In this article, we will explain the concept of nodes in simple terms. All the information a beginner needs to set up their first node will start from this guide.
A node is a computer running a specific application. Almost always, remote computers, i.e., servers, are used for this purpose.
This is necessary to support the network of many crypto projects. Theoretically, a node can be installed on any computer, but practically, we use rented remote servers. A guide on servers will come later.
After installing the node, it starts communicating with other network participants, storing transaction information, and so on. Such branching is needed for decentralization, which in turn is necessary to ensure network security.
As you might have understood, everything described above is very important for the smooth and stable operation of the network. Therefore, before releasing their product to the world, projects test their networks in a special environment called a testnet.
A testnet is an event where everyone can help the project by testing the network. Most often, this happens by installing and maintaining a node, but there are other tasks as well.
In gratitude for this, developers can reward us with some amount of the project's coins. At the testnet stage, these coins are worthless, but!
After the testnet ends, the project goes live in the mainnet. Mainnet is a network ready for open access use, processing transactions with real cryptocurrency. At this stage, the project's coins already have some value, but more about the sums later.
It is important to remember: there are both rewarding and non-rewarding testnets.
Currently, most projects are transitioning from the Proof-of-Work protocol (traditional mining) to Proof-of-Stake (staking), and since nodes are the staking process, it's easy to guess that they hold the future.
Secondly, it's a great opportunity to get into a project at an early stage and make good money from it.
Thirdly, by proving yourself well at the testnet stage, you can count on a place in the mainnet, becoming a network validator and receiving a percentage of the transaction fees processed.