Bitcoin grows stronger with nodecount touching all time high

07/19/2021

As per the latest data released from Bitcoin network tracker Bitnodes.io, on July 5 the number of reachable nodes clocked in at 13,374. Nodes running the Bitcoin Core software make up 98.77% of the number, with the remaining scattered across less popular implementations like Bitcore and Bitcoin Knots.

Bitcoin Core 0.21.1 was released back in May with a Taproot activation code, and at almost 5,000 nodes, it is currently the most utilized version of the software among entities running reachable nodes. Figures from Bitnodes put the number at 5,125, or 40% of the total network node count.

Bitnodes’ data also shows at almost half of the network node count is running on Tor. Back in January, only about a quarter of all reachable nodes were running on the hidden network Tor. Running a client like Bitcoin Core using Tor provides an additional privacy layer since the IP addresses of connecting nodes are obfuscated.

According to Bitnodes’ data, the network node count has increased by 2,739 nodes in the last year, reinforcing Bitcoin’s decentralization backbone.

Revisiting the Basics: What Is a Bitcoin Node?

A Bitcoin node is a program that validates transactions and blocks. There are different types of nodes ranging from a full node, a light node, and pruned full nodes. There are technical differences between each class, but Bitcoin nodes, no matter the format, assist in enforcing the network’s consensus rules.

Consensus rules are the set of conditions coded into the network. A Bitcoin node enforces these rules by verifying the private address and balance when sending a BTC payment. A full node is connected to a network of other nodes that form the distributed consensus network. A node does not have to trust other nodes for verifying payments. It validates them itself before broadcasting across the network.

Bitcoin nodes’ network quickly disregards a node that tries to propagate incorrect information by banning it for at least 24 hours or even longer, depending on the number of incorrect propagations.

So, what does more nodes means for Bitcoin?

Bitcoin doesn’t just need nodes; it requires lots of fully functioning nodes - that have the bitcoin core client on a machine instance with the complete block chain. The more nodes there are, the more secure the network is. The growth in the network node count also leads to the expansion currently taking place in the Lightning Network ecosystem where capacity has gone up over 70% in less than six months. Earlier in July, public Lightning Network capacity crossed 1,800 Bitcoin (BTC) after adding 100 BTC in less than a week. Data from Lightning Network statistics tracker Bitcoin Visuals puts the number of LN nodes at above 12,800, which is also an all-time high value.

Trade Safe and Earn Smart with Botsfolio

If you're still feeling all this is a little too much for you to take in, then sit back and relax. Let us do the heavy work for you. The Botsfolio gets you in the crypto trading game pro-style in 5 easy steps:

  1. Sign up
  2. Connect with or Create an account with a currency exchange
  3. Pick a strategy (we make it real simple for you to choose as per your goals)
  4. Start your trading bots and that's it.
  5. We'll take it from there.

Whenever you feel like, open the dashboard to track your investment fund taking shape and bringing in returns.

View Latest Value Performance of Trading Bots on our Platform.

You Might Also Want To Read

Which country is most interested in bit…

The country with the largest population in Africa seems to be interested in cryptocurrenc…

Microstrategy will pump another $500 mi…

MicroStrategy currently holds the most Bitcoin on its balance sheet out of all publicly t…

XRP Price Analysis - How high will it g…

XRP’s value has plunged by nearly 40%, from the peak of $1.70. This crash has cost many i…

Do you know any Bitcoin Billionaires in…

Since Bitcoin started the cryptocurrency revolution in 2009, the crypto space has grown d…

At $50B, Dogecoin market cap bigger tha…

Dogecoin (DOGE) has been making news in April. Initially, it was trading in its usual $0.…

Indians keep buying crypto despite a pr…

Quite recently, the Inter-Ministerial Committee [IMC], which was formed to understand cry…