Anyone who talks about the blockchain ecosystem refers to it as a shared, immutable ledger. But do you know who maintains this decentralized blockchain ecosystem and who shares this ledger? The answer is blockchain nodes. This article will discuss the critical concept of nodes in the blockchain ecosystem.
What are Blockchain nodes?
It is necessary to know what nodes are and why we need them. Let us take the example of cricket fans. They know the rules of playing cricket, and they have their favorite player team. They like to enjoy matches between their favorite teams. But what will happen if the cricket ground is not available to play?
In the above example, we can compare the players with blockchain platforms. Teams are different blockchains like private, public, and hybrid blockchain platforms, and the critical factor playground is the nodes in the blockchain ecosystem. That means blockchain nodes or crypto nodes are necessary for the execution of the Blockchain.
Why do we need Nodes?
The main reason for developing a Blockchain application is to ensure data integrity and network credibility. These properties are maintained by sharing the same ledger across multiple distributed systems.
The Blockchain concept states that every data-containing block is linked cryptographically to the next block. If you change or modify one block, all subsequent blocks change because their value or hash depends on the previous block.
If all blocks are concentrated in one place, a hacker could alter the values of all the blocks in this cryptographic chain. Blockchain is a distributed network that shares identical copies of the ledger or data among multiple systems to ensure data integrity. Every Blockchain network requires globally distributed systems to be truly decentralized.
If the ledger on one system is altered, the ledger on the other system serves as proof of data integrity. As a result, the availability of these systems, or Blockchain nodes, makes them distributed and trustworthy. Without nodes, a blockchain is nothing more than a database protected by cryptographic hashing.
Whether the Blockchain is private or public, a globally distributed network is necessary for the persistence of the data. It stores the transactional record on the Blockchain nodes. The immutable record on nodes is the reason for Blockchain’s unquestionable auditability of data or transaction records.
Additionally, the network can withstand centralized attacks and natural disasters by spreading out different crypto nodes globally.
One Blockchain node must supply the Blockchain ledger to the network, even if an entire nation is destroyed for any reason.
In the Blockchain network, nodes are electronic devices connected to the network with an IP address. In general, nodes serve as communication endpoints. Any user or application wishing to interact with the Blockchain must do so via nodes that act as a point of communication redistribution.
It is a common misunderstanding that all nodes provide the same functionality and that all users engaging with the Blockchain are also considered nodes.
There are two factors to consider here. For starters, only some devices connected to the Blockchain network are a node. Two, only some nodes on the Blockchain network perform the same functions.
The requirements of a specific Blockchain network define the nodes’ various roles. The Corda Blockchain, for example, has two types of nodes: one for the client and one for the digital notary who validates transactions.
Another notable example is the Hyperledger Fabric Blockchain Network, which requires multiple roles to provide a modular architecture. A node for a Membership Service Provider, Users, Endorsers, Anchors, and other entities are included. Since each node is responsible for carrying out a specific number of tasks, creating different roles enables the Blockchain to function efficiently.
How does a blockchain node work?
The primary roles of a blockchain node are broadcasting and validating transactions. When a user submits a transaction, it’s received by a node, which broadcasts it to the rest of the network. All the nodes in the network check the trade to ensure that the sender has the funds available and is authorized to send them.
The fact that every node verifies transactions helps secure the network. An invalid transaction could only be approved if 51% of the nodes confirmed it. In blockchain networks with hundreds or thousands of nodes, it’s extremely unlikely that a bad actor can take over 51%. It’s always worth researching how a specific blockchain’s nodes work if you’re considering investing in a cryptocurrency to get a more accurate idea of its security.
After the nodes validate new transactions, they’re grouped into blocks. Each new block is added to the Blockchain following the rules of its consensus mechanism, which are enforced by select nodes called full nodes.
Blockchain Nodes and Miners
To validate transactions, several blockchains, including Bitcoin, use cryptocurrency mining. There are blockchain nodes and miners in this system. A miner is a specialized node that confirms groups of transactions in exchange for cryptocurrency incentives. Nodes and miners manage different aspects of the transaction process.
As previously mentioned, the process begins with nodes validating transactions. Miners compete against one another for the chance to confirm those transactions. The Blockchain’s consensus mechanism determines the method they use. Miners compete to be the first to solve a mathematical equation in the most systematic approach, known as proof of work.
The winning miner assembles and confirms transactions into a block. The block is then broadcast to the network for evaluation by the nodes. Each node verifies that everything in the block is correct before adding the validated block to its Blockchain.
Not every Blockchain employs or employs miners. Other consensus systems use various methods to determine who validates transactions. Proof of stake, for example, forces participants to lock up their cryptocurrency funds as collateral to participate in the process.
Functions of Blockchain Nodes
1. Transaction Processing: Any transaction performed on the Blockchain is transmitted to nodes in the Blockchain network. Some nodes participate in the network’s consensus algorithm to validate the transaction, while others are only responsible for keeping the record.
