What is a blockchain node? Complete Guide by NOWNodes

A blockchain node is a crucial element of any decentralized network, responsible for storing, verifying, and distributing blockchain data. Without nodes, cryptocurrencies and smart contracts wouldn’t function, as they enable transaction validation and network security. One of the most efficient ways to interact with a blockchain is through RPC nodes and endpoints, which allow developers, researchers, and businesses to send and receive data seamlessly.

Understanding how nodes work is essential for anyone involved in Web3 development. This guide will explore the role of RPC nodes, their practical applications, and how NOWNodes provides reliable infrastructure for blockchain interaction. Let’s dive into the details and see how you can leverage nodes for your projects.

Table of Contents

    What Is RPC in Web3?

    RPC stands for Remote Procedure Call. In the context of blockchain nodes, particularly in cryptocurrencies like Bitcoin or Ethereum, RPC allows you to interact with a node remotely, as the name suggests. Here’s a simple rundown of the pivotal points:

    • Remote: you can access the node from a different computer or location. You don’t have to be physically present where the node is running.
    • Procedure Call: You can call specific functions or procedures that the node provides. These functions can vary depending on the network protocol and the capabilities of the node software.
    • Blockchain Nodes: Nodes are essentially computers running software that enables them to participate in the network. They store a copy of the blockchain and can validate transactions and blocks.

    So, when you use RPC nodes, you’re essentially sending commands or requests to the node from a remote location to perform certain actions like sending transactions, querying information about the blockchain, or even configuring the node itself.

    How it works: request to Ethereum Node

    Let’s take a look at one example: An Ethereum node is a computer connected to the Ethereum network, maintaining a full copy of the blockchain, including all transactions and smart contracts.

    In an RPC context, a dApp acts as a client, making RPC calls to an Ethereum node (the server) to:

    • Query blockchain data
    • Send transactions
    • Deploy smart contracts

    This interaction enables seamless access to Ethereum’s functionalities, powering dApps, DeFi platforms, and other blockchain applications.

    • Query the balance of an Ethereum account.
    • Send a transaction to transfer Ether (the native cryptocurrency of Ethereum) from one account to another.
    • Deploy a new smart contract on the Ethereum.
    • Call functions within an existing smart contract to perform specific actions.

    In this scenario, the dApp acts as the RPC client, making requests to the Ethereum node (server) using RPC calls, and the Ethereum node processes these requests, executes the necessary actions on the Ethereum, and returns the results back to the dApp.

    What Is the Difference Between RPC Endpoint and Node?

    RPC endpoints are specific addresses or URLs through which you can access the Remote Procedure Call functionality provided by a node. These endpoints act as entry points for making RPC requests to interact with the node’s services and functionalities remotely. For example, blockchain nodes like Ethereum, RPC endpoints allow you to programmatically communicate with the node to perform various operations on the network. Each RPC endpoint typically corresponds to a specific set of functions or procedures that the node supports, such as:

    • Querying blockchain data
    • Sending transactions
    • Managing accounts
    • Deploying smart contracts, and more

    Also, RPC endpoints can use different transport protocols, such as HTTP or WebSocket. HTTP endpoints are accessed via HTTP requests, making them suitable for one-off requests or interactions. WebSocket endpoints provide a persistent connection, enabling real-time communication and updates between the client and the node.

    Authentication and authorization mechanisms may be required for accessing RPC endpoints to ensure secure access to node functionalities. This can involve providing API keys, access tokens, or other forms of credentials to authenticate the client making the RPC requests.

    In the case of an Ethereum node, examples of RPC endpoints include:

    • http://localhost:8545: This HTTP endpoint allows you to make RPC requests to interact with the Ethereum node running on your local machine.
    • ws://localhost:8546: This WebSocket endpoint provides a persistent connection for real-time communication with the Ethereum node.

    When configuring your dApp or client application to communicate with an Ethereum node, you specify the RPC endpoint(s) it should connect to. Then, your application can make RPC calls to these endpoints to perform various operations on the Ethereum.

    Developers interact with RPC nodes using Node APIs, which provide a standardized interface for making requests and receiving responses from the node. Data exchange between the application and the node typically occurs in the JSON format, a lightweight and widely-used data interchange format that is easy to parse and understand.

