What Is a Bitcoin Node and How Does It Work?

What Is Bitcoin Node?

Bitcoin Node is an important and indispensable infrastructure of any blockchain platform. So, what is a Bitcoin Node? Let’s find out with Coinminutes through the article below.

What Is a Bitcoin Node? 

Definition of Bitcoin Node

Bitcoin nodes help store, transmit, and preserve Bitcoin data on the blockchain, so theoretically, a blockchain exists on nodes. The core of Blockchain is based on the principles of P2P (Peer-to-peer) networks. In most networks, there is no central server, but rather a consensus between nodes.

A Bitcoin node can be thought of as a device connected to the blockchain network. Bitcoin Node performs certain functions such as creating, receiving, storing, or sending information. Nodes are the backbone of a blockchain and can be run on any device, from PCs and laptops to servers.

How Nodes support the Bitcoin network

A Bitcoin node is a point at which a message can be created, received, or transmitted within the Bitcoin blockchain network. Like blockchain nodes in general, bitcoin nodes are also responsible for acting as a communication point that can perform various functions such as transmitting information about transactions in the Bitcoin network system.

Node’s role is to help support the Bitcoin network. The node will maintain a copy of the Blockchain and process transactions in some cases.

A tree structure (binary tree) is used to arrange the nodes. Bitcoin has a separate node, which maintains its transaction record.

With nodes that are individual parts of a blockchain, there will be a larger data structure. The owners of these nodes willingly contribute their computing resources to store and validate transactions. Then they have the opportunity to collect transaction fees and will earn a reward amount of Bitcoin. This process is called “virtual money mining”.

Processing these transactions may require a large amount of computing power and data processing. This means needing the responsiveness of a high-end computer. Therefore, miners invest in computer equipment with CPUs (central processing units) or GPUs (central processing units). graphics) extremely powerful. To keep up with increased requirements for processing capacity and the speed of verifying transactions in the blockchain. And then they will receive a reward for their work.

Types of Bitcoin Nodes

In blockchain, Bitcoin Node has 2 main types: Full node and lightweight/SPV client.

Full Node

Full nodes are nodes that can authenticate the safety of Bitcoin. Such nodes are not lacking on the network. Such Bitcoin nodes are also considered independent validating nodes by contributing to the way each transaction and block is determined through the network’s unified set of rules. Full nodes also help insert many new block transactions into the blockchain.

Typically, a full node downloads a copy of the Bitcoin blockchain with each block transacted on the system. However, they are not the only criteria that qualify as a full node (a recorded copy of the blockchain would free application).

A Bitcoin full node has been built for various blockchain implementations, but Bitcoin Core is the simplest and most effective. Here is the limit required to use a Bitcoin Core full node:

  • Desktop or laptop running a recent version of Windows, Mac OS X, or Linux.
  • 200GB of free hard disk space.
  • With 2GB (MEMORY).
  • High-speed internet access with data download rates over 50 kB/s.
  • Wireless bandwidth or connection has very high accessibility. The full node must have or exceed the upload usage requirement of 200 GB/month and download usage requirement of 20 GB/month. You will also be able to download up to 200GB if you launch a full node for the first time.
  • Your full node needs to use about 6 hours at a time. Either or not if you allow full operation (24/7).

Lightweight/SPV client

Often referred to as the Simplified Payment Verification (SPV) client or lightweight client, it is a machine that uses the Bitcoin network but does not work in a full node. Therefore, the SPV client does not contribute to the security of the network because it does not have a version of the blockchain and does not interfere with the confirmation and authentication of transactions.

In short, SPV is a way through which users will determine whether transactions actually go to the same block or not rather than downloading all the block data. Therefore, the SPV client depends on the information provided by intermediate full nodes (or super nodes). Lightweight client works with transaction terminations and can be used in many cryptocurrencies.

How Does Bitcoin Node Work?

When a miner or Validator tries to add a new block of transactions to the blockchain, they broadcast the block to all (or part, depending on the blockchain consensus algorithm used) of the Bitcoin nodes on the network.

Based on the block’s legitimacy (validity of signatures and transactions), Bitcoin nodes can accept or reject the block. When a Bitcoin node accepts a new block of transactions, it stores that block on top of the remaining blocks it has stored. In a nutshell, this is what Bitcoin nodes do:

Bitcoin nodes check whether a block of transactions is valid and accept or reject it.

If accepted, Bitcoin nodes will store transaction blocks (store blockchain transaction history).

Bitcoin nodes broadcast and propagate this transaction history to other nodes to synchronize with the blockchain (update on transaction history).

How Bitcoin Nodes and Bitcoin Miners Differ

Here is a detailed comparison table between Bitcoin Nodes and Bitcoin Miners:

Why Is It Important to Run Your Node?

Blockchain nodes have the following important roles:

  • Accept or decline a transaction
  • Validate and manage a transaction
  • Store and encode information in a block
  • Connects to other nodes by acting as a communication point

The role of a particular node may be different compared to the rest of the nodes. Certain nodes are programmed to validate transactions, while other nodes are only responsible for recording transactions.

Pros and Cons of Running a Bitcoin Node


  • Bitcoin Nodes have a high level of privacy.
  • Verify yourself instead of trusting the wallet platform
  • Do not lose money due to actions taken by miners
  • Bitcoin Nodes support the Bitcoin network


  • Quite expensive to run
  • Takes a lot of bandwidth to upload
  • You need to download the entire blockchain (and store it if not truncated) to run Nodes
  • Regular maintenance and security are required


So we have learned what Bitcoin Node is and how it works through the above article. Hopefully, the useful information that Coinminutes provides will help you in your investment work.

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