{"id":8050,"date":"2020-02-05T22:49:05","date_gmt":"2020-02-05T20:49:05","guid":{"rendered":"https:\/\/forklog.media\/?p=8050"},"modified":"2020-02-06T02:12:00","modified_gmt":"2020-02-06T00:12:00","slug":"why-bitcoin-full-nodes-remain-unpaid","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/why-bitcoin-full-nodes-remain-unpaid\/","title":{"rendered":"Why Bitcoin Full Nodes Remain Unpaid"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Full nodes are the backbone of the Bitcoin ecosystem. They verify transactions, but also maintain decentralization and users\u2019 confidentiality. Yet, there is no direct monetary incentive for running a full node, which has its costs and risks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this feature, we take a look at the existing non-monetary incentives to set up and run a private node and the reasoning behind this apparently irrational design decision in the first cryptocurrency.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What\u2019s a Full Node?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A node in a distributed network is a connected device running certain software, serving as a point of interaction and connection. There are four types of nodes in Bitcoin: full nodes, supernodes, mining nodes, and light nodes.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Full nodes verify transactions and blocks in the blockchain. Each time a transaction needs to be made, full nodes check with the transaction history to see if the coins can be spent. Along with the actual instructions as to how to do its job, a full node stores the entire blockchain since the genesis block.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Supernodes, or listening nodes, are similar to full ones but have a lot more connections. They serve as relay stations to help full nodes communicate with each other.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Mining node is what it says on the box\u2014a node of a miner. These get the blocks of verified transactions, do the PoW computation, and build upon the longest chain in the blockchain.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Light nodes, also known as thin nodes, do not store the entire blockchain. They store just the block headers received from supernodes. Light nodes serve as endpoints in communication within the blockchain.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Since the device with a full node has to store the entire blockchain and communicate to a large peer-to-peer network, there are certain system requirements to meet.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Bitcoin.org <\/span><a href=\"https:\/\/bitcoin.org\/en\/full-node#what-is-a-full-node\"><span style=\"font-weight: 400;\">instruction<\/span><\/a><span style=\"font-weight: 400;\">, the recommended minimum spec for Bitcoin Core node involve desktop or laptop hardware with:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Recent versions of Windows, Mac OS X, or Linux.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">200 gigabytes of free disk space, accessible at a minimum read\/write speed of 100 MB\/s.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">2 GB of RAM.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A broadband Internet connection with upload speeds of at least 400 kilobits (50 kilobytes) per second.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Notably, you can <\/span><a href=\"https:\/\/twitter.com\/Bcoin\/status\/1217847686285549568\"><span style=\"font-weight: 400;\">run<\/span><\/a><span style=\"font-weight: 400;\"> a full node on a Tesla car.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All in all, running a full node in Bitcoin isn\u2019t free at all and requires a certain level of technical skill from the operator.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, there are certain problems associated with such nodes. For one, setting up such a node in a jurisdiction unwelcoming to cryptocurrencies is a risk. And even if the local laws are friendly, a full node can be targeted in case of a disruptive attack on the Bitcoin network.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Still, the network is working fine and there are at least enough full nodes for it to operate at the current scale.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Why Run a Full Node?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are two main reasons to run a full node. One is to voluntarily contribute spare resources to the network, the other is to have a trusted full node for one\u2019s own transactions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Any person or company using Bitcoin for transactions, speculations, or investing is interested in the good health of the network. Therefore, they are interested in having more devices to verify transactions and making the network more decentralized.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, for a business or a person that deals with Bitcoin, a full node is the way to achieve higher levels of privacy and security. Generally, by using a third-party wallet you rely on a service to relay your transactions back and forth. With a full node, you\u2019re in full control.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a bonus, a full node lets you choose the chain in case of a hard fork.