Node

Types of Nodes

There are mainly two types of nodes in a cryptocurrency network:

• Full Nodes : These nodes download the entire blockchain of their respective cryptocurrency. By downloading the complete history of transactions, these nodes contribute to the verification and relay of transactions.
• Lightweight or SPV Nodes : Simplified Payment Verification nodes, also known as Lightweight nodes, perform a similar function to Full Nodes but do not download the entire blockchain. They only download the header of blocks for speed and less storage use but rely on Full Nodes for transaction verification and relay.

Role of Nodes in Blockchain

Nodes in a network each have a crucial role to play in the operation and maintenance of a blockchain. These roles include:

• Maintaining Blockchain Ecosystem : Every node holds a copy of the digital ledger (blockchain) and works cooperatively with other nodes to maintain the ledger's consistency throughout the network.
• Transaction Verification : Nodes contribute to the network by verifying transactions. They ensure the transactions' validity based on predefined rules set by the blockchain network.
• Adding New Blocks : In the case of 'mining nodes,' they further process and add new transaction blocks to the blockchain.

Importance of Nodes

Nodes are fundamental to the blockchain network, creating the decentralized nature of cryptocurrency. They allow every participant to hold a copy of the entire transaction history, thereby preventing any single entity from gaining control over the network. They also play a vital role in processing, verifying, and securing transactions.