What is a node?

Think of a shared transaction ledger that isn’t kept in a single office but circulates among many computers. Nodes communicate with each other, exchange information and, depending on their role, check whether new entries follow the rules. If one computer goes offline, the others can keep the network running.

When you send crypto, your wallet usually broadcasts the transaction through a node. From there it can spread to other nodes, get checked and, if valid, be included in a block. The node doesn’t need to know your name to check, for example, whether the transaction’s digital signature is correct.

Not all nodes do the same job. A full node verifies transactions and blocks against the network’s rules, without simply relying on someone else’s word. A light node uses less data and relies more on information from other nodes. The exact functions vary from blockchain to blockchain.

Why it matters

For us, the essence is the ability to verify independently. Anyone who runs their own full node and connects their wallet to it can check the network’s data without depending solely on a company’s infrastructure. You don’t need this to use crypto, but it explains why nodes are so closely tied to decentralization.

How they are distributed also matters. Many nodes controlled by the same company don’t offer the same independence as nodes run by different people and organizations. The raw number alone doesn’t tell the whole story.

What to watch out for

Running a node doesn’t automatically mean mining or rewards. Miners and validators have specific roles in producing or validating blocks, depending on the network. Simply running a node doesn’t bring in income. It also requires an internet connection, storage space and maintenance, with requirements that vary significantly by network and node type.