Site icon Unocoin Blog

Bitcoin miners vs Bitcoin nodes

Miners and nodes work in lockstep to make Bitcoin work.

Since Bitcoin is decentralised, no central authority is in control. The entire system is governed by a set of rules that apply equally to everyone. Since it is based on cryptography, these rules involve doing a lot of math to keep the system going. The system is kept going by two kinds of entities — miners and nodes. Before we better understand what the two do, here’s a quick recap of some basic Bitcoin terms to help you understand it all better.

Bitcoin mining

After you send Bitcoins using a Bitcoin wallet, this transaction information is relayed throughout the network — passes from node to node (from a server to server) until it is transmitted to all the nodes.

After mining is complete, the miner sends the transaction info of all transactions mined along with the new block to all nodes. The information is relayed from node to node to reach all nodes. Miners get a transaction fee from users as a reward for securing transactions while the system also rewards them with Bitcoins that are generated anew with the creation of every new block.

Bitcoin nodes

As mentioned earlier, Bitcoin nodes are storage devices with access to the internet that store all the transaction data from the very start as a chain of information called the Blockchain.

The nodes function to relay transaction information from users to miners and also to store the Blockchain. Nodes synchronise with each other and even if a node is offline for some time, it’ll download the latest data from other nodes once it gains access to the internet. Also, the nodes check every transaction and hash generated by miners to see if transaction data corresponds to hash generated by miners. The nodes also confirm that all data complies with the Bitcoin protocol. Any aberrant transaction that doesn’t conform to the Bitcoin protocol is rejected. Once mined and added to the Blockchain, it’s very hard and costly (could cost as much as $30 billion to falsify one transaction) to change the record held by nodes.

Since there are thousands of nodes worldwide, the Bitcoin network is very hard to shut down. Any rogue node can be identified by comparing it with the rest and can be isolated quickly. Anyone with a storage device with sufficient space connected to the internet can run a node.

Both miners and nodes act in concert to enable the Bitcoin network and are the pillars on which Bitcoin rests. Together, they create a system immune to external manipulation, tampering or censorship and fulfill the promise of Bitcoin.

Also Read:

Exit mobile version