What is the importance of running a node?

Philosophy
1

People seem to be fighting for the idea that every single person in the world runs a node. I don’t think many people will or will want to.

A lot of people on the internet seem to be arguing about node policy. I have never had a single one answer my question: Why should you be running a node?

I think any answers don’t really have any merit or bearing on one’s own security.

What does one get in regard to security or any other benefit from running a node?

If this thread lies empty…my point stands….

1 Like
2

Why should you be running a node?

To know, that the coin you use, is really Bitcoin, and not something else.

What does one get in regard to security or any other benefit from running a node?

For example, you can detect some mining pools, that can sometimes produce invalid blocks. If you would have just some SPV wallet, then you would happily accept a transaction, and later, it could turn out, that you didn’t get anything. Especially if some mining pool would tell you, that you got a lot of coins from some non-standard transaction. Then, by having only SPV wallet, you can be convinced to accept it, and when it will turn out, that it is invalid, it could be too late, if you for example send a real, physical product to some customer.

People seem to be fighting for the idea that every single person in the world runs a node.

Because there is no need for 100% of the users to run a node. Or rather: there is no need for 100% of the network, to have full, archival nodes, storing every single transaction since 2009. For example, it could be even beneficial, if Initial Blockchain Download would no longer require processing every single transaction, because then, the burden of storing some transactions, would be shifted from nodes to users, and if nobody cares about some spammy transaction, then it could be discarded entirely (and coins could still stay spendable, but they would require providing a valid proof, that some coins are there; and only someone, who has some inputs or outputs involved, could keep that transaction, without bothering anyone else).

I don’t think many people will or will want to.

Of course. In the same way, you can say, that most people wouldn’t read Linux source code, or even most of the Open Source code, that is actively used. But the ability to do so, is what is worth keeping. And the same here: as long as there are enough nodes, that can keep the network alive, other users can live peacefully on the edge of that network. Remember: nodes should be able to leave and join at will: it is not about having full, archival node. It is about the ability to do so, if needed.

Because in general, if you have a fractional reserve system, you can be left with nothing, if other people will get their cash before you. But in case of Bitcoin, it can be different, because as long as you can store a proof, that you have a given amount, then you can always get it, and move it somewhere else. The purchasing value of it can change over time, but if you have 1 BTC, then you have 1 BTC, even if the price can drop or rise.

3

No as a user you can just rely on a trusted node like an exchange for this. What is the benefit of running your own node? It’s pointless.

1 Like
4

you can just rely on a trusted node like an exchange for this

If you can rely on a trusted third party, then you can just use Signet. Or USD. Or anything, that existed before Bitcoin.

What is the benefit of running your own node?

The benefit is to trustlessly verify, that the chain is correct. If you don’t need that property, then you can trust systems, that existed years before Bitcoin. For example: chaumean e-cash

If you are OK with 10 or so individuals controlling the currency, then you can design a much better system than Bitcoin. For example, you can design a system using chaumean e-cash with the following properties:

  • 20 independent entities are designated as signers.
  • As long as a majority of signers are honest, the system remains secure.
  • The system has perfect anonymity. The signers cannot know anything about the flow of money.
  • Transactions are instant, requiring only communication with the signers and a small amount of computation.

If you want to preserve the mining mechanism, you can create a simple proof-of-work block chain which simply determines the current signers and creates coins. Users of the system would look at the most recent blocks only to determine the public keys and IP addresses of the current signers, and then use the system as previously described.

This system would be better than Bitcoin in several ways. But the point of Bitcoin is to be decentralized, so Satoshi rejected this idea (which has been well-known for over 20 years) and created Bitcoin instead.

So, if you want to trust exchanges, then simply make a signet, where “signet challenge“ could mean “1-of-N multisig of all exchanges“, and that should make things tick. Also, if you want to simply trust exchanges, then you probably need just a simple UI, like in banks, where there is no blockchain.

Also note, that centralized systems can exist on top of Bitcoin. Which means, that if you create a Bitcoin address with 20-of-20 multisig, and use it as a base for your off-chain transactions, then your “trusted signers“ can interact with the Bitcoin blockchain, and all of your users could simply trust these signers. Because any Signet can run on top of Bitcoin, it is just a matter of turning “signet challenge“ into a proper on-chain address.

5

I think the purpose of a node is mainly for professional.

If you want a high availability and custom txs options or program using Bitcoin then you’ll need to have a node to be efficient.

The topic is well positioned into Philosophy. For simple user, not as dev neither as company it’s only to support the network and understand a bit better how Bitcoin works. As individual the only thing you can earn is privacy by linking your Sparrow wallet or some lightning features for channels or electrum access. When you start into electrum (especially cli) I think that you are or becoming a dev on Bitcoin. So you fall into dev category for which it can useful.

Also if you want to run ord or simplicity indexer you’ll need to have a Bitcoin node.

Some devices hosting nodes (like umbrel home for example) offer apps on top of Bitcoin which can be useful for individual (non technical).

More Bitcoin will be developed more the users will have options and apps that can require a node to be fully functional. In some sense we can say that it’s a bet on the future to be more familiar with the future Bitcoin-app ecosystem.

Happy to have your feedback on this take.

6

Purpose of node is individiual self sovereign. Run your own node. ALWAYS !

7

lol self sovereign of what? Bitcoin blocks?

You do think that people will make their tx from cli and feel sovereign?

I think a node have a lot of purposes but for business first. Maybe some users can have an ideological interest but real use cases are for Business and dev first.

8

Do you want the benefits for yourself or for the network as a whole?

For the network, you help with decentralization. The vast majority of users don’t run a node, but everyone needs to connect to a node in order to get info from the chain. This creates a scenario where you have dozens of users connected and depending on few nodes, spending bandwidth and processing power. Remember, a node is aways receiving and broadcasting blocks and txs, from connected users and peers.

If nodes eventually become too expensive to run by plebs, we could have a doom scenario where the network implodes: people stop running nodes, making users depend on fewer nodes, making running nodes more expensive, making people stop running nodes.

For yourself, you get privacy. When you depend on a third party node, you need to tell them which info do you need. In a classic electrum style wallet, you will literally say “hey, do you have any UTXO on this adress, please?”, totally doxxing yourself if you don’t use something like Tor.

There are alternatives, like neutrino, where you send some clever filters that tells the third party to send a subset of the blocks, and so you search for txs in these blocks. In that way, the third party don’t know for sure your txs, but we have very few wallets implementing neutrino.

Another doom scenario I can imagine is the one you need to KYC yourself in order to connect to a node and get wallet info. Running your own node makes you sovereign.

At the end, I don’t think we need a world where everyone runs a node, but the possibility to run a node and a healthy users/nodes ratio is essential.

1 Like
9

When a few big governments ,instituoins run nodes and censor your tx & confiscate you with address blacklisting.

Why governments invest in Ai too much ?

You will that day understand what it means- RUN YOUR OWN NODE!