malickatique / bitcoin-notes

BitCoin - Decentralized

1. How it is connected?

It is connected via P2P Network. Each device act as a Node.

2. What a Node can do?

A complete node can do folloqing four functions;. i) W allet ii) M iner iii) B lockchain (Full BlockChain Database > 300 GB) => Full Nodes and Subset of Node iv) N etwork routing

i) Wallet

• User wallets might be part of a full node.

ii) Miner

• Mining Nodes compete to create new blocks by running specialized hardware to solve the proof-of-work algorithm.
• Can be either Full Node sor Half Nodes.

iii) BlockChain

• Full size of BlockChain exceeds 300 GB.

• Some Nodes have a full copy of BlockChain entire transctions. And can verify a transaction authoritatively.

• While some nodes only have a subset of BlockChain transactions known as lightweight or SPV Nodes. Do not have a full compy of BlockChain

• SPV (Simplified Payment Verification): SPV Nodes can verify transactions by external communication.

iv) Network Routing

• Main Bitcoin-P2P-Network, running the bitcoin P2P protocol, consists of between 7,000 and 10,000 listening nodes.
• Servers and Nodes running other network protocols than Bitcoin-P2P-protocol.
• These nodes act as network edge routers, allowing various other services
• (exchanges, wallets, block explorers, merchant payment processing) to be built on top.

#Types Of BitCoin Networks

1. Reference Client (Bitcoin Core)

• A Wallet
• Miner
• Full Blockchain database
• And Network routing node on the Bitcoin P2P Network.

2. Full Block Chain Node

• Full Blockchain database
• And Network routing node on the Bitcoin P2P Network.

3. Solo Miner

• Miner
• Full Blockchain database
• And Network routing node on the Bitcoin P2P Network.

4. Lightweight (SPV) Wallet

• A Wallet
• And Network routing node on the Bitcoin P2P Network.

5. Pool Protocol Servers

• Gateway routers connecting the Bitcoin P2P network to nodes running other protocols such as pool mining nodes or Stratum nides.

6. Mining Nides

• Contains a Mining Function
• With a Stratum protocol node (S) or other pool (P) mining protocol node.

7. Lightweight (SPV) Stratum wallet

• A wallet
• A network on the Stratum

*** The extended bitcoin network contains various node types, gateways, and protocols ***