Over the years, blockchain technology has gained significant popularity and wide adoption due to its decentralized, reliable, and secure nature.
Blockchain technology offers a great alternative to traditional systems. Traditional platforms rely on a central authority to maintain the system and process the transactions between members.
This centralized approach comes with its own drawbacks which blockchain technology is aiming to address.
The technology eliminates the need for middlemen by allowing participants to transact directly with each other using a peer-to-peer (P2P) decentralized network.
To make this possible, blockchain technology uses a unique way of storing data which is then used by members of the system for transaction processing and verification.
These members of the blockchain that are responsible for validating transactions and maintaining the system are called nodes.
Blockchain nodes come in different types and can take on various roles on a blockchain.
Blockchain nodes play an important role in the operation of a blockchain platform so it’s always a good idea to learn more about them.
In this article, you will learn about blockchain nodes, their various types, and their functionalities.
We can categorize blockchain nodes into three broad categories: Full Nodes, Light Nodes, and Masternodes.
Let’s take a quick look at these blockchain nodes and the functions and characteristics of each.
This category of blockchain nodes is essential for maintaining the integrity of the blockchain as they have the capacity to store a complete copy of the ledger.
Full nodes are essential to blockchain security as they are a vital part of the system’s consensus. Most major upgrades and updates need to be confirmed by the majority of full nodes.
These nodes are responsible for verifying new blocks and transactions and ensuring that every new transaction and block on a network is duly verified.
Full nodes may have different roles.
❖Transaction Validation: Blockchain nodes are responsible for verifying transactions in a blockchain network. Mining or staking nodes then use these verified transactions to form new blocks which are then added to the chain. This helps to ensure that only valid blocks are added to the chain, maintaining the integrity of the network.
❖Security: If there are more nodes connected to a network, the security of the blockchain network becomes stronger. Blockchain nodes help to make a network secure by storing a copy of the blockchain in different devices. This makes it difficult for bad actors to manipulate the network or commit fraud.
❖Decentralization: Another notable function that nodes offer is the enhancement of a decentralized blockchain environment. By allowing multiple computers to participate in the consensus mechanism of a network, governance is not done by a central authority but collectively.
❖Transparency: Additionally, nodes of a public blockchain allow everyone to be able to check the ledger of the blockchain and its transactions. This feature creates a transparent system which can further reduce the chances of fraud and manipulation.