3.3 Network nodes and their roles

Blockchain networks rely on different types of nodes to function. Full nodes store the entire blockchain, light nodes store only headers, and mining nodes create new blocks. Each type plays a crucial role in maintaining the network's integrity and functionality.

Decentralization is key to blockchain's security and resilience. Nodes synchronize to maintain a consistent view of the blockchain, exchanging information about transactions and blocks. This process ensures network-wide consensus and protects against unauthorized modifications or attacks.

Types of Nodes and Their Roles

Types of blockchain nodes

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• Full nodes store the entire blockchain history validate transactions and blocks propagate valid transactions and blocks to other nodes (Bitcoin Core, Ethereum Geth)
• Light nodes store only block headers rely on full nodes for transaction validation suitable for devices with limited storage capacity (smartphones, IoT devices) verify transactions using simplified payment verification (SPV)
• Mining nodes participate in the block creation process solve complex mathematical problems to add new blocks to the blockchain (proof-of-work consensus) receive block rewards and transaction fees as incentives (Bitcoin miners, Ethereum miners)

Functions of node types

• Full nodes enforce consensus rules maintain the integrity of the blockchain serve as a source of truth for the entire blockchain history act as a relay point for propagating transactions and blocks
• Light nodes enable users to interact with the blockchain without storing the entire history verify transactions using block headers and Merkle proofs rely on full nodes for transaction broadcasting and block updates
• Mining nodes collect and validate pending transactions construct new blocks by solving the proof-of-work (PoW) algorithm broadcast newly mined blocks to the network for validation and acceptance

Decentralization and Network Synchronization

Importance of node decentralization

• Decentralization ensures no single point of failure or control in the blockchain network (51% attack resistance)
• Distributed network of nodes makes it difficult for attackers to compromise the blockchain enhances security and immutability
• Consensus among nodes prevents unauthorized modifications to the blockchain ensures data integrity and consistency
• Decentralization promotes transparency and trust among participants enables permissionless participation
• Resilience against node failures or malicious actors enhances fault tolerance and availability

Node synchronization and propagation

• Node synchronization ensures all nodes have the same view of the blockchain maintains network-wide consensus
• New nodes joining the network download the entire blockchain history from existing nodes (initial block download)
• Nodes constantly exchange information about new transactions and blocks through peer-to-peer communication
• When a new transaction is broadcast nodes validate and propagate it to their peers (transaction relay)
• Miners collect valid transactions construct a new block and broadcast it to the network (block propagation)
• Other nodes validate the received block and add it to their local copy of the blockchain (block validation and acceptance)
• Synchronization maintains consistency and enables all nodes to work with the latest state of the blockchain ensures real-time updates and data availability