Topic: Worth running a node if you're a hodl'er? (Read 226 times)

No, it's not pointless to run your own node. Running your own node gives you the option to increase your own privacy by not linking all of your addresses together via your xPub key.

The CEX knows the address that you send to but if you're connecting to public nodes via Sparrow (yellow toggle in lower right corner), then the real risk of privacy loss is that you're giving away your xPub to random servers. When you generate a brand new wallet (seed Phrase) and you only connect to your own node with that wallet, only your own node will know that those new addresses all belong to the same wallet. That's the most important reason to run your own node imho. https://www.whatisbitcoin.com/culture/reasons-to-run-a-bitcoin-node

Yes but one of the main reasons to run your own node is to not give away your xPub key to any random bitcoin node out there.

Yes. Privacy is a network and thus has a network effect. Running your own node with substantially increase your own privacy while also marginally increase the privacy of other bitcoiners. The more of us who run bitcoin and transact privately, the more privacy we all have as a network of users. https://www.whatisbitcoin.com/privacy/how-to-use-bitcoin-anonymously

Not in my experience.

Yes but I don't know as much about a desktop like this since I run mine on dedicated hardware (Raspberry Pi)

No. It's pretty light. I run a node on a Raspberry Pi and it works great. I download 1 mb block every ~10 minutes and upload that same block to other peers. It doesn't take up much bandwidth or anything.

Yes, I would suggest that you run your node via Tor.

I can't speak to this directly but running a bitcoin node on Tor is pretty easy with some of the node services like Umbrel and Start9. I use both. https://www.whatisbitcoin.com/technical/how-to-run-a-bitcoin-node

FWIW, you should always use a VPN for online browsing and protecting your basic privacy. Your data is being monetized without your knowledge or consent and you're not getting any of the money. Don't just give your online ID fingerprint away for free. Make them work for it.

Congrats!

I can't remember having read if your node runs on Windows, MacOS or Linux. I want to encourage you to explore capabilities and what data you can query from your node.

There's usually an executable called bitcoin-cli which is used on the command line. If you're not familiar with the command line, well, how about to start getting to explore new things?

For a start you could execute bitcoin-cli help on the command line. Next could be bitcoin-cli help . You may find a rabbit hole...

Read the help of those RPC commands that catch your interest and you may have more questions to talk about.


Be careful if your Sparrow wallet has instructed Bitcoin Core to create an accompanying wallet to reflect yours. When this isn't a watch-only wallet, don't do stupid things while playing with RPC commands of your Core. (I don't think you're in trouble, because likely your Coldcard secures the private keys and your associated Sparrow wallet is just the watch-only part of it.

After a couple of days of syncing, I've finally got my full node setup on a 1TB SSD. Feels pretty liberating to finally see the green power icon/switch on sparrow instead of the yellow public one. Granted I'm still using a CEX so the anonymity benefits of running a node are mute, it still feels pretty neat to be able to verify my own transactions, and even better I can verify others and help out the network! Aside from the information window with things like connections, block height, etc, etc. Is there any neat bits on Bitcoin Core to look at? Things like how many transactions my node has personally verified or anything?

Anyways, just wanted to share with you guys that I'm doing my part and we've got another full node online! I literally have no one else in my life that would A.) care, or B.) even know what I'm talking about.

FWIW, ISP may play dirty by claiming "no data caps", while also stating "acceptable use" or "fair usage policy" on their ToS or disclaimer page. If your data usage exceed that, your internet connection would be slowed down or you'll receive warning email/letter.

As my main Bitcoin Core node and Electrum server run 365/24/7, I use a headless (no screen) Raspberry Pi 4B as a capable and low power hungry device. A Raspi 4B only burns low single digit Watts, so the yearly power cost is pretty low. The hardware wasn't expensive either and I needed it anyway. The "privacy" of my wallets is worth it for me.

Also, when I do some blockchain research or just am curious, it's handy to have first-hand data and do the data digging in my own local home network and not via some foreign services who could potentially log every request. Data privacy comes with a price I'm willing to pay.

To have more processing oompf, I also run a Core node on a laptop which consumes only around 9-11W on average (screen cover closed) when I'm not using it actively sitting at the keyboard and tossing the mouse around. It's my daily driver that runs on Ubuntu with a dedicated monitor attached when I use it. This Core node monitors watch-only wallets and when I need it for specific data digging in the blockchain.

Supporting the Bitcoin network is just an additional bonus. I don't highlight that, it's a given.

Hah, no sorry. by "taxed" I mean putting a lot of stress on something. For example "When I lift really heavy weights, it taxes my back pretty good" meaning it makes my back hurt. I don't mean the monetary tax on income in the literl sense, but thanks for the reply! XD XD

Hey Solo6R, I don't know if I have understood it correctly. I think that you only mean how much it can deteriorate the computer, but as you used tax word twice and I understand something very different about what that means, I would like to let you know that, in some jurisdictions (in mine, for example Spain) simply turning on your computer to mine is a taxable event and it doesn't only mean that you have to pay taxes on profits, but also register as a self-employed worker and pay a monthly fee of over 300€, no matter how much you mine. It makes no sense, but that's what it is.

