Running a Bitcoin Node

[boliu]

Just wonder if you run a full node, do you get paid to relay transactions?

I came across

https://blockchain.info/ip-address/1.202.65.29

(Fee: 0.0005 BTC - Size: 226 bytes) 2014-02-14 00:24:03

Is that the fee paid to the node or fee for the transaction that's added to the block?

[Lauda]

Nodes do not get fees, miners do.

[e4xit]

Just wonder if you run a full node, do you get paid to relay transactions?

I came across

https://blockchain.info/ip-address/1.202.65.29

(Fee: 0.0005 BTC - Size: 226 bytes) 2014-02-14 00:24:03

Is that the fee paid to the node or fee for the transaction that's added to the block?

There are two seperate (but possibly interlinked) processes; Running a node and Mining.

Running a node only relays transactions throughout the network (and uploads the blockchain to peers).

Mining requires computationally expensive cryptographic work be undertaken (by a CPU, GPU, ASIC or other device). The function of this is to secure the network by "auditing" transctions (preventing double spends etc). This 'expensive' work is rewarded by "newly minted" bitcoins and transaction fees.

Note that to Mine (usually) requires you to be running a full node, although this is not necessarily the case for some mining pools).

Getting paid to relay tx has been discussed here before, Im sure if you do a google custom search (or forum search) you will find reference to those conversations.

[franky1]

Just wonder if you run a full node, do you get paid to relay transactions?

I came across

https://blockchain.info/ip-address/1.202.65.29

(Fee: 0.0005 BTC - Size: 226 bytes) 2014-02-14 00:24:03

Is that the fee paid to the node or fee for the transaction that's added to the block?

anyone running the bitcoin-qt client is a node. (users)
when doing transactions the fee goes to miners.
the miners or when solving a block get a standard reward (currently 25btc) and the total of the transaction fee's of all transactions in that block.
if your in a mining pool that reward and fee total gets spread out with all the miners in the pool shared fairly depending on the hashrate(speed) of the miner.

[boliu]

was there a change because when I tried to send a transaction out today, Bitcoin - Wallet gave me this



this clearly say the fee goes to the nodes that process the transactions not to the miners, am I misunderstand this?

[whtchocla7e]

Why do nodes not get a cut of the fee? Without them there is no mining.

[Holliday]

was there a change because when I tried to send a transaction out today, Bitcoin - Wallet gave me this



this clearly say the fee goes to the nodes that process the transactions not to the miners, am I misunderstand this?

"Process your transaction" means to include it in a block. Only mining nodes include transactions in blocks. Non-mining nodes can not include them into a block, but they can forward them to a mining node.

[Holliday]

Why do nodes not get a cut of the fee? Without them there is no mining.

Miners do need to run nodes.

Hashers who get paid to submit hashing power to a miner (pool operator) do not need to run nodes.

[rat]

would nodes getting a fee encourage a more robust network?

[drrussellshane]

would nodes getting a fee encourage a more robust network?

I suppose it might create incentive for more people to run full nodes.

I run multiple full nodes myself.

In a way, running a full node is its own reward.

[Lauda]

would nodes getting a fee encourage a more robust network?

People should help the network for the sake of the network, not for money.

[Holliday]

would nodes getting a fee encourage a more robust network?

People should help the network for the sake of the network, not for money.

Yeah, but this is planet Earth (sorry I've grown cynical as I've grown older).

I don't think the network is short on nodes (but I don't have the technical knowledge needed to know this for certain).

It might be short on mining nodes (since most hashers only sell hashing power to pools instead of actually mining).

[Lauda]

Yeah, but this is planet Earth (sorry I've grown cynical as I've grown older).

I don't think the network is short on nodes (but I don't have the technical knowledge needed to know this for certain).

It might be short on mining nodes (since most hashers only sell hashing power to pools instead of actually mining).

Both points are correct. We have a fair amount of nodes, but we are short on mining ones.

[whtchocla7e]

would nodes getting a fee encourage a more robust network?

People should help the network for the sake of the network, not for money.

Agree. Lets kill the mining fees.

[Lauda]

Agree. Lets kill the mining fees.

Mining and running a node is not the same.
Running a node has minor costs.

[Holliday]

would nodes getting a fee encourage a more robust network?

People should help the network for the sake of the network, not for money.

Agree. Lets kill the mining fees.

Mining fees will eventually replace the block reward. It needs to be a gradual change.

Without fees/reward, not enough people will secure the network and it will be extremely vulnerable to attack.

[Gabi]

this clearly say the fee goes to the nodes that process the transactions not to the miners, am I misunderstand this?

Yup, you are misunderstanding it. "miner" is an informal word, who "process the transaction" is who put it in a block, so a miner. Nodes just relay it.

Agree. Lets kill the mining fees.

Can we send the electricity bill to you then? Will you pay all the expenses that mining (remember, mining is here for security) requires?

[DannyHamilton]

would nodes getting a fee encourage a more robust network?

Possibly, but it would become EXTREMELY expensive.

The smallest possible "fee" that can be paid with bitcoin is 0.00000001 BTC.

If you want to guarantee that the miners and your intended recipient all receive the transaction, you'll need to pay a fee to EVERY single node on the network.  If there are 10 million users all running full nodes, that would mean you'd have to pay a minimum fee of at least 0.00000001 BTC X 10 million = 0.1 BTC just for "relay fees".  Then you'd have to pay a mining fee in addition to that.

[smooth]

would nodes getting a fee encourage a more robust network?

Possibly, but it would become EXTREMELY expensive.

The smallest possible "fee" that can be paid with bitcoin is 0.00000001 BTC.

If you want to guarantee that the miners and your intended recipient all receive the transaction, you'll need to pay a fee to EVERY single node on the network.  If there are 10 million users all running full nodes, that would mean you'd have to pay a minimum fee of at least 0.00000001 BTC X 10 million = 0.1 BTC just for "relay fees".  Then you'd have to pay a mining fee in addition to that.

It could be done in bulk, say one fee for every 1000 or 10000 transactions (or a probabilistic equivalent).

But the real answer is that no one has quite figured out how to build a p2p network that pays for bandwidth.  It is a work in progress. See https://bitcointalk.org/index.php?topic=415100.0

[dserrano5]

If you want to guarantee that the miners and your intended recipient all receive the transaction, you'll need to pay a fee to EVERY single node on the network.  If there are 10 million users all running full nodes, that would mean you'd have to pay a minimum fee of at least 0.00000001 BTC X 10 million = 0.1 BTC just for "relay fees".  Then you'd have to pay a mining fee in addition to that.

It could be done in bulk, say one fee for every 1000 or 10000 transactions (or a probabilistic equivalent).

So because I run a node I'd get a satoshi per 1k or 10k transactions. Wow, the new wealthy elite! Sign me up!