A component of a blockchain network that is designed to maintain the latest record of transactions and ensure compliance with the network rule. Nodes can be created by any participant, a feature that can enhance security of the blockchain and foster its decentralization. The purpose of a node varies according to the role or function required such as validation of transactions and generation of new blocks.

A node is a computer or terminal device connected to other devices which carries out certain tasks according to set rules and shares information with other connected devices. A full node is a computer in Bitcoin’s peer-to-peer network, which hosts a copy of the entire network and takes part in the synchronization process so that the entire network keeps functioning without disruption.

In other words, a node maintains the latest record of transactions and ensures that all participants operate according to the network’s rules. Nodes validate and process transactions without the need for a centralized structure, and hence bolstering the integrity and security of the network. On most blockchains, a node represents a single and standalone computer which stores all of the information recorded on the blockchain, functioning as a distributed ledger. Mutual verification can take place amongst nodes scattered across the network without the help of a central authority.

The addition of crypto nodes makes it more difficult to meddle with the entire system. Nodes operate by maintaining a storage of the complete history of transactions on a network. Upon addition of a new group of transactions, or a block, nodes submit the new information to each other as an update, ensuring consistency across the network. In short, nodes are designed to validate each other’s transactions, while maintaining a database of validated transactions in a distributed manner.

In addition to full nodes, nodes take many other types including light nodes, pruned nodes, archival nodes, and masternodes.