In this scenario, the node receives a transaction, accepts or rejects it, records the data, and returns it to the peers. The node may be required to share this data with other nodes and maintain synchronization. In this way, Blockchain keeps track of transactions.
2. Blockchain Accommodation: Nodes are responsible for the upkeep of the Blockchain and its expansion. Every new block of data added to the Blockchain is also part of the node’s storage. These nodes expand the Blockchain ecosystem, which then syncs to keep a single copy of the ledger. On the contrary, the consensus algorithm creates blocks and validates transactions.
3. Access: Nodes ensure users continue unrestricted access to the Blockchain ledger. You interact with a node when you visit a Blockchain explorer like Etherescan to view various Ethereum network transactions or get details on a transaction based on its transaction id. The block explorer is an interface that links to a node and regains data from it.
As a result, nodes are responsible for ensuring access to the data stored on the Blockchain. Although there are various types of nodes in Blockchain, as was already mentioned in this article, this is predicated on the idea that the node is storing the data.
Types of Blockchain Nodes
1. Full Nodes: When we search for something random on Google, the search results are returned from the nearest server that stores all that information. Similarly, full nodes maintain all transaction records in the Blockchain. They are Blockchain servers.
Furthermore, full nodes are integral to the Blockchain’s governance model. Despite the possibility of various governance models, a Blockchain typically only experiences updates or improvements following the approval of most full nodes. As a result, full nodes have voting power on the Blockchain.
It is critical to understand that there are times when many full nodes agree to certain Blockchain modifications but do not form a majority. For example, 55 percent of nodes may agree to a particular change, while 45 percent disagree.
In such cases, a hard cryptocurrency fork is possible, which means the Blockchain is split in two. Both the new Blockchain and the old Blockchain will function as before with the addition of the changes that 55% of full nodes have suggested.
Full Nodes are categorized into the following subtypes.
Pruned Full Nodes: These nodes have a set amount of memory for storing data. There is no limit to the number of blocks we can add to Blockchain. But there is a restriction to the number of blocks a full node can store.
Full nodes that have been pruned download the blocks to keep the Blockchain ledger up to date. When it reaches a certain threshold, it deletes the oldest blocks to make room for new blocks, thereby preserving blockchain size. The old blocks, however, are partially deleted because their essential metadata and sequence in the Blockchain are still present to maintain the fundamental principles of Blockchain.
Archival Full Nodes: Blockchain’s most common full nodes. They keep the entire Blockchain in their database. The only significant difference between a full archival node and a pruned full node is the amount of memory available.
Authority Nodes: Anyone with access to a public Blockchain can synchronize their system with the Blockchain data to join the network and become a node. However, there are many instances where data access must be maintained. In this case, the Blockchain must be governed by authorized entities.
At this point, authority nodes come into play. The name of these nodes refers to the fact that they are in charge of or accountable for approving the entry of other nodes into the Blockchain network.
Even defining other nodes’ access to a specific data channel is sometimes the responsibility of authority nodes in some Blockchain platforms.
For example, the doorman service in Corda and the Membership Service Provider in Hyperledger Fabric will keep track of each node’s digital identity.
Miner Nodes: Some consensus algorithms, such as Proof-of-Work, require nodes to solve complex mathematical functions to validate a network transaction. Such validation tasks necessitate a substantial amount of computational power and energy consumption. As a result, miner nodes are nodes explicitly created to carry out the mining process.
Staking Nodes: Other nodes, like miner nodes, are responsible for validating a transaction on the network to maintain the consensus algorithm. These nodes must stake their funds in Proof-of-Stake, one of the most well-known algorithms, validate the transaction, and then receive payment for their efforts.
Staking involves selecting a node based on predefined criteria such as coinage or network time. Once a transaction has been validated, the chosen node can receive a reward. Staking nodes are nodes that do not require a lot of computation power.
2. Light Nodes: Remember the example of a Google search in the full nodes? Your local server keeps only some of the information. This server stores only relevant information based on recent activities, allowing you to access data quickly. This server must retrieve data from the main server if you search for something new.
A light node accomplishes this.
A light node stores and provides only the data required to support daily activities or faster transactions. They do not validate the blocks and only store the Block headers. Simplified Payment Verification nodes are another name for these (SPV nodes).
Conclusion: The role of nodes in a Blockchain network is similar to that of servers on the Internet. Understanding the concept of nodes is essential whether you are a student, a developer, a solutions architect, a researcher, a consultant, a business owner, or anyone else involved in the Blockchain world.
For example, a business owner should understand Blockchain nodes because the cost and infrastructure for developing a Blockchain application depend heavily on the node requirement. Understanding Blockchain nodes enables blockchain architects to create the optimal solution by leveraging node availability, computational power, and more.
Every Blockchain application is as dependent on Blockchain nodes as consensus algorithms or cryptographic techniques. In the following article, we will discuss what the consensus mechanism in the Blockchain is and what its variants are. Stay tuned with Blockchain Shiksha page Happy Reading ©
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