Does Bitcoin Have Servers?

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Bitcoin runs on a decentralized network comprising thousands of computers around the globe. Find out more about the Bitcoin network.

Bitcoin runs on a peer-to-peer network built on top of the internet. In simple terms, the computers that run the Bitcoin network assume similar roles and are equal. All the participating computers on the network serve the purpose of providing services to the Bitcoin ecosystem. Thus, Bitcoin does not have any servers because its network services are not centralized. Instead, the computers that run the network have a random distribution around the globe. On the other hand, if you are planning to start trading using bitcoin, you may trade through a safe and secure platform like Bitcode Method

Defining Bitcoin’s Architecture

The architecture of Bitcoin is open, decentralized, and resilient. Bitcoin is a peer-to-peer virtual means of payment, with decentralization as its core design principle. Maintaining that network is only possible with a consensus-based mechanism.

Bitcoin network refers to the collection of individual nodes running the Bitcoin protocol. However, Bitcoin uses other protocols besides the Bitcoin P2P protocol. Stratum is an excellent example of a protocol used for mining operations and mobile wallets.

Gateway routing servers use the Bitcoin B2B protocol to access the network providing those additional protocols. Then, they extend the network to nodes running other protocols.

Types of Nodes and How They Work

While the nodes on the Bitcoin network are the same, they may take on different roles based on the functions they support. A Bitcoin node serves various purposes, including routing, the blockchain ledger, mining, and running wallet services. Although all nodes must help with the routing function to participate in the network, they may take on one or more of the other functions.

All Bitcoin nodes are responsible for validating and propagating transactions and blocks. They also discover and maintain connections with the other nodes on the network. Full nodes that serve all the above four functions also maintain and update the blockchain ledger. They can autonomously verify and authenticate transactions without any external references.

Some nodes maintain just a subset of the blockchain and verify transactions through simplified payment verification (SVP). Such nodes are called lightweight or SVP nodes. Unlike full nodes, SVP nodes do not have a full copy of the blockchain.

Miners use nodes to create new blocks by running specialized hardware to solve cryptographic puzzles. Some mining nodes also double up as full nodes, with capabilities to maintain a full copy of the blockchain.

Apart from the primary node types on the Bitcoin P2P protocol, other nodes and servers exist that run other functions, such as specialized mining pool protocols and lightweight client access protocols.

The Discovery of Nodes on the Bitcoin Network

Whenever a new node comes up, it must link up with other nodes on the Bitcoin network to participate. A new node must discover at least one existing node on the crypto network and connect to it. Unlike other networks, Bitcoin does not define geographical topology. So, the geographical location of the new and existing nodes is irrelevant. The new node can discover and connect to a current node randomly.

A new nod can find new peers on the Bitcoin network using two main ways. The first one is through NDS query, using DNS seeds, where servers provide a list of IP addresses of existing Bitcoin nodes to facilitate easy discovery and connections. The other way is by directly giving the new node an IP address of at least one existing node to establish further relationships.

Overall, Bitcoin does not have servers. Instead, it runs on a decentralized or P2P network of nodes, randomly distributed worldwide. Nonetheless, Bitcoin is still an infant invention, with a relatively complex architecture and several unique aspects that we may not fully understand yet.