<p><span style="font-weight: 400;">We discussed the role of nodes in the authenticity and execution of a transaction. But let us explore them further. Nodes are devices connected to the blockchain by independent companies or users. The computing power of the nodes is used to provide services to anyone interested in using blockchain. In theory, anyone can install the blockchain software and become a node but in practice, the computing power of the device and some other requirements must be fulfilled. These peer-to-peer nodes form the blockchain network. There are different types of nodes:</span></p>
<h3><strong>Full Nodes</strong></h3>
<p><span style="font-weight: 400;">The full nodes hold a copy of the entire blockchain ledger and ensure the correctness of the data. One full node holds all the information of a blockchain, including transactions and all the blocks. Full nodes also accept transactions and blocks from other full nodes to validate them and dispatch them to other full nodes in the network.</span></p>
<h3><strong>Light Nodes and Payment Verification</strong></h3>
<p><span style="font-weight: 400;">The light nodes only keep a copy of the block header and not the complete blockchain. They are also known as SPV nodes as they use the Simplified payment verification (SPV) method for transaction verification. They check the presence of a transaction in a block by using the information from a Merkle tree. The hash of the transaction is verified without downloading the entire blockchain. The functioning of light nodes depends on the information provided by full nodes.</span></p>
<h3><strong>Mining Nodes</strong></h3>
<p><span style="font-weight: 400;">Once the full nodes reach a consensus on a transaction, they announce it to the miners. The miner nodes are the ones who add the block to the blockchain, and the process is called mining. As only one miner can add a block to a blockchain, the miners must solve a puzzle to qualify for mining. The miner who solves the puzzle first gets to mine the block. The miner then communicates securely with other full nodes on the network. The mining software requires strong computing power to solve complex mathematical puzzles.</span></p>
<h3><strong>Incentive to Miners</strong></h3>
<p><span style="font-weight: 400;">Mining nodes or miners are the ones who create blocks and help in completing a transaction. A lot of computational power goes into mining the blocks and miners manage that on their own. So, there must be an incentive for them to spend money and other resources on mining.</span></p>
<p><span style="font-weight: 400;">A sender, one who initiates a transaction, sends information to the miner that is used to create a block. Keeping the information specific and minimum is a way to incentivize the miner. More information equates to more resources and the miner may choose another transaction in place of the one which has too much information.</span></p>
<p><span style="font-weight: 400;">Miners also get a transaction fee from the sender. The fee is added to the transaction in cryptocurrency. Block rewards are also a form of incentive for the miners who get cryptocurrency for every block they create. </span></p>
1000+ Courses for Free
Log in
If an account with this email id exists, you will receive instructions to reset your password.
Blockchain
Blockchain
Introduction to Blockchain Brief History of Blockchain What is Blockchain? Blockchain Versions Key Concepts in Blockchain What are Smart Contracts? Network, Nodes and Mining What is the Consensus Mechanism? What’s Double Spending? Resolving Conflict Privacy Management Types of Blockchains Blockchain and Cryptocurrency How to Buy Bitcoin Mitigating Attacks on Bitcoin Transaction Blockchain Opportunities Advantages of Blockchain Disadvantages of Blockchain Blockchain ConclusionNetwork, Nodes and Mining
< What are Smart Contracts?
What is the Consensus Mechanism? >
< What are Smart Contracts?
What is the Consensus Mechanism? >
Explore 1000+ Free Courses
Sign up
Setting up your account...
Loading...
Welcome to GL Academy!
We see that you have already applied to .
Please note that GL Academy provides only a small part of the learning content of Great Learning. For the complete Program experience with career assistance of GL Excelerate and dedicated mentorship, our Program will be the best fit for you. Please feel free to reach out to your Learning Consultant in case of any questions. You can experience our program by visiting the program demo.
We see that you are already enrolled for our
Please note that GL Academy provides only a part of the learning content of your program. Since you are already enrolled into our program, we suggest you to start preparing for the program using the learning material shared as pre-work. With exclusive features like the career assistance of GL Excelerate and dedicated mentorship, our is definitely the best experience you can have.
We see that you are already enrolled for our
Please note that GL Academy provides only a part of the learning content of our programs. Since you are already enrolled into our program, please ensure that your learning journey there continues smoothly. We will add your Great Learning Academy courses to your dashboard, and you can switch between your enrolled program and Academy courses from the dashboard.
We will add your Great Learning Academy courses to your dashboard, and you can switch between your Digital Campus batches and GL Academy from the dashboard.
We see that you are interested in .
Please ensure that your learning journey continues smoothly as part of our pg programs.
GL Academy provides only a part of the learning content of our pg programs and CareerBoost is an initiative by GL Academy to help college students find entry level jobs.
1000+ Courses for Free
Log in
If an account with this email id exists, you will receive instructions to reset your password.