What Are Nodes? Detailed Guide

What Are Nodes? Detailed Guide


Blockchain nodes have been increasing in popularity and have been the main point of discussion within the blockchain community. Each node plays an important role when it comes to a blockchain’s overall structure.

If you are curious what is a node in blockchain, we are going to dive into that today.

What Are Nodes? Detailed Guide

In any blockchain, its information would not be accessible if nodes did not exist. We are going to go over just about everything you need to know when it comes to what is node in cryptocurrency, as we look at how they work and what kind of types of nodes exist in the crypto sphere. Let’s dive in.

Key Points:

  • In the case of blockchain use cases, nodes are devices that are designated to keep a copy of the distributed ledger and serve the role of being communication points that execute a variety of different essential functions within the network. 

  • If you are curious what is a node in a blockchain, through nodes, users can gain easy accessibility to the blockchain’s ledger, and any activity that is carried on on the blockchain is mainly transmitted to the specific network’s nodes. 

  • When we dive deeper into whats a node in crypto, there are numerous types of nodes used throughout blockchain development, all of which play a specific role.

  • Users can manually create and run a node through the usage of their own hardware and internet connection, or they are also given the opportunity to connect to the blockchain-as-a-service provider NOWNodes as a means of connecting to a node within minutes. 

How Do Nodes Work?

Let’s go over what are nodes in crypto. To understand what is a crypto node and how a node works, we need to first understand how a blockchain network works. 

How Do Nodes Work?

The blockchain is a class of distributed ledger technology that functions as a decentralized ledger, where all of the transactions are stored. It is, by design, made to get copied onto multiple devices that are connected to the same network.

What this essentially means is that a chronological, as well as a complete record of every network transaction get stored across a series of devices, which are called nodes due to the fact that they keep the network fair, secure as well as immutable. This is what is a node in cryptocurrency.

Now, a blockchain node is a network’s stakeholder or a device that is specifically designed to keep a copy of the aforementioned distributed ledger. Furthermore, it serves the role of a communication point that can execute a variety of different functions on the network.

If you are still curious what is a blockchain node, when we dive deeper into what is a node crypto, the main goal of a node cryptocurrency is to verify the validity of every batch of network transactions, which are known as blocks. 

cryptocurrency nodes

Each node that is a part of the network has a unique identifier, so it can be distinguished. These are crypto nodes explained. As such, nodes for crypto exist to essentially ensure that the ledger is always accessible. If you want to run crypto node, this is a possibility. 

Now that we’ve covered what are nodes in cryptocurrency, let’s go over the differences between miners and nodes.

Confusing Miners and Nodes

There has been confusion surrounding miners as well as cryptocurrency node options.

Any Proof-of-Work (PoW) blockchain, such as Bitcoin (BTC), or Monero (XMR), for example, incorporates miners and cryptocurrency nodes.

  • Nodes hold a full copy of the blockchain network, which is the universal ledger system. They contain the complete history of all of the previous transactions within the network, and through the process of referencing the blockchain, they can ensure that the sender of a transaction will not spend the same amount of the cryptocurrency twice.

  • Miners, on the other hand, are also located on a global scale and compete to confirm pending transactions. Whenever a transaction goes from “pending” to “confirmed,” a miner has done their job successfully, and this enables the recipient of the transition to send it to another user afterward. Instead of confirming transactions one by one, miners will batch them together in blocks, where the confirmed block is then propagated across the entire network to all of the nodes, ensuring that the block is valid and follows the rules.
Confusing Miners and Nodes

Once the transaction is validated, the nodes then add the block to the previous block, forming a chain known as the blockchain.

These can be most commonly found as nodes Bitcoin blockchain, as BTC requires miners to get mined and as such, uses nodes cryptocurrency.

7 Types of Blockchain Nodes


Interested in learning about what are blockchain nodes, and the different types?

If you are still curious what are crypto nodes, there are numerous types of nodes spread out throughout the crypto space. However, they are typically categorized into seven types, and these include:

  • Light Nodes – these are by far the most lightweight node blockchain variations that are not required and do not hold full copies of the blockchain. They only download block headers and save users; as a result of this, download time and storage space. These do, however, depend on full nodes to function.

