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When and how the Ethereum cryptocurrency works?
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.
Why do we need Ethereum node?
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.
What information is checked by the Ethereum node?
How to improve the Ethereum node?