Node

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Revision as of 18:17, 31 January 2019 by 79.137.79.167 (talk) (Benefits and Rewards: added liquidity)
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A node is a machine in the Network. It processes (routes) payments. It needs to be managed.

Existing nodes

The big list!

Node roles

A node can be any of below roles at different times.

  • Origin node: Where a payment comes from
  • Hop: A node helping in processing a payment
  • Final node: The receiving node of a transaction
  • Peer: The Network consists of peers. Peers are two nodes communicating with each other.

Functionality

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Features

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Setting up a node

See Setting up a Lightning node.

Dangers and Risks

The risk of running a Lightning node is that private keys are online hence the node can be attacked and the keys and their corresponding funds stolen. The private keys nee to be online because the node needs to use them frequently to sign payment transactions.

Benefits and Rewards

Nodes help in routing. The more nodes there are the better and faster routing will work. So, there is a benefit to the network and to the common good. Nodes hold funds so they increase the liquidity of the system. With higher liquidity higher amounts of funds can be sent through the Lightning network.

Nodes can also charge fees for routing and hence earn money. See also Making money using Lightning.