Mar 9, 2021
The role of P2P in the block chain
The inherent P2P of blockchain technology is what allows Bitcoin and other cryptocurrencies to be transferred worldwide without the need for intermediaries or any central servers. Alternatively, anyone can set up a Bitcoin node if they want to participate in the verification and validation of blocks.
So there are no banks to process or record transactions in the Bitcoin network. Instead, the blockchain acts as a digital ledger that publicly records all activity. Basically, each node holds a copy of the blockchain and compares it to the other nodes to ensure the data is correct. The network quickly rejects any malicious or inaccurate activities.
In the context of cryptocurrency blockchains, nodes can assume a variety of roles. For example, full nodes are nodes that provide security to the network by verifying transactions against the system’s consensus rules.
Each full node maintains a complete, updated copy of the blockchain — allowing them to participate in collective work to verify the real state of the distributed ledger.
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