In respect of running a node, however, I don't think any requirements have to be met, so I don't think you'll have any problems, regardless of your jurisdiction.

Ah, very well. Yeah I've already got the system to run it on, with no data caps up or down, so no issues there! Cheers and thanks for the clarification. Although now that you say that, I wonder if my ISP would go nuts when all of a sudden I have TB's of data going out, hah. Guess we'll find out, but "No Data Caps" is "No Data Caps" so we'll see if they stand by their word eh? But now that you mention that. Would allowing fewer peers just mean fewer people/transactions will be using your node to verify transactions? What is the number of peers set to by default, and what would one set it to, to lessen the hit on data? What did this lad in your example end up having to set it to?

Data cost, I mean internet cost which is different from one place to another and in some countries even you have to pay a lot just for 1 or 2GB data but since you mentioned you are already up then I assume the data cost is not the problem and hardware cost isn't there any if you have already a machine with decent specs but even if you have unlimited data you still have to worry about outbound there was recently someone complaining he is consuming terabytes just for a week or less than that in that case you need to restrict the peers.

As I stated reasons to run a full node, and benefits from a full node in my post, running it or not, using it or not, it depends on your need. Different Bitcoin users have different needs and some people even have very terrible practice to store their bitcoins directly on custodial, centralized platforms, without access to private keys.

With you, you already used a non-custodial wallet, that is first good practice step. The next phase, is running a Bitcoin full node, to gain better privacy.

If you are still worrying about importance of Privacy, there are many resources to read.
https://www.lopp.net/bitcoin-information/privacy.html

Even if you use CEX, using private full node still prevent random server (which used to obtain relevant TX) to know list of your addresses.


Unless your country or ISP intentionally block Tor, it's not that hard. Bitcoin Core provide guide to use Tor which can be seen on https://github.com/bitcoin/bitcoin/blob/master/doc/tor.md.

Ah very well. Thanks! I should have a full node up in about 27 hours! Just doing my part! Cheers!

And I mean, if you're able to do that without any problems on your end, you can do that as you please. When we say about affordability, it's not always about the cost but your availability to do that.

So cheers to you OP as well and I wish the best for you for supporting the network by doing this.

And this is what I'm confused about. Where is the cost? It's not mining, so where is the cost? I'm just using an extra 1TB SSD I had laying around, so there is no additional hardware cost, and it's being ran on a computer I'm already using. So unless there is some hidden cost associated to just leaving Bitcoin Core running to strengthen the network (which sounds awesome by the way), then I have to wonder what you mean by "afford" it. Cheers!

There you go.

That's the whole point of it, you get to contribute to the network and help yourself as well. I don't plan to run one yet but based on those who ran it a long time ago and I've seen it, a few words as said.

"If you want to help and contribute to the network without expecting any return, run a node". So if you can afford to run one and you're optimistic about it, do it.

As stated in my post, I'm quite familiar with self custoy and right now I'm using a Cold Card Q paired with Sparrow. But I'm planning to run a full node now to contribute to the network. I'm about 40% synced now.

With a Bitcoin holder, you need private keys to hold your bitcoins safely and hold it by yourself, with full control. To do this, you need to use a non custodial wallet, that should be open source too. That's it.

If you need to gain privacy, you can consider to run your Bitcoin full node, but it is a different thing for consideration. If you don't care about privacy, you don't need a Bitcoin full node runs by yourself.

However cost to run a Bitcoin full node is not too expensive and you can afford to do it.

[GUIDE] The simplest Full Node guide ever.
[Guide] How to run a Bitcoin Core full node for under 50 bucks!

It depends on the person who do this because running a node doesn't let you earn btc but it does help yoi validate transactions since you run your own node which you can benefit where you don't have to wait for your transaction getting validated. Tor will help you increase your privacy which many people would suggest since privacy is important to start with. Things would be different if it's about mining since mining have incentive and also cost for running it and for the mining rig.

The major benefit is privacy and self reliance.
Since you are sending from a CEX, having a node wouldn't mean much because the transaction would be broadcasted by the exchange.

Unlike Mining, Running a full node is not taxing to the GPU except during the initial sync where you have to download the data's in the blockchain, I think it's almost 600GB now
nor is it harmful.
After the downloading and sync it barely used your RAM and could even allow playing of games.

The essence of Tor is the boost privacy and hide IP's but the drawback is it's quite slower than Normal.

I'll tell you my main reason why I run at least one Bitcoin Core node and my own Electrum server: I don't want any other foreign Electrum server to know all my wallet's used addresses, period! Simple as that.

If you use a "light wallet" like those SPV variants that talk to an Electrum server to inquire transaction history of every used address in a wallet, you give away all your wallet's used addresses. The Electrum server your wallet talks to may not care, but it can also be a blockchain intelligence company's Electrum server or whatnot.

I care about the privacy of my wallets, I don't want any foreign Electrum server to be able to aggregate addresses belonging to a specific wallet.