A node is a copy of the blockchain that exists on a computer or other type of hardware device.
Where is it used? In the Blockchain technology. In other words, blockchain technology is literally a network of nodes connected to each other.
What’s the use of it? Support the network by maintaining a copy of a blockchain and sometimes even processing transactions.
- Any active electronic device can be a node including a computer, phone, or even a printer, as long as it is connected to the internet and as such has an IP address.
- Each cryptocurrency has its own nodes, maintaining the transaction records of that particular token.
- As the owners of nodes willingly contribute their computing resources to store and validate transactions they have the chance to collect the transaction fees and earn a reward in the underlying cryptocurrency for doing so.