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Why Is There No Monetary Reward?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Full nodes are no less important for Bitcoin than miners. Still, miners collect the transaction fees and block rewards while full nodes get no money whatsoever. The network wouldn\u2019t be possible without full nodes and it can\u2019t grow if there aren\u2019t enough of them.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Notably, even Microsoft <\/span><a href=\"https:\/\/www.microsoft.com\/en-us\/research\/publication\/on-bitcoin-and-red-balloons\/?from=http%3A%2F%2Fresearch.microsoft.com%2Fen-us%2Fprojects%2Fsocialalgs%2Fbitcoin-red-balloons.aspx\"><span style=\"font-weight: 400;\">suggested<\/span><\/a><span style=\"font-weight: 400;\"> adding the reward back in 2012.\u00a0<\/span><\/p>\n<blockquote><p><b><i>\u201c[Bitcoin\u2019s] cryptographic fundamentals have largely held up even as its usage has become increasingly widespread. We find, however, that it exhibits a fundamental problem of a different nature, based on how its incentives are structured,\u201d <\/i><\/b><i><span style=\"font-weight: 400;\">reads Microsoft\u2019s announcement.<\/span><\/i><span style=\"font-weight: 400;\">\u00a0<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Surely, this apparent unfairness should\u2019ve been addressed by now.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Right now, full node operators are basically getting only one reward, which is a trusted full node to use. There is no particular reason for messing with the code to run a \u201cbad\u201d node. Others won\u2019t listen to it, undermining the whole point of having a node. Moreover, there is no point in operating multiple nodes at once, as it is with mining. Whatever an operator does, no actions that would harm Bitcoin decentralization or the information processed are encouraged.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If a monetary reward for full nodes was to be introduced, the case would be entirely different. Now you suddenly have a reason to deceive the system and run as many nodes as you can without actually contributing to decentralization and fairness of the network. As one of Reddit users puts it:<\/span><\/p>\n<blockquote><p><b><i>\u201cIf you did it right now in a na\u00efve way, then people would just run one node connected to the Internet via thousands of IP addresses to get a lot of the reward,\u201d<\/i><\/b><i><span style=\"font-weight: 400;\"> the <\/span><\/i><a href=\"https:\/\/www.reddit.com\/r\/Bitcoin\/comments\/44prit\/eli5_why_cant_full_nodes_recieve_a_reward\/czsapq2\/\"><i><span style=\"font-weight: 400;\">post<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> reads,<\/span><\/i><b><i> \u201dit&#8217;s not clear how you would coordinate\/enforce this reward, since the state of the entire network isn&#8217;t global or in the blockchain.\u201d<\/i><\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">In order for a hypothetical Bitcoin with full node rewards to work properly, there has to be a system that would somehow prevent operators from cheating, which doesn\u2019t exist in Bitcoin. Notably, there are systems that reward full nodes, such as Dash, but this creates a whole new set of challenges.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is likely that Bitcoin as we know it will not have the monetary reward for full nodes, leaving this job for altruistic community members and businesses dealing with the cryptocurrency.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And if it was to change, it probably won\u2019t be the same Bitcoin anymore, anyway.<\/span><\/p>\n<p><b>Follow us on<\/b> <a href=\"https:\/\/twitter.com\/forklogmedia\"><b>Twitter<\/b><\/a><b> and <\/b><a href=\"https:\/\/www.facebook.com\/forklogmedia\"><b>Facebook<\/b><\/a><b> and join our <\/b><a href=\"https:\/\/t.me\/forklogmedia\"><b>Telegram channel<\/b><\/a><b> to know what\u2019s up with crypto and why it\u2019s important.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Full nodes are the backbone of the Bitcoin ecosystem. They verify transactions, but also maintain decentralization and users\u2019 confidentiality. Yet, there is no direct monetary incentive for running a full node, which has its costs and risks. In this feature, we take a look at the existing non-monetary incentives to set up and run a [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":8052,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"human_written","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,25,169],"class_list":["post-8050","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-blockchain","tag-nodes"],"aioseo_notices":[],"amp_enabled":true,"views":"545","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/8050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=8050"}],"version-history":[{"count":2,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/8050\/revisions"}],"predecessor-version":[{"id":8054,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/8050\/revisions\/8054"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/8052"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=8050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=8050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=8050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}