What Is A Bitcoin Node?
A bitcoin node is any computer that runs the bitcoin software, enforces the bitcoin consensus rulesWhat Are The Bitcoin Consensus Rules? The Bitcoin consensus rules are the set of rules that all of the bitcoin nodes agree on that govern and maintain the Bitcoin protocol...., and validates bitcoin transactions and blocks.
Bitcoin nodes are the servers that maintain a history of all of the transactions on the blockchainWhat Is The Blockchain? The blockchain is the public record of bitcoin transactions, which are organized into blocks that are all chronologically linked to one another. Because every block is.... There are various methods for running a bitcoin node, each of which provides different functionality. The most prevalent and significant type of node is referred to as a full node or full archival node.
Different Types Of Bitcoin Nodes
There are a number of different types of Bitcoin nodes. Some keep a full and complete record of the entire blockchain all the way back to the genesis block while some only keep a partial record of transactions that they need. Some bitcoin nodes are searching to find a nonceWhat Is A Nonce? A nonce, short for "number used once", is a pseudo-random number used by miners to iterate the output of their block hash. Miners use a trial-and-error... to win the block rewardWhat Is The Block Reward? The block reward is how Bitcoin miners are compensated for mining and adding blocks of transactions to the blockchain. The block reward is made up... on the base layer of Bitcoin while others are for routing payments on the second layer.
All of the different types of bitcoin nodes do something different but they all support the Bitcoin network in one way or another.
Full Node
A Full Node, sometimes known as a full archival node, is a bitcoin node that maintains a complete record of all of the transactions on the blockchain and the UTXOWhat Is A Bitcoin UTXO? UTXO is short for unspent transaction output and is any particular fraction of a bitcoin that has not been spent. A single UTXO can hold... set, downloads and verifies all of the transactions, relays blocks and transactions to other nodes, and ensures that the consensus rules are followed. Full nodes are also capable of running a lightning networkWhat Is The Lightning Network? The lightning network is a layer 2 payment protocol that enables near-instant, low-fee, private payments on the Bitcoin network. It is intended to enable scalable,... implementation.
Whenever someone uses the term “full node,” they’re usually referring to any node that keeps a full record of the entire blockchain.
Mining Node
A mining node, commonly known as Bitcoin miner, is a specialized type of bitcoin node that performs the bitcoin mining process. This involves trying to solve mathematical problems using computer processing power in order to add blocks of transactions to the blockchain. If a mining node (miner) is the first to solve the problem, it is rewarded with new bitcoins. The mining process uses a proof of work system, which makes it impossible for miners to fraudulently add blocks of transactions to the blockchain.
Whenever someone refers to a bitcoin miner, they are technically talking about a mining node.
Lightning Node
A lightning node is a full node that runs one of several lightning network implementations. Lightning nodes have the ability to open and close payment channels, enabling lightning users to make near-instant, low-cost payments, with increased privacy.
Furthermore, lightning nodes are able to earn sats by collecting routing fees for payments made through their payment channels. While full nodes are responsible for verifying every transaction on the bitcoin network, a Lightning node is only responsible for verifying the validity of transactions that it directly handles.
Pruned Node
A pruned node is a variant of full node that performs all of the same functions as a full node but does not store a complete record of the blockchain. Instead, they only keep a “pruned” record of the blockchain.
Pruned nodes download and validate all of the same transaction/block data as full nodes, but once all of the transactions and blocks have been verified, they delete old data according to settings defined by the node operator. Pruned nodes continue to relay all transactions and blocks that they verify, but after data is pruned, they can only relay their pruned blockchain data.
For example, if you only want to store the past 100 GB of data on your node, you can “prune” any data that exceeds 100 GB after downloading and verifying all transactions and blocks. You’d still have a record of the latest 100 GB of data and relay any transaction data contained within those blocks, but you wouldn’t be able to validate any data outside of your pruned records.
Light Node
A light node, or lightweight node, is a type of Bitcoin node that allows users to access the Bitcoin network without downloading and storing the full blockchain.
Instead, light nodes only download the block headers and use a simplified payment verification (SPV) to verify transactions. The main advantage of a light node for regular users is in how much faster it can be set up, compared to running a full node. Since it doesn’t need to store the entire blockchain, it takes up much less space on the user’s computer or mobile device.
Since light nodes do not have a complete record of the blockchain, they need to connect to a full node to update the validity of the block headers they’ve downloaded. Mobile wallets are the most common implementation of light nodes because a mobile phone can easily download and store just the block headers but is completely unable to store a complete record of the blockchain.
Cloud Node
A cloud node is a bitcoin node that is run on a cloud server rather than on a local computer.
