You ought to use your own bitcoin full node

ByWealth Diagram

Bitcoin blockchain is a decentralized ledger that is duplicated and it’s independently maintained on an unlimited number of computer all over the world. Each of these computer has it’s own copy of the full blockchain.

On April 2021 the full blockchain size was 340GB, So each computer full blockchain was around 340GB. as time goes on, it’ll will increase in size. As of now, A full bitcoin node maintains a full copy of the blockchain which is around 500GB.

A ledger is a collection of accounts in which account transactions are recorded

Decentralized means not control by a single authority. it’s control by the many.

A full bitcoin node is a computer that maintains its own entire copy of the blockchain.

Interacting with Blockchain

It does not matter how you interact with blockchain, you still use a full node. So you either use someone else full node or your run your own full node.

Some examples of someone else full node are

  • Wallet of Satoshi
  • Blue wallet (allow you to create a lightning node on your phone but it’s their full node)
  • Metamask wallet
  • Breez wallet ( allow you to create a lightning node on your phone but it’s their full node)
  • Muun wallet

By using someone else wallet, you are using their full node to interact with blockchain with is basically verifying and sending transactions.

Isn’t full node the same as mining?

Yes and no, in order for you to be able to mine, you’ll require a full node. But when you mine you are finding bitcoins, each require a lot of computation and electrical power.

You kind of finding the answer to a question and then doing the verification and sending the transaction for that answer.

Mining try to solve extremely difficult cryptographical and mathematical problem.

On the other hand.

When you running a bitcoin full node. You already have the answer you just verifying and sending the transaction. So it use very little power, maybe like $10 per year. So you are able to run a full bitcoin node from a phone but you are not really able to mine from a phone.

Theoretically yes, if you wanted to you able to mine from a phone but is very likely that it would not be profitable. Mining requires a lot of power and high level equipment that are able to compute. That’s why people use computers or specify device for mining.

The reality is that you most likely won’t be able to compute with a phone, companies use full room of computers just to mine.

Hence, mining is a total different beast than a full node.

Why everybody is able to run a full bitcoin node

Any one with a computer and internet connect should be able to run their full bitcoin node. The power and equipment requirement is so little, that you can run full bitcoin node from a phone.

Since everybody is able to run a full bitcoin node with so little requirement, The blockchain is able to remain decentralized and up and running 24/07/365.

Quick notes

You ought to know the difference between

  • Wallets – to store coins , such as bitcoin
  • Contracts – transaction between two people to enforce financial agreements.
  • Multi-signatures – Two or more people require to approve a transaction using private keys.
  • Channels – tech to allow instant payments without guardianship within within two or more people.
  • Time lock – a thing that locks out a transaction until both people acknowledge the receipt
  • Hashed – input item of any length but the out put is a fixed length.
  • Main chain vs lightning network(every still is settle on main chain but smaller and faster).
  • Cold storage wallets like Trezor o keystone( recommended)
  • Software storage wallets like blue wallet (recommended, but is their full node)

Others

  • Generic wallet, wasabi wallet, sparrow wallet, BTCPay server wallet, Electrum wallets, exudus.

Why run your own full bitcoin node?

Why would anyone spend around $500 or less to run their own full bitcoin node.

  • Rule #1 of bitcoin is Trust no one, verify. Using someone else full node is trusting someone else.
  • If you use someone else full node, they have the ability to lock you out.
  • Blockchain cannot be hack, but a node can be tampered with. Hey is not your node.
  • Since someone node can be tampered with it, use real wallet. Not online wallets(coinbase, ops)
  • Privacy and anonymous. So no KYC(know your customer), No proof of ID’s.
  • To really understand bitcoin(1st layer). Sh*t, I’m still learning.
  • To really understand lightning network. Double sh*t.
  • Support decentralization by Supporting the network.
  • No one can’t take you money without your private key.
  • No frozen bank account because of default judgment, chew on that debt collectors.
  • Bitcoin cannot be shut down or hack. Unless someone can hack every computer at the same time!
  • You get credit for verifying the miners.
  • In a non-custodial way to have access to the unfettered lightning network(2nd layer)
  • The funds can be stored in kind of Payment channels
  • By routing transactions you can earn money on the lightning network.

Running your own lightning network also allow you to

  • Point of sale terminal
  • Ln bits wallet manager , to create sub-accounts for love ones.
  • you can also run BTCPay payment gateway
  • Many more …

Earn money routing transactions

By routing transactions you can earn money on the lightning network. You can create large channels and maintain liquidity in both direction.

What do you mean by both direction?

It’s simply the ability to send and receive payments on other channels. You become the middle man and act as an intermediary between the people that are trading bitcoins or trying to make payments.

And as the good Samaritan that you are, you charge every small percentage fee on the transaction on the amount routed for providing the liquidity services.

Privacy and anonymous

If you use someone else full node by using online wallets you are giving away your privacy. They know your IP address which will be associated with your wallet. (a solution is to use a VPN)

Same thing if you use a block explorer to search for transactions history. (a solution is to use VPN)

A solution, You can also installs your own block explorer using mempool.space on your own node to protect your IP address.

A solution use a Full bitcoin node, it act like a VPN.

A better solution Use both a VPN and a full bitcoin node. 😎

You might want to check getumbrel.com to do the full bitcoin node quick and easy

That’s it.

Take a calculated risk.

Now, start and adjust as you go.

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