Operating A Node
Blockchain Nodes Reviewed
Blockchain networks consist of millions of individual computers around the world. These computers run sophisticated software which contribute to the data processing, computing, energy, and connectivity needed to support blockchain applications, securely store data, and confirm transactions. This is done through blockchain nodes.
Blockchain nodes are software applications that individuals install and operate on their personal computer. Nodes are operated and owned by private individuals. And node operators are rewarded for their contribution to the blockchain when they correctly operate their node. But it is important to remember that owning a node is not what gives you a reward. It is the operating of a node that will lead to rewards. Tokens are not given when a node is purchased. But through proper implementation and running of a node, rewards can be generated for the node owner.
The Howey Test
The Howey Test is what is used to determine whether a transaction qualifies as a “investment con- tract,” and then if that transaction is considered a security. Digital assets qualify as an investment contract if there is an expectation of profit. It is important to understand that in purchasing a node, and according to the Howey Test, a node is not considered a security. Tokens are not considered securities, because you do not get them until you run your node. Understanding how the Howey Test applies to any contract or transaction is important to investors and project backers. Some parts of cryptocurrency projects (such as initial coin offerings-ICOs) may be found to meet the definition of an “investment contract” under the Howey Test and are considered securities, thus subject to disclosure and registration requirements. But operating a node and the rewards gained from operating a node are not considered a security. That is a fundamental principle important to understand in operating a node.
Operating Your Node and Receiving Rewards
To install your node, ensure that you have the correct operating system. Node software is compatible with any MacOS, Windows, or Linux device. You can also operate your node software on a virtual private server. A good internet connection is needed and make sure your computer is not going to sleep, etc., but powering on for at least 6 hours a day.
To ensure that your blockchain node software properly supports the growth and stability of the blockchain by independently confirming transactions, securing data, and providing a decentralized network using advanced blockchain cryptography, check on your node to make sure it is functioning properly. Blockchain node software already includes a powerful and intuitive interface which allows you to actively monitor your node’s performance. It is up to the operator of the node to verify that their nodes are functioning properly. Regular routine maintenance of your equipment used to run your node will keep your node running smoothly.
By actively operating your node, you are then able to receive and track rewards earned. Blockchain node software operators are compensated in digital rewards as they support unused computational power on their personal computer or device. And unlike years past, where bitcoin mining took too much energy creating a large environmental footprint, the software used to run your node uses new improved technology that will no
Node operators contribute to the freedom and decentralization that comes from participating in blockchain cryptography. Remember to actively take part in the operation of your node ensuring that it is actively communicating with the network. You are making a difference and creating positive change in the world!