  • Archival Full Nodes – These are a type of node that is often referred to as a “full node.” The main role of this node is that they host the entire blockchain, which means that they have every single transaction recorded across the database. They are utilized to validate blocks and maintain consensus. 

  • Pruned Full Nodes – This is a type of node that saves hard disk space for users through the process of pruning older blocks in the blockchain. It needs to first download the entire blockchain; however, after that, it can delete blocks beginning with the oldest until the node only holds the most recent transactions in a pre-defined limit.

  • Mining Nodes – Miners can either be full or light nodes that aim to prove that they have completed the work required for the block creation process. To accomplish a goal such as this one, they need to either be a full archival node or get the data from other nodes.

  • Authority Nodes – These are the nodes utilized by the consensus algorithm for networks that are not fully decentralized, such as Delegated Proof-of-Stake (DPoS) or Proof-of-Authority (PoA). Typically, here the team behind the project can decide how many nodes are needed and who they are run by, or the community can also make votes.

  • Masternodes – master node crypto variations are nodes that cannot add new blocks within a network. They are only intended to validate and record the transactions. Running a master node gives users the opportunity to earn a share of the rewards within the network.

  • Lightning Nodes – These are utilized to establish a connection between a user that is outside of the blockchain, and this, in turn, enables off-chain transactions to occur. 

How Does a Blockchain Provider Work?

Blockchain providers, otherwise known as blockchain-as-a-service providers, handle all of the processes as well as activities that are required to maintain the blockchain infrastructure. 

How Does a Blockchain Provider Work?

They are typically services that will provide you with the required technologies and will set up the infrastructure required to run and manage blockchain-connected nodes. 

Blockchain Provider Selection Criteria

There are a few things that you need to keep in mind prior to selecting a blockchain provider, and these include:

  • How many nodes blockchain can be accessed through the provider.

  • Does the provider support and provide nodes for the specific networks you are interested in?

  • What are the accessibility requirements you have?

  • What kind of blockchain data do you require?

  • Is the connection and setup process simple enough to be completed within the span of minutes, so you can focus on development instead of connecting to a node?

  • Are the nodes secure, and does the service have customer support to assist you if you disconnect?

These are just some of the main criteria that you need to keep in mind.

Why Choose NOWNodes

NOWNodes is a blockchain-as-a-service provider that will provide you with the opportunity to get access to a high-quality infrastructure that is fast, cost-effective, and reliable.

Why Choose NOWNodes

NOWNodes offers nodes crypto are 24/7 under surveillance, and their availability and relevance are consistently being monitored and updated based on requirements. 

Through the utilization of the nodes available through this provider, you can get access to data surrounding the hash rate, difficulty, block height, wallet addresses, transaction data, balance history tickers list, or anything else that you need.

All you have to do in order to connect is to visit the NOWNodes official website, enter your email address, and click on “GET FREE API KEY.” Then, you can navigate to the official documentation and learn how to connect to one of the 58 available nodes through a simple API key.


Who Can Run a Crypto Node?

If you are curious about making a crypto node investment, anyone is given the opportunity to become a part of the network and run node crypto, assuming that it is a fully decentralized network that allows this functionality. 

Who Can Run a Crypto Node?

Some networks can be a bit more centralized, and the developers or community might be the only ones that can pick who gets to set up a node.

However, in open blockchains, this is available to everyone.

How to Set Up and Run Full Node

If you are interested in running your own blockchain node, here is what you can do.

  • Step 1: Pick a Network

All you have to do is pick a blockchain, for example, Bitcoin (BTC), Ethereum (ETH), as well as others.

  • Step 2: Get the Hardware and Software That Is Required 

You will need to gain access to all of the required hardware as well as software based on the specific guidelines of the network. 

Note that if you do not want to manually buy the hardware, you can also set up a remote server on the cloud and use the provider’s hardware instead. 

  • Step 3: Establish a Connection

You can start running the node. This process is different for every blockchain out there but will typically require you to connect your cryptocurrency wallet and hardware to software which can then make the hardware do its work.


Hopefully, now you know just about everything surrounding what are nodes in blockchain, what is a node cryptocurrency, how they work, how they are different from miners, and how you can get involved with connecting to one.

So if you were wondering what are nodes crypto, and how to earn crypto node, now you know the answer. You can also run your own blockchain node manually if you have the requirement as well as the desire to do so.