Did you know, the nodes found in the blockchain are an important component to making sure the cryptocurrency actually works, other than as a guarantee of protection on the network?
No wonder why nodes are often mentioned in most Intraday crypto articles. One of them: Know Crypto: Helium (HNT), The Connector For Internet Of Things (IOT) Devices.
In fact, the term ‘node’ is nothing new in the crypto world. Instead it is very widely used in the technology industry.
But in the crypto space, nodes carry different meanings.
What is a 'node'?
Node refers to a GPU/computer connected to a crypto network or blockchain.
Is part of the distributed ledger (DLT) technology.
Without nodes, there is no blockchain.
The presence of nodes can be identified through the authentication and execution of transactions on the network.
It is these devices that are responsible for keeping the blockchain functioning safely, fairly, and permanently.
Nodes and Proof of Work (PoW) mechanisms are interconnected because without computers, mining and transaction authentication cannot be performed.
Two types of nodes:
Full nodes
Implements network functions based on full and comprehensive resolutions based on previous blockchain records.
Supports and offers protection to the network.
Lightweight nodes
Every user in the network is a lightweight node.
Light nodes need to be connected to full nodes to join the network.
Offers ease of implementation on the network.
Well -known networks with nodes: Bitcoin and Dogecoin.
Here it can be concluded, any computer or device connected by a blockchain is known as a node. While most nodes in the network are light nodes but know that the presence of full nodes is the backbone of a blockchain.
Node vs Miner
Maybe someone is already confused - is the miner a node?
Nodes and miners are two different things.
Be aware, nodes are devices used to communicate but miners are individuals who authenticate transactions on networks and cryptocurrency mining.
This means, miners can be categorized as either full nodes or light nodes based on the solutions performed for the production of new blocks.
Here it is clearer to see how PoW works.
When the transaction is complete, the block will circulate in the blockchain. The miner’s efforts will also be offered with rewards in cryptocurrency units.
For example BTC miners will be rewarded in bitcoin.
Are you already clear about nodes?
It can be concluded that the presence of nodes actually plays many important roles especially in ensuring that affairs in the blockchain run smoothly.
