What is a Bitcoin Node?

If you haven't watched The Trust Machine yet, now might be a good time. If you have, but forgot the bit about nodes, here is a quick summary:
  • Bitcoin transactions are recorded on the blockchain
  • Nodes keep a copy of the blockchain
  • Software wallets talk to nodes to check the contents of their wallets
Why should I run a node?
If you don't run your own node:
  • The node you use could lie to you.
  • The node you use could infer how much Bitcoin you have in your wallet.
  • The node you use could identify your physical location from your network traffic.

​Running a node adds your voice to the Bitcoin network, and helps keep the network decentralized.
How do I run a node?
​​The least technical solution is to run a node-specific OS, such as Umbrel, which makes it very easy to setup a Bitcoin node.
You'll need to buy a few things to run Umbrel. The full list of items can be found on their website, but a quick summary:
  • A Raspberry Pi 4B
  • Raspberry Pi power supply
  • MicroSD card
  • Raspberry Pi case
  • External Hard drive (such as Samsung T7)
There are plenty of videos on setting up Umbrel on YouTube. If you're in doubt, try the video from BTC Sessions.

Once you have it setup, you leave it running 24/7/365
What can I do with a node?
Once you setup a node, make your wallet software connect to your node. Now when you launch your software wallet, only your node will know you're looking at your Bitcoin. Only your node will know which addresses are yours.You can also get involved in the Lightning Network. This is that next level step you've been looking for.