The Bitcoin network is a peer-to-peer network where nodes exchange transactions and blocks.
Full nodes, as the name implies, are implementations of Bitcoin core clients performing the wallet, miner, full blockchain storage, and network routing functions.
Nodes, Miners, and How It All Stays in Sync (Part 2)
Simple Payment Verification (SPV) nodes or lightweight clients perform only wallet and network routing functionality.
The latest version of Bitcoin protocol is 70015 and was introduced with Bitcoin core client 0.13.2.
Some nodes prefer to be full blockchain nodes with complete blockchain as they are more secure and play a vital role in block propagation while some nodes perform network routing functions only but do not perform mining or store private keys (the wallet function).
Another type is solo miner nodes that can perform mining, store full blockchain, and act as a Bitcoin network routing node.
There are a few nonstandard but heavily used nodes that are called pool protocol servers.
These nodes make use of alternative protocols, such as the stratum protocol.
Why This Matters for Blockchain Technology
Nodes that only compute hashes use the stratum protocol to submit their solutions to the mining pool.
Some nodes perform only mining functions and are called mining nodes.
It is possible to run an SPV client which runs a wallet and network routing function without a blockchain.
SPV clients only download the headers of the blocks while syncing with the network and when required they can request transactions from full nodes.
Key Points to Remember
- The Bitcoin network The Bitcoin network is a peer-to-peer network where nodes exchange transactions and blocks.
- Full nodes, as the name implies, are implementations of Bitcoin core clients performing the wallet, miner, full blockchain storage, and network routing functions.
- Simple Payment Verification (SPV) nodes or lightweight clients perform only wallet and network routing functionality.
- The latest version of Bitcoin protocol is 70015 and was introduced with Bitcoin core client 0.13.2.
Going Deeper: Advanced Concepts
The verification of transactions is possible by using Merkle root in the block header with Merkle branch to prove that the transaction is present in a block in the blockchain.
Most protocols on the internet are line-based, which means that each line is delimited by a carriage return (r) and newline (n) character.
Stratum is also a line-based protocol that makes use of plain TCP sockets and human-readable JSON-RPC to operate and communicate between nodes.
The Bitcoin network is identified by its different magic values.
Conclusion
The Bitcoin network represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.