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2024-05-27 01:44:57Table Of Content
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Content
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Conclusion
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FAQ
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Based on my personal experience operating a node in Nigeria for the past few years, I detail the associated expenses in this paper. In addition, I provide some cost-cutting recommendations in the hopes of attracting more users to the Bitcoin network.
Before exploring the costs involved: What is a bitcoin node?
The term "bitcoin node" refers to the software that establishes a connection to the Bitcoin peer-to-peer network. According to the network regulations, a node is responsible for receiving, validating, and broadcasting transactions and blocks to other nodes on the network. In a nutshell, nodes are Bitcoin's "messengers" and "rule keepers," as Ted Stevens put it.
The broadcast blocks contribute to a decentralised ledger that documents all Bitcoin transactions and tracks who has bitcoins and how much they are worth. Blockchain refers to Bitcoin's public distributed ledger.
Typically, a Bitcoin node is hosted on a desktop computer or a portable single-board computer (SBC) like a Raspberry Pi. It is also possible to run a node on a virtual machine or on a mobile device. Download Bitcoin Core, the most popular bitcoin node software.
Nodes can either be full or light.
A full node keeps a complete copy of the blockchain and checks each transaction and block against the consensus rules, starting with the very first block (the "genesis block"). To evaluate whether or not a block and its associated transactions are legitimate, full nodes must follow a set of rules known as consensus rules.
Archival nodes and trimmed nodes are the two sorts of complete nodes. Archival nodes are responsible for storing the full blockchain and relaying information to other nodes, which helps bootstrap new nodes. A pruned node will only save a certain number of blocks when verifying transactions and blocks.Therefore, trimmed nodes save more disc space than archival nodes. In contrast, pruned nodes are unable to provide access to the whole blockchain for other nodes.
There is a trade-off between privacy and decentralisation when using a lite node because it does not enforce the consensus rules and must rely on full nodes maintained by third parties to receive block data.
All subsequent references to "node" in this article will be assumed to be referring to a full node unless otherwise specified.
Why run a node?
Running a node has both individual and communal advantages. There are a few examples here:
Complete anonymity when sending and receiving bitcoin, checking the balance of your wallet, and researching blockchain information
The rules of the consensus are enforced, which protects the value of bitcoin and your investment. In addition, if you operate a node, you have the option of voting for or against any proposed modifications to the consensus rules, including soft and hard forks. Using Raspiblitz's motto, "Not your node, not your rules," as an example
Bitcoin network fortification Bitcoin becomes more decentralised and resistant to attacks from bad actors, governmental regulations, and "black swan" occurrences as the number of nodes on the network increases.
Improving one's familiarity with the inner workings of the Bitcoin network and disseminating that information to others
Now that we know some of the advantages, let's have a look at the expenses involved in maintaining a node in Nigeria.
HARDWARE
Ordinarily, a Bitcoin node is run on one of the following hardware configurations, as they all match the specifications set forth by the network:
Nodes that can be plugged in and used immediately or nodes that a user can assemble themselves
Plug and play node
Plug-and-play full node devices for single-board computers (SBCs) like the Raspberry Pi, RockPro64, and Rock Pi4, and small PCs like the Intel NUC and Librem Mini are available from some bitcoin companies. A few examples of such node suppliers are:
Among the many, MyNode, Raspiblitz, RoninDojo, and Start9 stand out.
The cost of a node varies from $300 to $7,000, not including taxes and shipping costs (which might add up to $100 for deliveries to Nigeria). Most Nigerian Naira debit cards now have a monthly spending cap of $20 for transactions made abroad, down from $100 previously. You can either use dollars obtained on the illegal market (currently 70% above the official rate) to fund a dollar debit card linked to your domicile, or you can use a virtual dollar card, which gives convenience but a higher rate than the black market, or you can use bitcoin.
There are further challenges that could prevent you from buying a node. To begin, not all node suppliers offer international shipping to Nigeria. Moreover, some of these items are unavailable because of widespread chip shortages. Node suppliers sometimes provide the option of self-sourcing node components and installing their own versions of bitcoin core embedded software on a self-assembled node as a means of getting around these problems.
DIY NODE
SBCs are more cost-effective than mini-PCs, so we'll solely consider them when obtaining hardware components. In order for an SBC node to function, the following hardware is needed:
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System-on-a-Chip + battery pack + card reader + solid-state drive + case
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Case and fan heat exchanger
As a result of the present chip shortages and high demand for single-board computers, prices have skyrocketed and supply shortages have occurred, especially for Raspberry Pis on a global scale, both in terms of new and used units. However, you can get your hands on a Raspberry Pi or a RockPro64 from AliExpress. Be aware of recently opened stores, check out customer complaints, and always ask for a refund if your purchase doesn't arrive in the time frame promised.
These SBCs can only be bought with a dollar card, as naira debit cards have a limit on the amount of money they may spend abroad. The average prices of hardware components on AliExpress needed to assemble fresh Raspberry Pi or RockPro64 nodes are summarised in the table below.
DATA
Before it can fulfil its role as a messenger and rule keeper, a node on the bitcoin network must be in sync with the other nodes on the network.Initial block download (IBD) is the procedure by which all blocks beginning with the genesis block are downloaded and verified. This means that there are currently about 440 GB of data stored in the bitcoin blockchain.
Network providers' typical data prices for the IBD and the roughly 5.3 GB needed each month to sync your node with the blockchain are summarised in the following table. The following paragraphs assume that you live in a region with 4G network coverage that is at least passable.
POWER
To keep things simple, I'm going to assume that you don't have access to electricity (like I do, for at least 80% of the year where I live) and that you'll have to rely on a solar generator to power your node and router. The subsequent average prices for duplicating a device like Chimezie Chuta's Spacebox are as follows:
CONCLUSION
There are many advantages to operating your own bitcoin node, some of which have already been discussed. Unfortunately, not everyone will be able to afford to run a node due to factors such as persistent chip shortages, inflation, and the cost of setting up a node (despite the assumptions and recommendations provided here to reduce these expenses). Arman The Parman's circle of trust concept or Obi Nwosu's guardians and users model, in which a technically savvy person runs a node for a trusted group of people like close friends, family, or a community, could be a workable alternative. While there is a cost to using this method, it is preferable to connecting to third-party nodes and helps solve the custody problem that has plagued bitcoin.
FAQs
How much does it cost to operate a node for Bitcoin? When compared to mining, the cost of maintaining a Bitcoin node is relatively low (about $150–$400). However, nodes are just as crucial to establishing decentralisation as miners are. Validating transactions is a key function of nodes.
What is the operational cost of a node? The monthly subscription and maintenance price for a Strong node is $14.95 USD (paid in ETH and +ETH transaction fees), in addition to the initial investment of 10 STRNGR tokens.
Why would I want to host a Bitcoin node? Having your own Bitcoin node means you can conduct your Bitcoin transactions in a more discreet and safe manner. Having access to a Bitcoin node allows users to independently verify their Bitcoin holdings. Adding a Bitcoin node to the network is easy and increases its security.
That's all for today
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