How Bitcoin works
Nodes vs miners: how to take part without mining
What a node does
A full node is a program that fully validates transactions and blocks (bitcoin.org). In practice it does four jobs:
- Checks everything against the rules. Every block and transaction is tested: valid signatures, no coin spent twice, no block paying its miner more than the subsidy plus fees. Anything that fails is rejected, no matter who sent it or how much hashpower made it (white paper, sections 5 and 6).
- Keeps a copy of the chain. A full copy was about 776 GB on Oct 17, 2026 (Blockchair). A pruned node still checks everything but deletes old blocks, and can run in as little as 7 GB (bitcoin.org).
- Passes transactions and blocks on. Nodes relay what they’ve checked to their peers, which is how a payment spreads across the network (developer guide).
- Answers your wallet. Point your wallet at your own node and it checks your balance and payments without asking someone else’s server (Sparrow docs).
Nodes vs miners
People often use the words as if they meant the same thing. They don’t. Nodes enforce the rules; miners order transactions into blocks. A miner proposes the next block, and every node decides for itself whether that block is valid. A miner needs a node to know the rules; a node never needs a miner’s permission.
| Compare | Node | Miner (one ASIC) |
|---|---|---|
| Job | Checks every block and transaction against the rules, keeps the chain, passes transactions and blocks on, and answers your wallet. Enforces the rules. | Gathers waiting transactions, orders them into a candidate block and races to find valid proof-of-work for it. Orders transactions into blocks. Its blocks only count if nodes accept them. |
| Hardware | A spare computer, a small PC or a Raspberry Pi-class board with a 1 to 2 TB SSD. Bitcoin Core’s default setup needs 750 GB of disk and 2 GB of RAM is the minimum recommended (bitcoin.org); the chain itself was about 776 GB on Oct 17, 2026 (Blockchair), which is why 1 TB is the practical floor. | A purpose-built ASIC. Example: Antminer S21 Pro, 234 TH/s, 20 kg, needing a 220 to 277 V, 20 A circuit (Bitmain). |
| Power draw | A few watts to tens of watts. The official Raspberry Pi 5 supply tops out at 27 W (Raspberry Pi); Umbrel Home lists a 6 W CPU TDP (Umbrel). | Kilowatts per machine: 3,510 W at the wall for one S21 Pro (Bitmain). |
| Upfront cost | Free on a computer you already own. Ready-made boxes: Umbrel Home from $599 (Umbrel), Start9 Server One from $899 (Start9), both as listed Oct 17, 2026. | Prices move with the market and differ by reseller, so we don’t quote one. Add electrical work, cooling and hosting. |
| Running cost | Even at the 27 W supply limit all year, about 237 kWh, or roughly $43 at the U.S. average home rate of 18.31¢/kWh (EIA, July 2026). Plus internet: about 250 MB a day down and up to 5 GB a day up by default; upload can be capped (bitcoin.org). | About 30,750 kWh a year for one S21 Pro, roughly $5,630 at the same 18.31¢ home rate (Bitmain, EIA). |
| Noise and heat | Quiet. Umbrel advertises “silent operation” (Umbrel). | 76 dBA (Bitmain’s rated noise at 25 °C, Bitmain), and nearly all of the 3.5 kW comes out as heat. |
| Income | None. You pay a little to verify for yourself. | Block subsidy (3.125 BTC since the 2024 halving, Bitcoin Core) plus fees, shared by hashrate, minus electricity. Margins are thin; see the worked example below. |
| Who it’s for | Anyone who holds bitcoin and wants to check their own payments. Many home users run a node but don’t mine. | Businesses with cheap power, or hobbyists who want the heat and accept a likely loss. |
Electricity figures assume the machine runs all day, every day. Your rate will differ; check your bill.
Why most home users don’t mine: a worked example
One Antminer S21 Pro, using public numbers from Oct 17, 2026:
- The last 144 blocks (about a day at the 10-minute target) paid miners 452.29 BTC in subsidy and fees (mempool.space).
- The network was running at about 1,027 EH/s, a 3-day estimate (mempool.space). A 234 TH/s machine is about 0.00002% of that, so its expected share is about 10,300 sats a day, or roughly $8.39 at $81,384 per bitcoin (mempool.space).
- It uses about 84 kWh a day (Bitmain). At the U.S. average home rate of 18.31¢/kWh that costs about $15.42; at the U.S. industrial average of 9.77¢ it costs about $8.23 (EIA, July 2026).
- So at home it loses about $7 a day, and even at industrial rates it only roughly breaks even, at around 9.96¢/kWh. That is before pool fees, the machine’s price, cooling, repairs and the halving that cuts the subsidy every 210,000 blocks.
These are estimates: hashrate is inferred from block times, and price and fees change by the minute. The point stands either way: mining is an industrial business on thin margins, while a node costs a few dollars a year to run.
