[LongHash Column] What to do at home? Of course, run a Bitcoin full node!

If it's not your key, it's not your Bitcoin. From the Mt. Gox incident to Bitfinex, and later Coincheck, these major hacking cases show that storing your cryptocurrency on an exchange or custodial wallet is not always the best idea.

【The original title is How to Run a Bitcoin Full Node at Home?】

A small group of enthusiasts believe that if you truly want to control your own assets, you need to take a few more steps. For example, running your own node on your own machine in your own space.

A node is a machine connected to the network. The network is composed of nodes, but no single node is particularly important to the network's existence. Nodes communicate through a consensus protocol that defines network functionality, not necessarily running the same software, but using the same language, i.e., adhering to the same protocol.

The security of Bitcoin does not lie in its codebase, hash power, electricity input for proof of work, or the mathematical properties of elliptic curve cryptography, etc. The security of Bitcoin lies in us, the users, guarding it. Just as data centers or vaults ultimately rely on people to fend off intruders, Bitcoin nodes and wallets ultimately rely on a physical force to protect them, and those with physical access can redefine the function of this machine or gain knowledge and access to its functionality.

Therefore, the security of the network faces many threats. If only one person runs their own node, that person can control network rules, including block rewards, and easily review or revoke transactions. However, if many people run their own nodes, this threat seems insignificant to users, and each additional node seems to somewhat help the network and its security.

Some technologies can help us easily protect our Bitcoin. For example, an anonymous network like Tor can hide our nodes. A well-hidden node is similar to a vault, eliminating the need for additional physical protection. The presence of cryptography makes it easier to protect a secret when it is stolen. When your node is located and controlled, something like encrypted hard drives makes it particularly difficult to crack private keys. Ultimately, through open-source software on off-the-shelf hardware, you can easily move your operations to a more discreet location.

1. Machine/Equipment

You need a machine you trust. A microcomputer as small as a Raspberry Pi can be used, but a mini-computer or self-assembled computer would be better. It doesn't require much storage space or high-speed internet access, although these things can be helpful.

Ideally, the computer runs an open-source operating system, encrypts the hard drive, and can intercept unauthorized access through methods like a firewall.

This device must be yours, inaccessible to anyone else, and preferably kept in a place only you can access.

2. Tor Network (Onion Router)

It's best to have your machine completely on Tor so that it's difficult for anyone to locate you and launch physical attacks. Additionally, it can conceal the fact that you are using Bitcoin because in certain situations, using Bitcoin can inadvertently make you a target.

If you want to run services like the Lightning Network or a Bitcoin light wallet on your machine, opting for hidden services or the Tor network can easily allow you to access nodes outside of your home network without the need for further network checks or configurations.

Click to get the source code.

3. Bitcoin Node

Your Bitcoin node verifies the integrity of every transaction and block passed in the peer-to-peer network. This allows every investor and holder to know how many Bitcoins exist and whether the entire system is functioning properly. While a node cannot prevent splits in the chain, it can help verify if the current rules are being followed.

Perhaps most importantly, a node gives you confidence to know if the Bitcoins sent to you have been confirmed by the network and not subject to double spending. Without your own node, you have to trust other nodes. However, others may act maliciously, so without your own node, you cannot verify if these nodes are on the same chain and operating according to the same set of rules.

Checking wallet balances and broadcasting Bitcoin transactions through your own node can also provide a certain level of anonymity, especially when you hide the node on Tor.

Click to get the Bitcoin Core source code. Or Libbitcoin source code.

4. Lightning Network Node

The Lightning Network promises almost instant and low-cost Bitcoin transactions without congesting the Bitcoin network. However, to enjoy these benefits, you need to use a separate network and software, and the security requirements are different. Unlike a Bitcoin wallet that can be safely shut down for long periods, even entering pure simulation mode, a Lightning Network wallet needs to be online most of the time and connected to a Bitcoin full node.

On the other hand, once set up, you can earn modest routing fees and enjoy unfairly cheap transactions. You can also remotely control this node while traveling, using apps like Zap.

Click to get the LND source code. Or lightning-c source code.

Click to get Zap source code for desktop, Android, and iOS.

5. Light Wallet

It's usually not feasible to store the entire Bitcoin blockchain on your hard drive and keep it connected when you're on the move. Fortunately, with some configuration, you can still use your home node while on the go. One of the best options is Electrum Personal Server, an easy-to-install software that can be installed on your Bitcoin node. Then you can run the Electrum wallet on your laptop or mobile device and connect to your home node (possibly through Tor).

This can protect your privacy because other Electrum nodes won't be able to see your addresses and balances. Additionally, it allows you to verify incoming transactions on your mobile device.

Click to get the Electrum Personal Server source code and Electrum Wallet source code.

6. Communication

Once you have your personal server at home, depending on the server's capacity and network speed, you can configure it to improve various aspects of your life. For example, you can use your Jitsi Meet server to host video conferences as an alternative to tools like Zoom and Google Hangouts.

You can also run your own Jabber server for secure end-to-end encrypted chat. For initiating group chats, IRC is more popular, and you can run your own with InsIRCd.

Now that you know all this, why not try building a website to store your encrypted keys? Or set up a blog to say goodbye to Medium or Wordpress? You'll find that reclaiming your sovereignty online isn't as difficult as it seems.

This article is from our partner LONGHASH

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