Nodes… The Backbone of Blockchain Technology!
What do you say to a device that plays a critical part in the blockchain network?
It is said that Nodes/Validator nodes are the backbone of blockchain, and if you own a Node you can make money off it, whether the crypto market moves up, down, or sideways. This made me curious to delve deep into researching Node.
Nodes are small computer systems or raspberry pi that use their computational power to confirm these transactions and act as the physical hardware validation of this process., enabling the transfer of monetary value from location A to location B.
With millions of nodes running in the blockchain network, it is difficult to bridge the blockchain network, and a lot safer for everybody to trust the blockchain network and make a successful transaction.
When all the nodes in the blockchain connect globally it is called Consensus, an instance where every single node is cross-referencing each other while making sure that every network is in check.
These process keywords are general agreement, communication, togetherness, collaboration, unity, and decision-making.
The original consensus algorithm is Bitcoin’s proof-of-work (PoW), but over the years, proof-of-stake (PoS) has come to be the most dominant consensus algorithm in use by Ethreum, Polygon, and Solana blockchain among others.
Proof of Stake(PoS) only requires nodes also known as validators to lock up or “stake” tokens as collateral. These validators verify transactions on the blockchain network.
This is the simple logic of how the Validator Node works:
Validator nodes are said to decide which transactions will be added to the blockchain and in which order. During any transaction, if all parameters are accepted, the validator will pass the transaction to a Node which will add it to the blockchain.
Here are how you can invest or make money from Node:
There are many ways for Crypto investors to generate passive income, from lending crypto and staking crypto to running a validator node.
- Own a Node and apply as Validators:
Making money through setting up your own node could be a bit easier since you need little funds to buy a Raspberry pi and other stuff to set up.
What you need to consider is choosing a blockchain network(Ethereum), acquiring the right hardware(Rasberry pi) and software, and running and maintaining your node.
A node’s main function is to independently verify the state of the Bitcoin blockchain. It does so by downloading every block and transaction and checking them against Bitcoin’s consensus rules. If a transaction or block violates one of Bitcoin’s consensus rules, a full node will automatically reject it.
Once you applied, and you met all the requirements, and get accepted successfully on a particular blockchain then validators can set their fees and make money off it. Sometimes, automatically distribute rewards to validators and delegates.
Staking:
Node Validators will receive staking rewards in the form of the native token of that chain. Incentivizing users to stake otherwise, their holdings get diluted over time due to inflation.
Gaming:
Finally, there are recent projects where you can buy a Node and make money off it.
An example of this is a project like MetaPro Gaming(A web3 Defi gaming platform) called MetaPro index Nodes. Where you buy and own a node and you will earn a passive income daily.
This Node is on the Binance smart chain and you can make an estimated daily earning of 5.120 BUSD.
The earlier you acquire these nodes, the better and cheaper it is. It is recommended to invest as quickly as you can and know when to sell your node if you need to sell. You can also make your research on other gaming platforms.
Conclusively,
Nodes in the blockchain keep the network safe, without the Nodes, there will be no Consensus which means the blockchain network won’t be safe.
Instead of relying on a central entity to validate and store data for you, the governing infrastructure of a blockchain is a node, a device, such as raspberry pi, a computer, or a server, that validates and contains a full copy of the transaction history of the blockchain.
Thank you!
Author:
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