Similar to how Web 2.0 relies on data centers to provide the backbone for applications, blockchain technology needs nodes to keep the network humming along. Nodes verify transactions and secure the network, making them a critical part of any blockchain infrastructure.
Why Should You Set Up A Node?
Setting up a blockchain node is easier than ever, and there are also good reasons to do so. Let’s discuss some of the benefits of running a Horizen node.
Contributing to integrity and decentralization of a blockchain network
A nexus of nodes is essentially the infrastructure of a decentralized blockchain network. The node network plays an important role in defending the blockchain from unwanted changes. This can be especially important during times of hard fork contention. As a node operator, you have a say in how the network progresses, such as authenticating transactions and executing decision-making protocols.
Making the network more scalable and faster
Another key benefit of running a node is that it helps to propagate transactions throughout the network. By running a node, you’re helping to ensure that transactions are processed as quickly as possible.
Getting rewarded by contributing to the network
Beyond contributing to the security and resilience of a blockchain network, running a cryptocurrency node also comes with the potential to generate passive income.
Staking Rewards is a website that provides real-time information on the rewards being generated by nodes on various blockchains. For example, at the time of writing, a ZEN Securenode has a 7.77% annualized reward rate (APR), while Ethereum 2.0 has an APR of 4.8%.
The amount of reward that a node earns can vary depending on network conditions and other factors. For example, Foundry Staking recently announced the launch of its institutional-grade staking service. Through the Foundry Staking portal, institutions can stake a variety of different cryptocurrencies and receive rewards in near-real-time, including from ZEN.
How to Set Up A Horizen Node
It’s very easy to set up a Horizen node. For hassle free hosting option, we recommend checking out some of our node hosting guide to get started. You will not need any developer skills to run nodes through hosting services.
If you would like to self host Horizen Nodes, check out the Secure and Super Node instructions. Self-hosting your own node allows you to keep control of your transactions and maintain your privacy.
Running a node is an important way to contribute to the health and security of a blockchain network. It’s also a great way to generate passive income. If you’re looking for an easy way to get started, we recommend checking out Horizen node hosting guide.