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Blockchain Nodes

Beginner Level

Table of Contents

[What is a Blockchain Node? 1](#what-is-a-blockchain-node)

[Why Are Blockchain Nodes Important? 1](#why-are-blockchain-nodes-important)

[Let’s now explore the different types of blockchain nodes: 2](#lets-now-explore-the-different-types-of-blockchain-nodes)

[Types of Blockchain Nodes 2](#types-of-blockchain-nodes)

[Remote Procedure Call (RPC) Nodes 2](#remote-procedure-call-rpc-nodes)

[Full Nodes 2](#full-nodes)

[Pruned Full Nodes 2](#pruned-full-nodes)

[Archival Nodes 2](#archival-nodes)

[Light Nodes 2](#light-nodes)

[Lightning Nodes 3](#lightning-nodes)

[Supernodes 3](#supernodes)

[Masternodes 3](#masternodes)

[Validator Nodes 3](#validator-nodes)

[Staking Nodes 3](#staking-nodes)

[Authority Nodes 3](#authority-nodes)

[Mining Nodes 3](#mining-nodes)

[Oracle Nodes 4](#oracle-nodes)

[How to Choose the Right Node 4](#how-to-choose-the-right-node)

[A Sample Selection of Blockchain Nodes for Energy Communities 4](#a-sample-selection-of-blockchain-nodes-for-energy-communities)

What is a Blockchain Node?

A blockchain node is essentially a computer that hosts and operates blockchain software. Each node is interconnected within the network. Their main function is to ensure synchronization and data integrity.

Why Are Blockchain Nodes Important?

Nodes are crucial to the functionality of a blockchain, serving various roles. Some validate transactions and create blocks, while others focus on securing and maintaining the network or facilitating interactions between users and the system. Together, they ensure the decentralized and reliable nature of the blockchain technology.

Let’s now explore the different types of blockchain nodes:

Types of Blockchain Nodes

Remote Procedure Call (RPC) Nodes​

RPC nodes act as intermediaries, enabling external applications to interact with the blockchain. They provide an Application Programming Interface (API) that allows developers to read blockchain data and submit transactions. Instead of running their own node, developers can use RPC services to streamline dApp development.

Full Nodes​

Full nodes store the entire blockchain history and continuously update with new transactions. They validate every transaction independently, ensuring network security and decentralization. Running a full node requires significant computational and storage resources, as it maintains a complete record of all blockchain activity.

Pruned Full Nodes​

Pruned full nodes function like regular full nodes but discard older blockchain data beyond a certain point to save storage space. Although they do not retain the entire blockchain history, they still contribute to network security and transaction validation.

Archival Nodes​

Unlike pruned nodes, archival nodes store every transaction from the blockchain’s inception and do not discard any data. They are essential for blockchain explorers and data analytics applications but require substantial storage capacity to operate efficiently.

Light Nodes​

Light nodes provide a minimalistic approach to blockchain access. They do not store the entire blockchain but instead download only block headers – compact summaries of previous blockchain blocks – and relevant transaction data. Light nodes rely on full nodes for accurate information, making them ideal for devices with limited computing power.

Lightning Nodes​

Lightning nodes enable off-chain transactions. They facilitate fast and cost-effective transfers by establishing payment channels without requiring immediate on-chain recording.

Supernodes​

Supernodes are high-performance nodes with enhanced capabilities, such as network consensus modifications and high-speed transaction processing. They typically require superior hardware, high bandwidth, and consistent uptime, acting as relays between other network participants.

Masternodes​

Masternodes perform specialized functions within certain blockchain ecosystems, such as facilitating instant transactions and enabling governance participation. They require a significant cryptocurrency stake as collateral, rewarding operators with incentives for maintaining network integrity.

Validator Nodes​

Validator nodes are essential for Proof-of-Stake (PoS) blockchains, where they validate transactions and propose new blocks. They play a crucial role in securing the network and maintaining consensus. Validators must stake a certain amount of cryptocurrency to participate, with penalties for malicious behaviour.

Staking Nodes​

Staking nodes contribute to PoS networks by locking up cryptocurrency to support network security. While all validators are staking nodes, not all staking nodes actively validate transactions. Some staking nodes simply provide liquidity while earning rewards.

Authority Nodes​

Authority nodes are exclusive to permissioned blockchains using Proof-of-Authority (PoA) consensus. These nodes have pre-approved permissions to validate transactions and create blocks, making them ideal for private or consortium networks where control and efficiency are prioritized over decentralization.

Mining Nodes​

Mining nodes exist in Proof-of-Work (PoW) networks, such as Bitcoin. These nodes solve complex mathematical problems to create new blocks and validate transactions. Due to their high computational demands, mining nodes consume significant energy and often require specialized hardware like Application-Specific Integrated Circuits (ASICs).

Oracle Nodes​

They are specialized blockchain nodes that provide real-world data to smart contracts by fetching information from external sources like APIs, sensors, or databases. They enable smart contracts to interact with off-chain data, such as market prices, weather conditions, or energy consumption, triggering automated actions based on real-time events. Oracle nodes are essential for making blockchain applications dynamic and responsive to the external world.

How to Choose the Right Node

Choosing the right blockchain node for your network depends on several factors:

Network Requirements: Determine whether your network needs to validate transactions, store the entire blockchain, or simply access data. If you need full transaction validation and security, a full node may be ideal. If historical data access is required, consider an archival node.

Storage Capacity: Full and archival nodes require significant storage, while light nodes are more suitable for devices with limited storage and computing power, as they only store block headers and rely on full nodes for transaction data.

Scalability and Performance: If your network aims for high throughput and low latency, consider nodes designed for faster processing, such as those used in payment channels.

Security and Trust: Full and archival nodes offer greater security and trust since they independently verify transactions. Light nodes depend on full nodes for data accuracy but are less secure.

Budget and Resource Availability: Consider the hardware and maintenance costs for running full and archival nodes. Light nodes are more resource-efficient but provide limited functionality.

A Sample Selection of Blockchain Nodes for Energy Communities

Based on the blockchain needs of an energy community (EC), here is an optimal selection:

Full Nodes: Full nodes are essential for maintaining network integrity, validating every transaction independently, and ensuring decentralization. Since the EC's transactions need to be transparent, secure, and validated by all participants, full nodes are necessary for administrators or trusted entities in the community to verify the blockchain's activities and maintain its history.

Light Nodes: These nodes are ideal for smaller participants, such as households, with limited computing power. They can interact with the blockchain by connecting to full nodes and only downloading essential information. This setup ensures inclusivity while reducing the technical burden on participants.

Validator Nodes: Since the EC is likely to use a Proof-of-Stake (PoS) consensus model, validator nodes are critical for ensuring the validity of transactions, block creation, and maintaining the network's security. Validators are incentivized and play a central role in the decentralized governance of the energy ecosystem.

Oracle Nodes: These nodes are important for integrating real-world data into the blockchain, especially for dynamic processes like energy trading, pricing, and consumption. Oracle nodes will fetch real-time energy data – for example, production and consumption – and market pricing information, which triggers smart contracts for transactions in the EC.

This combination ensures the blockchain operates securely and efficiently, while also accommodating the needs of both small participants and larger entities in a decentralized EC.