How Anyone Can Run a Blockchain Node (And Why It Matters)
Setting up a blockchain node lets you actively participate in Web3 and decentralization, giving you direct access to a fairer, global financial...
Setting up a blockchain node lets you actively participate in Web3 and decentralization, giving you direct access to a fairer, global financial...
Blockchain technology and its native decentralized currency, cryptocurrency, are transforming the way we interact with digital assets. But did you know that anyone—not just developers or tech experts—can help secure and maintain a blockchain network? And what’s even better to know is, that is how it is supposed to function in the first place. By running a node, individuals contribute to decentralization while earning rewards. Here’s everything you need to know about running a blockchain node and its benefits, especially if you’re new to blockchain and decentralization.
A blockchain node is a computer, run by individuals or entities, that connects to a blockchain network like Bitcoin or Shardeum to validate transactions, store data, and help secure the system. Nodes play a crucial role in decentralization by distributing network operations across multiple participants instead of relying on a single central authority.
You’ve probably come across terms like “running a node,” “node operator,” or “validator,” often suggesting that even an average computer user can participate in blockchain networks and earn cryptocurrency rewards. But what does running a node actually mean?
Simply put, it involves using your computer’s resources—CPU, RAM, and storage (you can collectively refer them as a ‘node’ or ‘server’)—to validate transactions on a blockchain. If you don’t have the necessary or compatible hardware to run your node (via self-hosting), you can opt for a third-party hosting service (cloud providers).
In return, node operators typically earn rewards in the network’s native cryptocurrency, much like how banks process transactions through their authorized servers and personnel to earn compensation in fiat.
Public blockchains rely on consensus mechanisms to maintain security and integrity. For example, Bitcoin uses Proof of Work (PoW), where nodes compete to solve cryptographic puzzles. The first to solve the puzzle earns the right to propose a block of transactions (each block can store up to 4 KB in size) and is rewarded in BTC. The rest of the network must then reach consensus before the block is finalized.
Ethereum and Shardeum, on the other hand, use Proof of Stake (PoS), where validator nodes are required to stake a minimum amount of the network’s tokens and meet hardware requirements. In PoS, validators collectively validate transactions and reach consensus before adding the transactions/blocks to the blockchain (each block on Ethereum can store up to 1.5 MB). This process not only secures the network but also enhances decentralization while lowering entry barriers. If a validator acts dishonestly, some or all of their staked collateral may be penalized (slashed) by the network.
While it may sound complex, blockchain technology automates transaction processing, often completing the entire validation process in seconds. Nodes must remain connected to the network with high uptime and be properly maintained through regular software upgrades, much like keeping your computer system updated. You are expected to receive cryptocurrency rewards for your contributions.
Running a validator node typically requires an upfront investment, which varies depending on the blockchain network. Some networks allow lightweight nodes that only need basic computing power, while others require more robust hardware. The key investments include:
Once you’ve made the necessary investment in hardware, internet connectivity, and potential staking requirements, the next step is setting up and configuring your node.
Here’s a general overview of the steps to set up and run a node:
The first step is to decide which blockchain network you want to support. Each network has its own purpose, requirements, incentives, and level of decentralization. Choose a blockchain that aligns with your interests—whether it’s Bitcoin, Ethereum, or an emerging Layer 1 like Shardeum.
To run a blockchain node, you need reliable hardware and hosting to keep it online 24/7.
Before setting up your node, check the blockchain network’s documentation for minimum hardware requirements. Whether you choose self-hosting or a cloud provider, your server must meet these requirements to avoid performance issues. Typical hardware specifications include:
Blockchains like Shardeum, due to its advanced technology, enables users to run validator nodes with low end hardware configuration, while most others requires high end configuration/specialized hardware.
Like other online services such as websites and email, hosting is essential for keeping blockchain nodes online 24/7. Nodes must maintain continuous uptime and network connectivity to validate transactions, store blockchain data, and participate in consensus mechanisms. Choose a hosting solution that meets the blockchain’s minimum hardware requirements and aligns with your needs.
