The crypto ecosystem has positioned itself as a disruptive place in the centralized, traditional enduring finance architecture. This upcoming decentralized market is based on blockchain technology, whose basic infrastructure is supported by several nodes rather than an additional central authority. Blockchain nodes can be compared to smaller servers – their primary role is to store the data blocks that make up the blockchain network.
These decentralized nodes are connected and facilitate the exchange of the latest blockchain data to keep the network up to date. Simply put, a node is a support system in a blockchain environment. While the concept may seem technical, a node can be a computer, laptop or other device including a smartphone. Today, we have many blockchain networks such as Bitcoin, Ethereum and Dogcoin whose functions are facilitated by node validators.
In the process of node verification, resources such as memory and computational power are allocated to store data and to verify transactions that are added to the blockchain network. For example, the Bitcoin blockchain uses a proof-of-work (PoW) sensor, which requires miners to allocate resources and secure networks for transaction validation.
In return, miners are given network rewards for each block added to the blockchain. Currently, the Network Awards on Bitcoin Networks 2020.25 on BTC after half of May 2020. Similarly, Ethereum and Dogecoin blockchain networks rely on node validators to function effectively.
There are two main types of nodes; The former of the complete and light applies all the rules of a particular blockchain network, while the latter refers to the data of the entire blockchain nodes. With lightweight nodes, users can run a node without storing entire block data. However, these nodes are not as unreliable as complete nodes.
An expensive affair for short-term players
Running a blockchain node can be quite expensive for short-term players, despite the lucrative opportunities for crypto stakeholders. The Bitcoin blockchain, which is currently the largest, requires at least 2GB of memory and 500GB of SSD or HDD. In addition, node verifiers require a fast internet connection of at least 50 kbps, with Bitcoin’s blockchain scale averaging 1 GB per week.
Even meme networks like Dogcoin still run a whole blockchain node beyond the reach of full stockholders. Dogecoin’s network requires a node validator to have a free disk space of at least 50 GB and 2 GB of memory (RAM). This is quite widespread for most of the world’s population, considering that only a few have access to sophisticated devices that can handle the validity of nodes.
It’s no surprise that environmentalists are criticizing the power used to mine PoW cryptocurrencies like Bitcoin. Tesla’s Elon Musk was among the main critics. The company moves away from accepting bitcoin payments until miners prove that more than 50% of the energy comes from clean energy.
Switching to alternative blockchain networks
Today, the blockchain ecosystem has evolved as a feature of several networks where users can run cost-friendly nodes. Protocols such as Minima Global introduce ultra-thin blockchain environments that can fit on IoT or mobile devices. This decentralized network creates the possibility of an inclusive, scalable, secure, and resilient blockchain protocol that allows users to run complete builds and validations from their smartphone devices.
With 8.8 billion global smartphone users, Minima is looking at the potential of this growing market to further decentralize its blockchain network. In doing so, the protocol has created the possibility of a censorship-resistant blockchain network that is truly autonomous and accountable.
For a long time, the stagnant financial market has had to deal with the shortcomings of a centralized ecosystem. These include limited access to financial services due to some cumbersome KYC processes and other subtleties. Cryptocurrency is changing the narrative by introducing a decentralized ecosystem where everyone around the world can participate in one way or another.
This paradigm shift requires effective supporting structures, starting with the nodes that form the core of the blockchain environment. Therefore, it is only logical to make node validation a cost-friendly affair for crypto stakeholders. This will increase the likelihood of scaling decentralized aspects of existing blockchain networks.
That said, compatible upcoming blockchain designs for smartphones could provide a solid solution. Basically, building blockchain networks with mainstream adoption will probably accelerate the growth of decentralized networks. In addition, smartphone-compatible blockchain nodes offer a significant value for short-term players who have been victims of the current system.
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