Cloud nodes seem to be gaining popularity for anyone who wants to run a bitcoin payment server or a lightning node without having to maintain their own server and manage lightning payment channels.
If you don’t have the budget, resources, technical skills, or desire to run your own node, a cloud node may be the best option available.
Running Your Own Bitcoin Node
You can run a bitcoin node on any machine that meets the technical requirements, such as a desktop computer. However, many node operators choose to use a pocket-sized computer known as a Raspberry Pi with an external 1TB hard drive because full bitcoin nodes demand a lot of storage space.
These small computers are a good choice for running bitcoin because they are small, affordable, and well-suited to meet the technical requirements of a bitcoin node. For a Raspberry PiWhat Is A Raspberry Pi? Raspberry Pi (Ras Pi) is a credit card sized single board computer that was first developed in the United Kingdom by the Raspberry Pi Foundation...., you can expect to pay approximately $100 for a model with 8GB of RAM (which is optimal) that will allow you to run a basic node as well as some additional apps.
Since most nodes running on a Raspberry Pi have 8GB of RAM and plenty of additional disk space, several node services feature open-source app “stores” that allow their users to run third-party applications. These node services and the apps that they run are turning bitcoin nodes into personal cloud servers that are owned and operated by people like you instead of by multi-billion-dollar tech companies.
Here are some of the most used and trusted node services that are available.
Umbrel
Umbrel is a personal server that runs on a Raspberry Pi, making it easy for anyone to run their own bitcoin node. Umbrel comes with a number of apps pre-installed, including an electrum server and a lightning node. In addition, Umbrel can be used to run other apps, such as a personal VPN, password manager, media server, and much more.
MyNode
MyNode is a project that allows anyone to run their own bitcoin node using a Raspberry Pi. MyNode includes a number of pre-configured apps, including an electrum server and a couple of lightning implementations. MyNode also offers easy access the command line which is a great way to learn about the inner workings of the Bitcoin network. To get started, all you need is a Raspberry Pi, a 1TB hard drive, and some other miscellaneous hardware.
If you don’t know how to build your own node or are simply uninterested, you can purchase preassembled nodes directly from MyNode.
Ronin Dojo
The Ronin Dojo is a free open-source software (FOSS) Bitcoin node implementation with a focus on privacy. It comes with several features that help to preserve and increase privacy like support for Samourai Whirlpool so you can passively CoinJoinWhat Is CoinJoin? CoinJoin is a type of privacy-enhancing Bitcoin practice that groups multiple UTXOs (inputs) together and spends them with other users' transactions, making it more difficult to know... your stack until you are ready to spend.
You can purchase one of their 2 plug-n-play models; the Tanto and the Bokuto. If you’re more interested in a DIY node, you can purchase all of the hardware independently and build one yourself. While you can build a Dojo with a Raspberry Pi, they are designed to be built on a Pine64 computer.
BTCPay Server
BTCPay Server is a free open-source software (FOSS) project that allows you to run your own bitcoin node and payment server. This means that you can accept bitcoin payments without the need for a third party like VISA. Running your own node also allows you to keep your bitcoin private keysWhat Are Bitcoin Keys? Bitcoin keys are randomly generated strings of numbers and letters that are used to send bitcoin and/or verify ownership of a bitcoin address with a digital... offline, which gives you control over your funds as well as more privacy. BTCPay Server is easy to install and use on a Raspberry Pi or other hardware. If you’re interested in running your own bitcoin payment server, BTCPay is the industry standard.
Nodl
Nodl offers two different models of bitcoin nodes, the Nodl One and the Nodl Dojo, both of which are plug-n-play devices that make it easy to run your own bitcoin node. The Nodl One is their standard model, offering support for bitcoin and Lightning Network transactions. The Nodl Dojo is a more advanced model that comes with more specialized software specifically for running Samourai wallet.
Nodl also offers a cloud node service for those who would rather leave the technical end if things in the hands of the pros.
Voltage
Voltage is a cloud node service that offers the ability to easily run your own lightning node as well as a BTCPay Server for a monthly fee. Setting up and maintaining a lightning node can be tricky and time-consuming. That’s where Voltage Cloud comes in. You can set up and running a node with just a few clicks.
Bitcoin Node FAQ
How Many Bitcoin Nodes Are There?
While the exact number of nodes is unknown, sources such as BitNodes suggest that there are currently a ~17,000 reachable nodes as of June 10th, 2023. Approximately 60% of those reachable nodes are running behind Tor and have a .onion IP address.
Why Run A Bitcoin Node?
Where are multiple reasons to run a bitcoin node but some of the most common reasons are to practice good bitcoin privacy, decentralize the blockchain, uphold the bitcoin consensus rules, help bitcoin to scale by running a lightning node, and it can also be a powerful tool to help orange pill your friends and family.