The second option—Node-as-a-Service (NaaS), also known as Validator-as-a-Service (VaaS)—allows users to operate nodes through cloud providers. These services simplify node deployment by handling much of the technical setup and ongoing maintenance. With NaaS/VaaS, users don’t need to manage physical hardware directly; instead, they leverage cloud-based infrastructure to keep their nodes running efficiently. This option offers a balance between convenience and supporting network decentralization
And if you're a beginner opting for a one-click node setup (a subset of cloud/VPS providers), you can skip the manual setup process and start running your node immediately after paying a service fee, with minimal effort required on your part. Due to their growing popularity, blockchain networks are increasingly partnering with these one-click node services to enhance accessibility and reliability for their community members. You can choose from well-known cloud providers like AWS, GCP, and Contabo, or explore newer Node-as-a-Service (NaaS) providers.
Blockchain networks provide official node software, which must be installed on your machine. This software connects the node to the network and enables it to validate transactions. The process typically involves:
To protect your node from cyber threats, security measures should be implemented. Some security guidelines would be provided in official blockchain documentations, while others are general best practices similar to those used for securing your online applications. These include:
Blockchains that use Proof of Stake (PoS) consensus or implement staking for Sybil resistance require node operators to stake tokens as collateral. This incentivizes honest behavior while deterring fraud and network manipulation. The minimum staking requirement varies by blockchain. Check the specific requirements, acquire the necessary tokens from the open market or designated platforms, and stake them on the network to activate and start running your node.
After setting up and staking your node, it must synchronize with the blockchain network by downloading and verifying past transaction data. The time required for syncing depends on the blockchain:
Once synchronization is complete, the node becomes fully operational and can validate transactions.
Blockchain nodes must be online 24/7 to earn rewards and contribute to network security. Key considerations include:
Once a node is up and running, it must be regularly updated to stay in sync with network upgrades. Maintenance also includes monitoring logs, optimizing performance, and ensuring security patches are applied promptly. Most blockchain networks provide official guides on how to maintain and update a node. These guides are usually found in their documentation, repositories, or support forums.
As Shardeum, a Layer 1 autoscaling blockchain, nears its mainnet launch, watch the video below to learn how to run a testnet node while balancing control and convenience with VPS providers—positioned between self-hosting and one-click setup.
Running a blockchain node may seem complex at first, but with the right setup, it becomes a rewarding and impactful experience. Beyond earning rewards—often considered a form of passive income—operating a node actively supports decentralization, enhances network security, and contributes to the blockchain ecosystem’s growth. As the ecosystem evolves with emerging layer 1s with breakthrough innovations, more user-friendly options are emerging, making participation accessible to non-technical users. If you’re ready to take your first step into Web3, setting up a node is a direct way to get involved and help shape the future.🚀
Unlike traditional financial systems that rely on intermediaries and gatekeepers, public blockchains like Bitcoin and Shardeum are open and permissionless. In centralized institutions, access to financial infrastructure or decision-making roles depends on being hired, creating barriers to entry for many. In contrast, public blockchains allow anyone to participate with just an initial investment and a willingness to learn.
Regardless of the blockchain you choose, you are contributing to a fundamental shift in power—one that puts control back in the hands of individuals. Do your own research (DYOR), take the leap, and embrace this change—it could be transformative, particularly for individuals in underdeveloped and developing regions, as Web3 and decentralization provides them with newfound access to the global financial system.
Disclaimer: This communication is strictly for information and educational purposes. It does not constitute financial, legal, tax or any other sort of advice. It shall not be construed as an offer or a solicitation to buy or sell any assets or to make any financial decisions. Purchase of SHM Tokens may not be suitable for everyone. The total amount used to purchase SHM Tokens may be lost. Further, this crypto-asset marketing communication has not been reviewed or approved by any competent authority in any Member State of the European Union. The offeror of the crypto-asset is solely responsible for the content of this crypto-asset marketing communication.
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