Running a Full Bitcoin Node for Investors

The value of a cryptocurrency is only as secure as its network. Within the context of bitcoin, this security translates to validated and verifiably true transactions in the nodes operating in its network. But validating transactions in each node within bitcoin is a time- and resource-intensive activity. The drawback of this approach became abundantly clear last year when the number of transactions on bitcoin’s blockchain multiplied and clogged its network leading to delays in processing transactions. (See also: Will Rising Transaction Fees Bring Down Bitcoin Prices?)   

To overcome problems of this sort, bitcoin’s network is divided into lightweight nodes and full nodes. The former are quicker in processing transactions compared to the latter. They do not download all transactions on bitcoin’s blockchain and, in instances of downloaded transactions, speed is achieved by downloading only header data pertaining to those transactions. It is the responsibility of…