Excerpt
I explain the basics of a Bitcoin node, a software that runs on computers or specialized devices like a RaspiBlitz, to validate transactions according to Bitcoin’s rules. By running your own Bitcoin node you become your own bank. Nodes play a crucial role in maintaining the decentralized nature of Bitcoin, helping secure the network by storing all transactions and operating globally without centralized control. I distinguish between Bitcoin and Lightning nodes and briefly discuss different devices suitable for running these nodes.
Transcript
So, a Bitcoin node is basically a software that runs on a computer. You can use your PC or even a Raspberry Blitz and install the Bitcoin software there. And as soon as it is installed, the nodes are validating the transactions. So, the Bitcoin network and software has certain rules that must be followed. Otherwise, a transaction is not valid and is going to be rejected by the system. And the nodes are doing that work. So, in principle, it’s that way that only if you run your own Bitcoin node, you really know the truth. You then know that your software has not been manipulated or anything else. You are at the root. You are your own bank if you run a node. So, the nodes fulfill a very, very important role. They also store all transactions that have ever been made in their memory. So, I don’t know how many thousands, it’s tens of thousands of Bitcoin nodes globally at the moment, which secure the network. So, a Bitcoin miner is also a node, but it additionally runs these mining processes which a regular node doesn’t do. So, you can have a node on your computer and it doesn’t even have to be online all the time. So, if you turn off your computer and you turn it on the next time, the software downloads the transactions that have been done while the computer was offline. It downloads it onto your memory again and this is the blockchain. The blockchain is then on your computer. So, there are many thousands of blockchains on many thousands of computers in this software which is called a Bitcoin node. And this is also so important that everyone and anyone can run a Bitcoin node because this is making Bitcoin decentralized. So, for instance, if I run the Bitcoin software on my computer and you run it on your computer, someone can come and say, okay, you need to ban Bitcoin, everyone needs to shut down, but nobody knows that I’m even running it. So, this secures the network. And so, nodes play a very important role and the more nodes we have, the better it is, actually. And then there are Lightning nodes. But you don’t need to run a Lightning node to run a Bitcoin node. But if you run a Lightning node, you need to run a Bitcoin node. So the Lightning depends on Bitcoin. But Bitcoin doesn’t depend on Lightning. Do you recommend a special node? If I think you mean a Raspy Blitz or an Umbrel or a Voltage or something like that, I think the easiest to use is Umbrel. I’ve never used it myself. But I have used a Raspy Blitz a few years ago. I guess it must have been four years ago or so that I started. But I have to say, I stopped using it because then I started to nomade. I don’t have my own apartment. I can’t take a Raspy Blitz with me. And it was also not so easy, to be honest. The Raspy Blitz had to be updated. Then when there was a power outage, then it suddenly didn’t work anymore and things like that. I heard better things from Umbrel. But to be honest, I’m not informed what the newest nodes are and what the best is. With Voltage, I have to say, Voltage is a service where you can rent a Lightning node, basically. But my misunderstanding with that was that I thought they are also doing channel management. But in the end, you had to do your own Lightning channel management on the Voltage software too, which actually made only the hardware problems go away, but not the administration tasks I had regarding channel management. So it all sounds so easy, but then it’s not. But to be honest, with Phoenix or with Mutiny, you have a Lightning node on your phone. And that’s actually the future. And I’m very optimistic to see more of that in the near future. You don’t have to separate computer nodes. That depends. No, in principle not. But for instance, Lightning needs to be on all the time. And if you run that on a laptop, then you might not want to have your laptop on all the time. So that’s the reason why many people use separate devices for that.
