Crypto ELI5 Part 2: What is a node?

In Crypto ELI5, Cryptocurrency by Juan PortilloLeave a Comment

This is part 2 of a series of short cryptocurrency “explain it like I’m five” posts. If you’re just joining us, check out Crypto ELI5 Part 1: What is a blockchain?

This series of blog posts is meant for the absolute beginner in cryptocurrency. They are also meant to be concise and easy to understand. If you’re interested in learning about crypto, some of the history of crypto, and how to get started with using crypto, follow along! We’ll be adding a new post daily and each post will build on the one previous to it.

What is a node?

A node is a computer connected to and synchronized with a blockchain network. There are different types of nodes in each blockchain network with different responsibilities, but generally, nodes work together with other nodes on the network to validate transactions and blocks. Nodes also store a copy of the blockchain distributed ledger, a history of all previous transactions. 

A node can be a server running out of someone’s home or a server running in the cloud. In the cloud, the node takes the form of an instance running on a cloud service like Amazon Web Services or Digital Ocean.

An ideal node is highly reliable and secure.

Check out the next installment in this series: Crypto ELI5 Part 3: What is a distributed ledger?

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