What is Node? How to Make Money Effectively From Running Blockchain Node

In the world of cryptocurrency, blockchain and nodes always go hand in hand like two inseparable links in the system. Not only playing a technical role, nodes are also a potential money-making channel with relatively low initial costs but requiring complexity in deployment. In this article, Allinstation will help you understand the concept of what a node is and how to run a node to create effective income when participating in the market.

What is a Node?

A Node is an electronic device (usually a computer or server) capable of:

• Receiving, processing, storing, and transmitting data in the blockchain network
• Validating transactions, storing ledgers, and sending information to other nodes

Each node is an element in the decentralized network of blockchain, ensuring transparency, security, and consensus.

How does a Node work?

The basic operation process of a node includes:

1. Receiving transaction requests from users
2. Transmitting information to validators or miners (depending on PoS or PoW mechanism)
3. Validators/miners confirm the transaction block and send it to all nodes
4. Nodes re-validate, and if valid, update in their personal ledger

Each node needs to maintain continuous synchronization to ensure the entire blockchain network remains consistent and secure.

• Popular VPS: Contabo, Hetzner, AWS, Digital Ocean
• Carefully read the configuration requirements for each project (RAM, CPU, Disk, Bandwidth)
• Layer 1 projects like Aptos, Sui typically require high configuration (>=16GB RAM)

Step 2: Node Installation

• Access the project's Github to get script and detailed instructions
• Or follow instructions on Allinstation / HC Gems
• Use Ubuntu 20.04 or 22.04 operating system for most nodes

Step 3: Checking and Maintenance

• Use various commands (depending on each project) to monitor status
• Follow the project's Telegram or Discord to update new configurations
• For example: Farcaster once increased configuration requirements from 8GB to 16GB

Step 4: Record Wallet Address / Key / Node ID

• Some projects require Discord connection, node verification for tracking
• Record logs, number of blocks, node hash as retroactive evidence

Summary

Running a node is one of the most sustainable and least competitive ways to earn money in Crypto if you have basic technical knowledge. Although it does not require large capital like token investment, effectively running a node requires you to persistently follow the project, update frequently, and maintain clear documentation.

If you are a beginner, start with free testnet nodes to understand the process. Once familiar, you can expand to validators or more specialized node systems.

This article is not investment advice. Please DYOR before deploying node activities.