Why run your own node
- Privacy. A wallet that uses someone else’s server tells that server which addresses are yours. With your own node, those lookups stay at home (Bitcoin Wiki).
- Verification: don’t trust, verify. Your node checks that coins you receive are real and really confirmed, using the rules you run, not a company’s word for it (bitcoin.org).
- Rule enforcement. Your node never accepts a block that breaks the rules it runs. The cap of just under 21 million holds because nodes reject any block that pays more than the subsidy allows (Bitcoin Core). Every independent node is one more place those rules are checked.
Node software compared
Most nodes run Bitcoin Core. On Oct 17, 2026, bitdis.org counted 25,476 nodes, with Core at 83.55% (bitdis.org). Node counts are estimates from reachable and known peers, not a census.
| Software | What it is | Latest release |
|---|---|---|
| Bitcoin Core | The reference implementation, with a built-in wallet. Releases about every six months (Lopp). | v31.1, Jul 8, 2026 (GitHub) |
| Bitcoin Knots | A derivative of Bitcoin Core led by Luke Dashjr, with extra options and stricter default filters (bitcoinknots.org). Since version 29.4.1 (Sep 2, 2026), Knots follows a separate chain with a different proof of work (BLAKE2b), not the Bitcoin network that Bitcoin Core, exchanges and block explorers use. See below. | 29.4.2.knots20260508, Sep 21, 2026 (GitHub) |
| btcd | A full node written in Go, in production since October 2013, still labeled beta, with no wallet by design (README). | Active on GitHub, Oct 2026 |
| libbitcoin | A C++ Bitcoin development library with its own full node (GitHub). | Node 4.0.0 in Lopp’s Dec 2025 tests (Lopp) |
Sync speed differs a lot. On the same 2018-era test machine, a full check of the chain took Bitcoin Core 30.0 about 12 hours, libbitcoin node about 21 hours and btcd about 3.5 days (Lopp, Dec 2025).
The OP_RETURN and mempool policy debate, with dates
Picture block space as a cargo hold built for payments. One camp says anything that pays the fare can ride along; the other says the hold is for money and the rest should be turned away at the door. That argument first split the node software, then the chain itself.
The disagreement between Core and Knots started over policy: which unconfirmed transactions a node relays and keeps in its mempool. It later grew into a dispute over the rules themselves. Here is what each side has said and done, in order.
- Jun 6, 2025. Bitcoin Core contributors publish a statement: node software should aim to predict what will be mined, rather than refuse to relay transactions that “have sustained economic demand and reliably make it into blocks”. They add that this is “not endorsing or condoning non-financial data usage” (bitcoincore.org).
- Oct 10, 2025. Bitcoin Core 30.0 raises the default
-datacarriersize(the OP_RETURN data limit) to 100,000 bytes, which “effectively uncaps” it, and allows several OP_RETURN outputs per transaction. Operators can restore the old limit with-datacarriersize=83(release notes). - Knots’ position. Knots keeps tighter default filters on data-carrying transactions, for example turning on its token filter by default (release notes). Supporters say Bitcoin should stay focused on money; BIP 110 states its aim as correcting “distorted incentives caused by standardizing support for arbitrary data” and refocusing “on improving Bitcoin as money” (BIP 110).
- Dec 3, 2025 to May 2026. BIP 110, a temporary soft fork limiting data fields, is assigned a number, and Knots 29.3.knots20260508 (May 9, 2026) ships it as an opt-in setting (BIP 110, Knots release notes).
- Aug 8, 2026. BIP 110’s mandatory signaling starts at block 961,632. Nodes enforcing it split onto their own chain, which stalled, producing only a handful of blocks in the following weeks (CoinDesk); the BIP’s status was set to Closed on Aug 10, 2026 (bitcoin/bips #2245).
- Sep 2, 2026. Knots 29.4.1 makes a backward-incompatible change (a hard fork): its proof of work switches from SHA-256 to BLAKE2b, with a temporary 800 kWU block-weight limit. Its release notes describe this as mitigating “the biggest attack on the Bitcoin network to date” and call the SHA-256 chain “a new altcoin” (release notes). The project’s own site says the first BLAKE2b block was 961,640 on Aug 30, 2026 (bitcoin-blake2b.org); a pro-BIP110 site run by anonymous maintainers calls the network “Bitcoin BIP110” (bitcoinbip110.org), and one of its developers calls it the “Blake chain” (Bitcoin.com News). Bitcoin Core, exchanges and explorers such as mempool.space and Blockchair follow the original SHA-256 chain, which passed block 971,900 on Oct 17, 2026 (Blockchair).
