What Are Nodes in Cryptocurrencies?

Every participant in mining is a node. It is a computer running cryptocurrency mining software. All nodes are interconnected, forming a unified network. These include all clients with wallets.


Purpose of Nodes

Nodes serve various purposes. Among the main possible uses are:

  • compliance with network rules;
  • dissemination of information about conducted transactions and account balances;
  • storage of copies of data on all transactions.

There are different types of nodes, each requiring working hardware and corresponding software. Blockchain technology implies complete decentralization – the distribution of computing power among different nodes.

There are no dedicated servers in the system, and consensus is maintained among users. This imposes certain responsibilities on each participant to ensure the security and integrity of data.


Consensus in the Network

All users are placed in a decentralized network operating on a P2P principle. To coordinate among all participants, a consensus is introduced to avoid complications. Consensus refers to the rules governing the blockchain system.

Regardless of the chosen cryptocurrency for mining, unified rules apply to transaction conduct. This approach achieves a high level of decentralization and independence for each node.

Bitcoin stands out for its highest security compared to other cryptocurrencies. Here, validators are chosen by voting, and the number of possible participants is limited, preventing corruption.


Types of Nodes

There are several types of nodes, including full and lightweight nodes. The former contains the complete blockchain history, while the latter, lightweight versions, use only headers to save space on the client's hard drive. Additionally, there are other types used in practice.


Full Nodes

Function as servers, supporting consensus. They store copies of blockchains, verify transactions, and configure various functions for instant data transmission. Decision-making involves voting for changes, and if more than half vote against, the proposal is not accepted.


Pruned Full Nodes

Responsible for loading blockchain blocks. When the limit is reached, old information is deleted to store new chains. Only headers and identifiers of old blocks remain. Pruned nodes function similarly to full nodes and participate in consensuses.


Archival Full Node

Presented as a server responsible for maintaining consensus and token verification. All data is stored on the computer's hard drive. There are archival nodes that may or may not add new blocks to the blockchain.


Mining Nodes

Nodes that perform all necessary actions for data processing. They create new blocks and determine the necessary parameters for subsequent blocks.


Staking Nodes

Analogous to a deposit, users buy cryptocurrency and store it at certain interest rates. Accumulated rewards are paid out over a specific period.



Not intended for adding new blocks to the blockchain. Masternodes track current transactions and verify them. Launching masternodes can earn rewards for providing network protection services.


Lightweight Nodes

These nodes are used for regular transactions. During operations, they interact through full nodes with the blockchain to provide all necessary information.


Lightning Nodes

The essence lies in user interaction beyond blockchains. This allows for faster transaction speeds with minimal fees – around 10-20 satoshis.


Nodes After Fork

If the majority votes for changes, users implement them. They download new applications, forming a new fork.


Hard Fork

Involves changing the consensus algorithm. These are all changes that are entirely different from previous client versions, resulting in a new block.


Soft Fork

It is a software fork. Updating the node is not required to make changes; it is sufficient to install updated software.


Using Virtual Servers

The choice of a virtual private server depends on the user's preferences. To make a purchase decision, it is essential to carefully study all the features of VPS application.


Additional Features

A full node takes more time to install. To maximize profits, it is recommended to install a masternode. Profit can be obtained through a blockchain node, but it also depends on the type of node.

On one computer, it is possible to run a different number of nodes considering computational power. Only one wallet can be launched simultaneously on one device. For others, a virtual machine needs to be installed.