Ethereum Shared Node

Unlike the founder of Bitcoin, the founder of Ethereum is a well-known and public figure. Vitalik Buterin is called a child prodigy, as he developed his main project at a young age.

At the age of 19, Vitalik Buterin proposed the concept of a new digital currency in which many of the disadvantages of the Bitcoin cryptocurrency were eliminated. This happened in 2013. In 2014, enthusiastic users of digital currencies collectively funded the development, raising the equivalent of 18,439,000 USD (at that time 31,591 BTC). In mid-2015, the first genesis block of the new digital currency Ethereum was mined into existence.

Bitcoin relies solely on the proof of work algorithms, whereas, Ethereum depends on a combination of both proofs of stake and work algorithms. Also, Ethereum supports smart contracts, allowing you to develop and launch decentralized applications based on this cryptocurrency.

To run ETH node yourself, you need to download and install the software from the official Ethereum website. There are three different types of Ethereum nodes. Light ETH node in the Ethereum network is a computer or mobile device which has the Ethereum client software installed. The light Ethereum node only transfers transactions within the network similarly to Bitcoin networks.

Full crypto nodes on the Ethereum network not only pass on transactions but also check them. Checking allows you to ensure that the information on the transaction amount and the wallet balance of another member of the network is reliable. Nevertheless, full crypto nodes do not store the whole blockchain, meaning that they do not provide you with the history of transactions.

Archive crypto nodes in the Ethereum network are essential to those who have engaged in mining this cryptocurrency. Archived cryptocurrency nodes transmit, check transactions, and store the entire history of operations, including the history of execution of any smart contract on the Ethereum network. Moreover, the blockchain node provider enables to access the storage of the full archive of operations, which is necessary for programmers and developers.

The need to store large amounts of data has been a pressing issue for both Bitcoin and Ethereum. In the case of Ethereum, the node provider must contain at least 1 terabyte of free space for data storage of the archive node. Furthermore, Ethereum, unlike Bitcoin, has a transaction block size greater than 1 megabyte. Due to this fact, the crypto nodes provider faces the need to have a high bandwidth link as well.

Cryptocurrencies nodes on the Ethereum network check signed data packages, each of those is a single network transaction. It contains the wallet numbers of the recipient and the sender, the sender's signature, the VALUE field where the number of ETHs being sent is specified. The Ethereum transaction also constitutes the optional DATA field, where you can enter a text message and the values of GASLIMIT and GASPRICE. Because of the GASLIMIT and GASPRICE values, a floating commission rate on the network can be calculated.

Blocks in the Ethereum network are generated approximately every 15 seconds. This is much faster than the process within the Bitcoin network, where a block is generated every 10 minutes. That is why Ethereum developers try to unload the main blockchain in a variety of ways. Nodes management helps the developers achieve this goal. Sharding technology makes it possible to divide the Ethereum blockchain into separate parts. As a result, the ETH node stores and calculates a certain part of the blockchain instead of the entire distributed registry. In addition, the use of Plasma technology takes some of the operations related to the execution of smart contracts to separate blockchains connected via crypto nodes to the main Ethereum network. In Ethereum 2.0, the load on Ethereum nodes is expected to decrease as the proof of stake algorithm is used more widely.