What this means for you. If you run Knots 29.4.1 or later, your node is not on the same network as most wallets, exchanges and explorers. Coins held before Aug 8, 2026 exist on both chains, and ordinary transactions can be copied from one chain to the other (Knots 29.4.1 added an opt-in signature format, SIGHASH_UNIFIED; a payment signed with it is valid only on the BLAKE2b chain, while ordinary signatures still work on both; Knots FAQ), so be wary of anyone offering tools to “claim” or “split” coins. Never type your seed words into such a tool. Both projects are open source and you can read every change. If you want a stricter mempool on Core, its options still let you set one (release notes). Whatever you install, check which chain your node is following: compare its block height and latest block hash with a public explorer before you send or receive.
Easy ways to run a node
- Umbrel. umbrelOS is a home-server system with a one-click Bitcoin node app (GitHub, umbrelOS 2.0 released Sep 22, 2026). The Umbrel Home box comes with a 1, 2 or 4 TB NVMe SSD (Umbrel).
- Start9. StartOS runs a node and other self-hosted apps; Start9 sells it preinstalled on the Server One (Start9, GitHub). See our Start9 page.
- RaspiBlitz. A do-it-yourself Bitcoin and Lightning node for Raspberry Pi 4 and 5, with an optional display, MIT-licensed (GitHub).
- myNode. Plug-and-play hardware or free software (mynodebtc.com). Still maintained: version 0.3.50 was tagged on Oct 16, 2026 (GitHub).
- Bitcoin Core on a spare computer. No extra hardware: install it on a desktop or laptop you leave on (bitcoincore.org).
A short how-to
- Hardware. A 1 to 2 TB SSD (not a spinning hard drive), 2 GB of RAM or more, and an always-on internet connection. Bitcoin Core’s default setup needs 750 GB of disk, or about 7 GB if you prune (bitcoin.org).
- Download. Get Bitcoin Core from bitcoincore.org, or install a bundle above. Verify the signatures before you run it.
- Initial sync. Your node downloads and checks every block since 2009. Expect anywhere from about half a day on a fast desktop (Lopp) to roughly two to five days on a Raspberry Pi 5 with a good SSD (RaspiBolt), and longer on slow disks or connections (bitcoin.org).
- Connect a wallet. In Sparrow, open Settings, then Server, choose Bitcoin Core and click Test Connection. If Core runs on the same computer, add
server=1tobitcoin.conffirst (Sparrow docs). Node bundles show their own connection details.
Related
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Sources
- bitcoin.org: Running a full node (what a full node is, initial block download)
- bitcoin.org: Bitcoin Core minimum requirements
- bitcoin.org developer guide: P2P network
- Satoshi Nakamoto, Bitcoin white paper (2008)
- Blockchair API: Bitcoin stats (blockchain_size), read Oct 17, 2026
- Bitmain support: Antminer S21 Pro specification
- Raspberry Pi: 27W USB-C Power Supply (for Raspberry Pi 5)
- Umbrel: Umbrel Home specifications and price
- Start9 store: Server One
- U.S. EIA Electric Power Monthly, Table 5.6.A (July 2026 data)
- mempool.space API: reward stats, last 144 blocks (blocks 971,780 to 971,923)
- mempool.space API: network hashrate (3-day)
- mempool.space API: BTC price
- Bitcoin Core: GetBlockSubsidy in validation.cpp
- Bitcoin Core (official site)
- Bitcoin Core on GitHub: releases (v31.1, Jul 8, 2026)
- Bitcoin Knots (official site)
- Bitcoin Knots on GitHub: releases and release notes
- Bitcoin Core contributors: Bitcoin Core development and transaction relay policy (Jun 6, 2025)
- Bitcoin Core 30.0 release notes (Oct 10, 2025)
- BIP 110: Reduced Data Temporary Softfork
- bitcoin/bips pull request #2245: BIP 110 status set to Closed (merged Aug 10, 2026)
- bitcoinbip110.org: pro-BIP110 information site, anonymous maintainers (Sep 2, 2026)
- bitdis.org: node software distribution, read Oct 17, 2026
- btcd on GitHub (README)
- libbitcoin on GitHub
- Jameson Lopp: 2025 Bitcoin Node Performance Tests (Dec 30, 2025)
- RaspiBolt: Bitcoin client (sync time on Raspberry Pi 4 and 5)
- umbrelOS on GitHub (umbrelOS 2.0, Sep 22, 2026)
- StartOS on GitHub (Start9Labs)
- RaspiBlitz on GitHub (v1.12.1, Mar 3, 2026)
- myNode on GitHub (v0.3.50 tagged Oct 16, 2026)
- myNode (official site)
- Sparrow Wallet docs: Connect to Bitcoin Core
- Bitcoin Wiki: Privacy
- CoinDesk: Bitcoin's BIP-110 fork is 300 blocks behind BTC (Aug 11, 2026)
- bitcoin-blake2b.org: site of the Knots BLAKE2b chain (read Oct 17, 2026)
- Bitcoin.com News: BIP-110 supporters revive minority fork (Aug 31, 2026)
- bitcoin-blake2b.org FAQ: replay and SIGHASH_UNIFIED (read Oct 17, 2026)