1. Only Fullnode Owners Can Be Sure They Own BTC
Zu Monetary sovereignty also includes subjecting one’s own BTC holdings to validation. After all, anyone who trusts third parties such as wallet providers or even exchanges is disregarding the Bitcoin philosophy.don’t trust, verify“. Only BTC Full Nodes operators can dismiss the associated uncertainties and be sure of their ownership.
So who First Class Bitcoin Citizen wants to become, there is no way around a Bitcoin full node.
2. Verify transactions
Point two is perfectly related to point one. Because only those who operate a node can be sure that the payments received are actually bitcoins. Full nodes enforce the rules of the BTC network and reject any transactions that violate them.
Whoever owns Bitcoin implicitly accepts the associated consensus rules – full nodes enforce this consensus.
3. Network statistics
Setting up a Bitcoin node is also mandatory for analysts. Because if you have direct access to the blockchain – and that’s exactly the heart of the nodes – you get first-hand network data.
Average fees, hash rate, difficulty, mempool size – this is just a small selection of the huge possibilities to scan the blockchain for relevant data. Anyone who does not operate a full node is therefore dependent on third parties and has no means of verifying the accuracy of the data that has been launched.
Above all, Satoshi Nakamoto wanted to create an apolitical piece. As such, the 21 million coin limit is central to the BTC protocol. The bottom line: All network participants should be able to verify compliance with algorithmic monetary policy at any time – and this is not without trade-offs.
The most striking example is the loss of privacy in Bitcoin. If used anonymously, inflation bugs, for example, could go unnoticed for a long time and thus threaten Bitcoin’s value proposition at its core.
If Bitcoiners still want to achieve some level of anonymity, they should consider a full node. Because through centralized wallets such as Ledger or Trezor, Bitcoiners disclose all addresses and respective BTC assets therein. Only those who generate BTC addresses themselves using the full nodes can take the first steps towards a more private use of Bitcoin.
5. Full nodes support network
And yes, reason #5 is altruistic. Because the more nodes connected to the Bitcoin network, the more secure it is. Because as long as “honest” nodes can nullify attackers, Bitcoin is safe.
So if you operate a BTC node out of selfishness mentioned above, you also ensure a more robust system.
In short: operating a full node is the only way to use Bitcoin without the help of third parties. If you want monetary sovereignty, you have to set up a hub.
This article was published in January 2020. It has been checked and updated accordingly for republication.
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