    What are the Nuances of RPC Nodes?

    To understand RPC Nodes better, you need to look into the different types and what makes each one unique. RPC nodes come in different types, each serving specific purposes:

    • Dedicated nodes: These are like private servers offering top-notch performance.
    • Private nodes: They limit access to certain users or applications for added security.
    • Shared nodes: These are like shared servers, offering a more budget-friendly option for multiple users.

    These nodes are crucial for various decentralized applications like wallets, DeFi platforms, and web3 development. To facilitate communication between applications and RPC nodes, various technologies are employed, including gRPC and Websocket. These technologies allow for efficient and real-time data exchange between the application and the node, enhancing performance and responsiveness.

    Diverse Usage of RPC Nodes in Web3

    For many users, RPC nodes are essential, although their operation is mostly automated. Often, the inner workings of these nodes remain unknown, especially when performing routine tasks in the cryptocurrency landscape. Here are some simple examples of RPC Nodes in action:

    • Sending a Transaction: Imagine you have a cryptocurrency wallet application on your phone. When you initiate a transfer of cryptocurrency from your wallet to another person’s wallet, your wallet app sends an RPC request to a node on the network. This RPC request contains information about the transaction, such as the recipient’s address and the amount of cryptocurrency to send. The node processes this request and adds the transaction to the blockchain.
    • Querying Blockchain Information: Let’s say you want to check the balance of your cryptocurrency wallet or view the details of a particular transaction. You can send an RPC request to a node on the network asking for this information. The node then retrieves the requested data from the blockchain and sends it back to you as an RPC response.
    • Executing a Smart Contract: In Ethereum and other networks that support smart contracts, you can use RPC to interact with these contracts. For example, if you have a decentralized application (dApp) that allows users to trade digital assets, you can send RPC requests to the Ethereum network to execute functions in your smart contract, such as buying or selling assets.

    Who Can Use RPC Nodes?

    RPC nodes provide a gateway for various users to interact with blockchain networks. While everyday users unknowingly rely on RPC when sending crypto, developers and researchers actively utilize them for more advanced functions.

    • Developers building dApps or DeFi platforms use RPC to query blockchain data and execute smart contracts. For instance, a trading dApp can interact with Ethereum smart contracts via RPC to enable asset transactions.
    • Blockchain researchers leverage RPC to analyze transaction histories, contract states, and other on-chain data for insights.

    In short, RPC nodes bridge users, developers, and researchers with blockchain networks, ensuring seamless interaction and data access.

    Start Your RPC Journey With NOWNodes

    For those who seek ‌development support in order to maintain the dApp or DeFi platform they like, NOWNodes comes right into the place. NOWNodes provides developers with access to a network of dependable RPC Nodes across multiple networks. This approach simplifies the process of building and deploying blockchain-based applications. 

    Whether you’re a seasoned developer or a burgeoning entrepreneur, NOWNodes offers a user-friendly interface and flexible pricing plans to suit your needs: 

    • Sign up for an account and verify it by email. No KYC required.
    • Choose a tariff plan. There are a variety of plans that fit any development needs, including a START FREE plan!
    • Explore the available RPC Nodes for their desired networks. 
    • Create an API key. On the “DASHBOARD” page find and click the “ADD API KEY” button.
    • Use the provided endpoint and the methods from the “DOCS” page to interact with the blockchain. 
    • Retrieve data. 
    • And execute transactions seamlessly. 

    With NOWNodes by your side, you can focus on unleashing your creativity and driving innovation in ‌decentralized development.

    Conclusion

    RPC nodes and endpoints are essential for seamless interaction within decentralized networks, enabling remote access to blockchain functionalities. They empower developers, businesses, and researchers to initiate transactions, query blockchain data, and execute smart contracts with ease.

    From dedicated nodes offering exclusive resources to shared nodes providing cost-effective solutions, RPC technology enhances flexibility and efficiency in blockchain operations. Developers building dApps, entrepreneurs exploring DeFi, and researchers analyzing blockchain data all rely on these nodes to drive innovation.