Arweave TX
Almost everyone has heard about Bitcoin or cryptocurrencies. These cryptocurrencies are talked about a lot but have you ever wondered what makes these cryptocurrencies work so smoothly and generate decent profits?
What is the technology that backs this decentralised network??
This technology is called Blockchain and it is often referred to as the backbone of various decentralised networks. It is said that in the near future blockchain itself is capable of changing the way business is done today and blockchain hosting is just one of its uses. Before diving deeper into the topic, let us cover a brief about blockchain for those who are new to this concept or might have just started.
Blockchain is simply a distributed database or digital ledger that is used to store any kind of information online. This electronic data and information storage system is most recognised for its work in the storage of cryptocurrencies like Bitcoin, Ethereum etc. It assists in making transactions encrypted and safe and creates groups of data called blocks for storing this information. But where can a regular person locate a place to employ or make use of this technology?
You don’t have to worry since you will have a strong understanding of where and how to save and handle all of your transactions by the time you finish reading this article.
Blockchain hosting is a method for quickly storing and managing data. It refers to hosting data in a decentralised fashion. This hosting service is peer-to-peer, making it more dependable, secure, and challenging to hack into or change. It is neither a service provided by a third party nor one that is derived from a single company.
The most desirable service is that of storing data and information in nodes, linking them, and creating chains of such nodes. The ease of saving and retrieving makes it simple for users to utilise and offers a wonderful user experience. Since many businesses now provide this type of hosting service and are moving toward a more effective and safe method of information organisation, you may discover a variety of hosting platforms for your blockchain organising needs. Some of the well-known blockchain service providers are Ethereum and NEO. These platforms offer a variety of functionalities, such as Ethereum's Ethereum Virtual Machine (EVM), which may be run on the Ethereum Network.
Because nodes are essential to hosting, this kind of service is also commonly referred to as "blockchain node hosting."
What is the need for storing transactions using nodes if we can store the data on the server as well? From where & how did the concept of Nodes come into the technology?
That’s because the technology of blockchains doesn’t have a central server for storing and organising all the transactions as it is decentralised in nature. So, to cover up the use of the server for managing transactions or ledger, the concept of storing data on your local computers or systems all over the world came in, and these local systems or computers are known as Nodes.
These Blockchain Nodes are a very quick and effective component of blockchains since they can relay information about the data being stored as well as all the other concurrent operations taking place. They are used for storing the exact copy of the ledger & information about it. The user can view and retrieve digitally stored transactions more easily thanks to these nodes. Due to their decentralised mode of operation, these nodes, in addition to being quick providers, also assist users in saving time and money. There are two types of the node -
Used for storing only the headers of the blockchain & these nodes do not carry the whole weight of the ledger.
As the name suggests, these nodes are bound to carry the whole weight of the transactions & are also used for verification of all the transactions on the network.
Before choosing the type of node you require for your blockchain network, you must ascertain your needs. Then, you must get in touch with a preferred blockchain node provider that will take care of managing and storing your transaction data on the node. Because it will be difficult for you to construct and manage these nodes on your local server, these node providers are well known for their creation and maintenance of nodes. These node providers come in two varieties: those that are blockchain-specific or those that enable communication with several blockchains.
Till this point, you must have understood about nodes & their hosting in blockchain technology. Such hosting services are provided by many companies, one of them being Applied Blockchain.
Applied Blockchain(APLD) is famous for providing next-generations data centres & work with the focus of providing a boost to the infrastructural support to the Blockchain Industry. As the name suggests it works with the motive of making the application of blockchain technology smooth and efficient.
The firm of Applied Blockchain also promises the consumers a service of Hosting, which is readily known as Applied Blockchain Hosting in the market. This hosting service provided by APLD is very famous among the consumers as it works with the concept of hosting or controlling an individual node for your network, and it takes care and looks after any kind of fraudulent activity or if the transactions are being reordered, which ultimately provides you with better security and risk management. Even though a lot of such hosting services are present around the globe, still a lot of people think why pay a service provider for the same, why don't we create something of our own? Why don't we create our server & manage it?
Yes, you can build your server, but there are a lot of things to consider before you do, such as the cost of hiring the developer who will work on it, the cost of designing the server, the cost of deploying the product locally before pushing it to a production site, and the cost of maintaining the entire server. Things don’t limit till here, the cost of making such servers is large as they also involve a third-party system for hosting them. This sums up to a million dollars. Hence, people usually prefer using Web3 providers rather than their own network.
As the opportunities and demands for Web3 node providers are increasing day by day, it is also increasing the percentage of revenue this industry is generating annually. One such major source of income for the providers is the generation of Node. The node here we are talking about is the ‘Lighting Node’ as they are known for carrying out the most efficient way of providing or holding transactions. People are generating huge sums of profit using this method, where they are keeping the cost of their nodes menial, but their nodes are highly efficient enough on the network.
These nodes are promising in terms of service as well as a great source of passive income generators, but that doesn’t mean that you can just start creating your own Nodes. As the cost of generation & running these nodes is very expensive, such a massive amount of investment is not very easy for everyone to make but it can be afforded by companies working on a larger scale.
