Nodes

A node is essentially a computer which is responsible for processing information and updating data on a blockchain. Think of a node as a teller at a centralised bank. The node is responsible for supporting the blockchain; it does this by processing transactions and keeping a record of all user information pertaining to money and/or data.

Like tellers at a bank, a node is also responsible for ensuring that funds entered into the system are legitimate. A bank teller does this by looking for counterfeit notes and making sure people don’t maliciously put fake money into the bank. The nodes within the system simultaneously check all of their records (cryptographic distributed ledger) against each of the other nodes records, and once all matches, the transaction is considered correct and added to the chain.

Of course these nodes do not operate for free, the job that they are performing is called ‘mining cryptocurrency’. If you own a miner, you will be the one receiving the fees that it earns for processing transactions and supporting the blockchain network.