intermediary delays
• Sovereignty — Don’t trust, verify
• Contribution — Support networks you use
• Self-Verification — Check transactions yourself
• Privacy — No third-party sees your queries
• Reliability — Direct network access
• Speed — No intermediary delays
• Sovereignty — Don’t trust, verify
• Contribution — Support networks you use
Bitcoin Nodes
~50,000+ reachable
Global distribution
15+ years running
Most decentralized
~50,000+ reachable
Global distribution
15+ years running
Most decentralized
Ethereum Nodes
~10,000+ nodes
Growing validator set
500,000+ validators
Highly decentralized
~10,000+ nodes
Growing validator set
500,000+ validators
Highly decentralized
XRP Validators
~150 validators
UNL-based trust
Fast finality focus
More centralized
~150 validators
UNL-based trust
Fast finality focus
More centralized
The Decentralization Spectrum: Node count directly impacts decentralization. Bitcoin’s 50,000+ nodes make it nearly impossible to censor or attack. Smaller node counts increase efficiency but introduce centralization trade-offs. Understand the networks you use.
Running Your Own Node
contributing to network decentralization
Benefits
✓ Verify transactions yourself
✓ Enhanced privacy
✓ No third-party trust
✓ Support decentralization
✓ Learn blockchain internals
✓ Direct network access
✓ Contribute to security
✓ Verify transactions yourself
✓ Enhanced privacy
✓ No third-party trust
✓ Support decentralization
✓ Learn blockchain internals
✓ Direct network access
✓ Contribute to security
Challenges
✗ Storage requirements
✗ Bandwidth consumption
✗ Initial sync time (days)
✗ Ongoing maintenance
✗ Technical knowledge needed
✗ Usually no direct rewards
✗ Hardware/electricity costs
✗ Storage requirements
✗ Bandwidth consumption
✗ Initial sync time (days)
✗ Ongoing maintenance
✗ Technical knowledge needed
✗ Usually no direct rewards
✗ Hardware/electricity costs
Hardware Options
• Dedicated computer
• Raspberry Pi (some chains)
• Cloud VPS
• Pre-built node devices
• Old laptop repurposed
• Dedicated computer
• Raspberry Pi (some chains)
• Cloud VPS
• Pre-built node devices
• Old laptop repurposed
Software Options
• Bitcoin Core
• Geth (Ethereum)
• Nethermind, Besu
• rippled (XRP)
• Chain-specific clients
• Bitcoin Core
• Geth (Ethereum)
• Nethermind, Besu
• rippled (XRP)
• Chain-specific clients
Easy Start
• Umbrel (Bitcoin/LN)
• DAppNode
• Avado
• Start (full node)
• Casa Node
• Umbrel (Bitcoin/LN)
• DAppNode
• Avado
• Start (full node)
• Casa Node
Start Simple: Running a Bitcoin full node is the easiest entry point—modest requirements, excellent documentation, and you contribute to the most decentralized network. Plug-and-play solutions like Umbrel make it accessible to non-technical users.
Nodes and Passive Income
earning rewards through network participation
Reward-Earning Nodes
• Validators — Stake tokens, earn rewards
• Mining Nodes — Compute power for rewards
• Masternodes — Collateral for services
• FTSO Providers — Data feeds for rewards
• Oracle Nodes — External data delivery
• RPC Providers — API access fees
• Validators — Stake tokens, earn rewards
• Mining Nodes — Compute power for rewards
• Masternodes — Collateral for services
• FTSO Providers — Data feeds for rewards
• Oracle Nodes — External data delivery
• RPC Providers — API access fees
Alternative: Delegation
• Delegate to validators
• No node operation needed
• Share in staking rewards
• FLR FTSO delegation
• Kinesis Holder’s Yield
• Lower effort, lower control
• Delegate to validators
• No node operation needed
• Share in staking rewards
• FLR FTSO delegation
• Kinesis Holder’s Yield
• Lower effort, lower control
Effort vs Reward: Running reward-earning nodes requires significant commitment—stake, uptime, and technical expertise. For most users, delegating to professional node operators or using non-interactive yield systems like Kinesis offers a better effort-to-reward ratio.
Nodes Checklist
understanding and participating in network infrastructure
Understanding Nodes
☐ Know different node types
☐ Understand node functions
☐ Grasp decentralization impact
☐ Learn consensus participation
☐ Recognize reward mechanisms
☐ Appreciate security contribution
☐ Know different node types
☐ Understand node functions
☐ Grasp decentralization impact
☐ Learn consensus participation
☐ Recognize reward mechanisms
☐ Appreciate security contribution
Running a Node
☐ Assess hardware requirements
☐ Choose blockchain network
☐ Select node software
☐ Plan storage and bandwidth
☐ Set up monitoring
☐ Maintain and update
☐ Assess hardware requirements
☐ Choose blockchain network
☐ Select node software
☐ Plan storage and bandwidth
☐ Set up monitoring
☐ Maintain and update
If Not Running Nodes
☐ Use reputable RPC providers
☐ Consider delegating stake
☐ Support decentralized services
☐ Verify through explorers
☐ Understand trust assumptions
☐ Appreciate node operators
☐ Use reputable RPC providers
☐ Consider delegating stake
☐ Support decentralized services
☐ Verify through explorers
☐ Understand trust assumptions
☐ Appreciate node operators
The Principle: Nodes are the physical manifestation of decentralization. Every node strengthens the network. Whether you run one yourself or simply understand their importance, appreciating nodes is fundamental to understanding blockchain security and resilience.