A node is essentially a computer on the blockchain that runs network software to recognize and broadcast valid transactions. Nodes communicate which each other and reach consensus, or a common agreement, as to which transactions are legitimate.
When we refer to blockchain being decentralized, it is a network of globally distributed nodes and miners/validators that gives it this property.
Other Blockchain Lessons:
What is money? Money is a technology that has been as essential to the development of civilization as the wheel itself. Money is any good that is widely accepted as a medium of exchange during the transaction of goods and services. It facilitates commerce by serving...
What is a blockchain? Distributed ledger technologies are based on a concept known as blockchain. The term “blockchain” refers to the basic structure that is a chain of blocks. The “block” in a blockchain is where transaction records or various pieces of information...
What is a smart contract? Smart contracts are computer programs that run on the blockchain. They are digital agreements encoded or written, with specific sets of rules that govern how and when the contracts will be signed, much like traditional contracts that are...
What is a consensus mechanism? Consensus refers to the act of coming to an agreement among individuals or groups. A consensus mechanism is the method by which decentralized networks agree on which transactions are valid before being confirmed as legitimate across the...
Proof-of-Work is the original consensus mechanism that is utilized by the Bitcoin blockchain. Bitcoin’s decentralization refers to the global network of nodes and miners that is responsible for broadcasting and confirming valid transactions; they are not controlled by...
Proof-of-Stake (PoS) was developed as an alternative consensus mechanism to Proof-of-Work. Proponents of PoS typically say that PoW is too energy and resource intensive. As a response, they developed Proof-of-Stake which aims to solve these issues inherent to PoW. In...
