Post 3. Know your Node

On one side we have the collective of people who are into cryptocurrency, and they buy and sell in the same fashion that most traders do on the stock market. Most people who know of, or at least heard about cryptocurrency speculate what the future value will be based on trends, news articles, congressional meetings, etc. But what if, on the other hand, I told you that there is a more substantial use for blockchain technology than market speculation? See, the concept of the technology to me is far more impressive and important than short-term gain on a P&L, even though that is important too. It is important to know the technology behind the project you are investing your money in.

The one piece of information you need to know is that “nodes”, for example “… are components of a blockchain network, facilitating decentralized transactions.” (What Is a Node in Cryptocurrency?, n.d.). This makes the node the most important component of a blockchain infrastructure as it is vital to its function. It is literally the mechanism that propels all crypto projects forward by validating and recording transactions, most of which now are done automatically via smart contracts. The blockchain network imposes a fee on every transaction that is facilitated on the blockchain, and this fee is called “gas” in the crypto industry. The fees are distributed among the node owners as rewards for participating in the operation of the ecosystem.