Technologies

What are the Types of Nodes in Blockchain?

Definition: A blockchain is a distributed ledger composed of a network of multiple nodes. Blockchain nodes are the moderators that build the infrastructure of a decentralized network. Their primary function is to maintain the public ledger's consensus, which varies according to the type of node. The architecture and design requirements of a particular blockchain protocol determine the types of nodes. Each of the nodes has a specific role to play in maintaining the operation of the blockchain ecosystem.

Blockchain nodes communicate with each other to broadcast to the network and acquire the necessary consensus to map and validate new blocks in accordance with the consensus algorithm of the network. In simplified terms, a blockchain node is one of the computers that collectively run the blockchain’s software. It enables the blockchain to validate transactions and keep the network secure ensuring that the network remains decentralized. Every participant in a decentralized network is a node, and each node is critical to the network's security and stability.

Explanation

Types of Blockchain Nodes explained

There are different types of nodes in a Blockchain network that serve various purposes. Nodes communicate with each other through a peer-to-peer network, allowing them to exchange information while maintaining consensus on the state of the Blockchain.

The types of Blockchain Nodes are:

1. Full Nodes

As they maintain a complete copy of the Blockchain ledger, Full Nodes are the most essential type of node in the Blockchain network. These nodes are able to independently verify the entire Blockchain history since they download and store copies of every transaction and block that occurs on the network. The stability of the Blockchain network depends on Full Nodes, which constitute the foundation of the network.

As part of a peer-to-peer network, Full Nodes communicate with other nodes to maintain the accuracy and current state of the Blockchain. They validate transactions and blocks by checking for inconsistencies, such as double-spending or invalid signatures, before adding them to the Blockchain. Blockchain developers and organizations that require a high level of security and control over their Blockchain transactions often run Full Nodes. These nodes are in charge of validating all blocks and transactions.

2. Light Nodes

Light Nodes are a more lightweight variation of Full Nodes, sometimes referred to as SPV (Simplified Payment Verification) nodes. They are designed to operate on mobile devices such as smartphones and tablets with limited storage and processing power. Light Nodes do not download the entire Blockchain but rather a small portion of it that contains information relevant to their transactions.

To obtain the information, Light Nodes are required to verify their transactions by communicating with a number of Full Nodes in the network. Light Nodes are faster and more efficient than Full Nodes, however, because they rely on Full Nodes for validation, they are also less secure.

This type of blockchain node is designed for fast, straightforward processing of transactions and daily activities, and is second in usage popularity only to archival nodes. Light nodes are equipped with only the essential data and rely on Full Nodes to function, as they do not download the full blockchain.

3. Miner Nodes

Miner Nodes are responsible for validating transactions and generating new blocks on the Blockchain. These nodes execute complex calculations to solve mathematical problems, allowing them to create new blocks and receive rewards in the form of cryptocurrency. Miner Nodes require specialized hardware and software to perform mining calculations. They are often run by major mining pools or individuals with the financial ability to invest in the necessary equipment. Miner Nodes are critical components of the Blockchain network, ensuring that new transactions are processed and added to the Blockchain in a timely and secure manner.

Node versus Miner

Node

  • A computer (or a ‘participant’) connected to the peer-to-peer network, storing a copy of the blockchain
  • Requires only software to connect to the network
  • Receives no direct financial incentive for running a node
  • Can be a Full Node or Light Node, depending on the amount of data they store
  • Support the ‘consensus’ model process by verifying transactions and blocks, ensuring that all transactions are legitimate
  • Can be run by anyone, leading to a more decentralized network
  • Uses much less energy than mining

Miner

  • Mines and creates new blocks, adds and validates transactions
  • Creates the next block in the chain, using the header data hash of the previous block and a new hash for the current block. This then requires acceptance by the network.
  • Each time a transaction is announced on the network, specialized hardware, high computing power and energy consumption is required to solve complex cryptographic mathematical problems for the purpose of providing a stable settlement mechanism to the network
  • Verifies cryptocurrency transactions and creates new units of cryptocurrency
  • Earns rewards in the form of new cryptocurrency units and transaction fees
  • Must be a full node in order to participate in mining
  • Mining is often concentrated in the hands of a few large mining pools, raising concerns about centralized control

4. Pruned Full Nodes

A Pruned Full Node has a limited amount of memory. It downloads the blockchain and then deletes blocks in chronological order, beginning with the oldest. This is known as pruning, and blocks are not removed completely since their metadata and sequence remain. This node will keep the most recent blockchain transactions up to its limit after pruning. If the size limit is set to 1 GB, it will store the most recent gigabyte of transactions.

5. Archival Full Nodes

An Archival Full Node stores the entire blockchain ledger, meaning all the transactions, back to the beginning of time. Archival Full Nodes are the only valuable and reliable source for verifying transaction data from earlier in a blockchain’s history, as they aren’t afflicted by the time or storage limit of Pruned Full Nodes. This type of blockchain node needs to have a large amount of memory available.

While Pruned Full Nodes are beneficial in the network since they improve security and decentralization, Archived Full Nodes are essential since they are the only method for the blockchain to remain fully operational.

6. Authority Nodes

An Authority Node is a node that has been approved by the organization or community managing a blockchain. It's found in blockchains that have a vetting process required to be a node. Blockchains that use a proof-of-authority mechanism, for example, only use approved nodes managed by node operators who have provided identifying information.

7. Master Nodes

Several blockchains contain Master Nodes, which are distinguished from normal Full Nodes by specific privileges and responsibilities. A Master Node is a type of Full Node that validates transactions and maintains a blockchain record, but it cannot add blocks to the blockchain, instead, they only verify those submitted by other nodes, as well as execute other protocol-defined managing, governing, and regulatory functions.

8. Staking Nodes

These nodes use a method known as “staking” in their authentication process. Using locked funds as collateral, a proof-of-stake consensus model randomly designates authentication powers to participants who have met predetermined metrics, such as contributing a certain amount of tokens to the protocol or logging in a certain number of hours on a network. A Staking Node may consist of one user or a staking pool, which is a group of users who pool their crypto funds to have a better chance of being selected to confirm blocks.

9. Lightning Nodes

To alleviate network congestion, Lightning Nodes execute transactions off-chain through separate, out-of-network connections. The transactions are processed and then submitted to the main blockchain. Lightning Nodes are useful on congested blockchain networks with slow processing and high transaction fees. These nodes allow for low-cost, instantaneous exchanges while reducing network load.

10. Super Nodes

Rarest of the node variations, Super Nodes are created on demand to perform specialized tasks, such as implementing protocol changes or managing protocols.

Blockchain node types function as blockchain storage containers, allowing users to access and acquire data from the network. They are entirely transparent and accessible to everybody on the network, and they serve as a vital point of interaction for users. Overall, the role of different types of nodes in blockchain networks is essential for the network's security, stability, and accessibility.

Organizations of all sizes can easily implement powerful, secure, and resilient blockchain applications, safeguarded by HSMs from Utimaco.

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