Blockchain Networks Featuring Smartphone Compatible Nodes Are Gradually Changing the Game for Small Players
October 14 2021 - 1:53PM
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The crypto ecosystem has positioned itself as a disruptive niche to
the centralized, traditional finance architecture. This upcoming
decentralized market is based on blockchain technology, whose
fundamental infrastructure is supported by several nodes instead of
an overarching central authority. Blockchain nodes can be compared
to small servers – their primary role is to store the blocks of
data that make up a blockchain network. These decentralized nodes
are connected and facilitate the exchange of the latest blockchain
data for the network to stay updated. Simply put, nodes are the
support system of blockchain environments. While the concept may
sound technical, a node can be a computer, laptop, or other
devices, including smartphones. Today, we have many blockchain
networks such as Bitcoin, Ethereum and Dogecoin whose operations
are facilitated by node validators. Node Validation The process of
node validation involves allocating resources such as memory and
computational power to store data and verify transactions that are
added to a blockchain network. For instance, the Bitcoin blockchain
uses a Proof-of-work (PoW) consensus, requiring miners to allocate
resources for transaction validation and secure the network. In
return, the miners are rewarded with network rewards for each block
added to the blockchain. Currently, the network reward on the
Bitcoin network is at 6.25 BTC following the May 2020 halving.
Similarly, Ethereum and Dogecoin blockchain networks depend on node
validators to function effectively. There are two major types of
nodes; complete and lightweight. The former enforces all the rules
of a particular blockchain network, while the latter references
data from the full blockchain nodes. With lightweight nodes, users
can run a node without storing the entire block data. However,
these nodes are not as trustless as full nodes. An Expensive Affair
for Small-time Players Running a blockchain node can be pretty
expensive for small-time players despite being a lucrative
opportunity for crypto stakeholders. The Bitcoin blockchain, which
is currently the biggest, requires at least 2 gigabytes of memory
and 500 gigabytes SSD or HDD. In addition, node validators require
a fast internet connection of at least 50 Kbps, not to mention that
Bitcoin’s blockchain scales at an average of 1 GB every week. Even
meme networks such as Dogecoin are still out of the reach of most
stakeholders looking to run a full blockchain node. Dogecoin’s
network requires node validators to have at least a free disk space
of 50 gigabytes and 2 gigabytes of memory (RAM). This is quite a
stretch for the majority of the world’s population, given that only
a few have access to sophisticated devices that can handle node
validation. It is no surprise that environmental advocates have
been criticizing the energy used to mine PoW cryptocurrencies such
as Bitcoin. Tesla’s Elon Musk was among the leading critics. The
company withdrew from its position to accept Bitcoin payments until
miners prove that over 50% of the energy comes from clean energy.
Switching to Alternative Blockchain Networks Today, the blockchain
ecosystem has evolved to feature several networks where users can
run cost-friendly nodes. Protocols such as Minima Global introduce
ultra-lean blockchain environments that can fit on IoT or mobile
devices. This decentralized network creates the possibility of an
inclusive, scalable, secure and resilient blockchain protocol by
allowing users to run full constructing and validating nodes from
their smartphone devices. With the number of smartphone users
globally currently at 3.8 billion, Minima taps into the potential
of this burgeoning market to further decentralize its blockchain
network. In doing so, the protocol has created the possibility of a
censorship-resistant blockchain network that is truly autonomous
and accountable. Wrap Up For a long time, the traditional financial
market has had to deal with the shortcomings of a centralized
ecosystem. Some of which include limited access to financial
services due to cumbersome KYC processes and other nuances.
Cryptocurrencies are changing the narrative by introducing a
decentralized ecosystem where everyone globally can participate in
one way or another. This paradigm shift requires efficient
supporting structures, starting with nodes that form a core part of
blockchain environments. Therefore, it is only logical for crypto
stakeholders to make node validation a cost-friendly affair. This
will improve the chances of scaling the decentralized aspect of
existing blockchain networks. That said, upcoming blockchain
designs featuring smartphone compatibility could provide a solid
solution. Essentially, building blockchain networks with mainstream
adoption in mind will likely hasten the growth of decentralized
networks. Furthermore, smartphone-compatible blockchain nodes offer
a significant value proposition to small-time players that have
been victims of the current system. Image Source: Pixabay
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