Resources needed to run Bitcoin core node

[Bravut]

 Bitcoin core node is important in Bitcoin network some of it importance highlighted below;
  1) Ensuring client privacy
  2)Not requiring involvement of third party in our transactions
  But my concern is,what is the necessity of one downloading all Bitcoin dataset before processing any of your transactions,which will require more data, money,and the capacity of your computer or device,also matter...
Please i would love you guys to answer my question and don't hesitate to share educational contents on Bitcoin technicals..

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[Forsyth Jones]

This is the price you pay for more privacy and/or more security.

Having the autonomy to verify and consult your own transactions in addition to being sure that you are spending on the main network (with the highest accumulated proof of work) and not letting third parties do this for you in exchange for them associating your transactions with your IP.

What's the harm in that? Well, you may for some reason be in a country prohibited from using Bitcoin and authorities run bitcoin nodes just to identify how many are using and equipped with cryptocurrency address tracking software and come after you...

Well, this is science fiction (perhaps unlikely today, but what if in the future BTC is banned in some countries?), but it was just an example I used, I can't think of another.

Of course, if you can't do this or simply don't want to, don't feel obligated, it's still safe to use Bitcoin as long as you have it in your protected wallet and have a backup saved.

[Hatchy]

  But my concern is,what is the necessity of one downloading all Bitcoin dataset before processing any of your transactions,which will require more data, money,and the capacity of your computer or device,also matter...

You can choose pruned mode mate . With this, you can keep a smaller part of the blockchain data but still be part of the Bitcoin network. In pruned mode, you pick the size of the blockchain data you want to keep and older data beyond that size gets deleted. This helps reduce storage needs and costs for running a full node, as you mentioned. Pruned mode is practical for those who want to help the Bitcoin network without storing the entire blockchain dataset.

[witcher_sense]

Please i would love you guys to answer my question and don't hesitate to share educational contents on Bitcoin technicals..

You can find pretty much everything you need here https://learnmeabitcoin.com/ or here https://github.com/bitcoinbook/bitcoinbook or even here https://en.bitcoin.it/wiki/Main_Page.

As for the necessity for a Bitcoin node operator to download all blockchain data to conduct a mere transaction, a user of a node needs to be assured that the environment in which financial affairs happen to occur is fully reliable and genuine. But it is not possible to verify the genuinity of data without verifying it piece by piece with the software over which you have absolute control.

[Churchillvv]

Building upon what Hatchy and Forsyth Jones have said, running a full node does not just help only you as person to be private in your transactions but it also helps to make the Bitcoin network more strong[1], if there is any help the community could offer the Bitcoin network then running a node should be one.

Privacy is quiet expensive, if you have to be private enough with your transactions around the Bitcoin network then you have to sacrifice a lot bit of your time and resources to achieve that but it has been made easier through the Bitcoin pruned mode[2] this means don't longer need store every of the Blockchain data in your device storage but can use as little storage as you can afford.

If you're new to the Bitcoin ecosystem you can go to a beginner friendly site like learnmeabitcoin[3] to get a background knowledge of Bitcoin and how it works. You can also read up more on the two links provided below it contains alot of Bitcoin network knowledge to satisfy your curiosities.
[1] https://bitcoin.org/en/full-node#minimum-requirements
[2] https://www.vpsbg.eu/docs/how-to-install-a-full-or-pruned-bitcoin-node
[3] https://learnmeabitcoin.com/

[ABCbits]

Some people mention pruned mode as solution of storage requirement. While it's true, take note you still need to store at least 550MB of most recent blocks and all UTXO which currently has size about 10GB. Pruned mode generally considered less helpful since it only can share unconfirmed TX and recent blocks.

  But my concern is,what is the necessity of one downloading all Bitcoin dataset before processing any of your transactions,which will require more data, money,and the capacity of your computer or device,also matter...

You need to download whole Bitcoin blockchain to verify that all TX/block doesn't violate Bitcoin protocol (e.g. spending Bitcoin without private key or creating Bitcoin out of thin air).

[BlackHatCoiner]

Some people mention pruned mode as solution of storage requirement. While it's true, take note you still need to store at least 550MB of most recent blocks and all UTXO which currently has size about 10GB. Pruned mode generally considered less helpful since it only can share unconfirmed TX and recent blocks.

Another thing that needs to be noted is that running pruned node is less flexible. You can't run Electrum server, much less lightning software supports it, and if you ever want to add another (old) wallet, you'll have to re-sync.

What's the harm in that? Well, you may for some reason be in a country prohibited from using Bitcoin and authorities run bitcoin nodes just to identify how many are using and equipped with cryptocurrency address tracking software and come after you...

If you run Bitcoin Core with onlynet=onion, your Internet provider can't know if you're running Bitcoin.

[Forsyth Jones]

Taking advantage of the fact that we are talking about a prunning node, in a bitcoin core with pruning enabled, when we import a private key, is there a way to do a rescan so that it can detect the balance, according to the mb limit that you stipulated in prunning?

I remember I tried to do that and it wasn't allowed, but that was a long time ago, has that changed?

[BlackHatCoiner]

is there a way to do a rescan so that it can detect the balance, according to the mb limit that you stipulated in prunning?

The MB limit (AKA, the max size of block files) has nothing to do with the need for re-scan or the "balance detection", unless you meant something else. When you import a new private key in a Bitcoin client that does not index transactions (with txindex=1), then you need to re-scan the blocks. If, however, you're running pruned node, then re-scanning requires re-syncing, because you don't have all the blocks to perform transaction indexing. So you need to re-download them.

[ranochigo]

The MB limit (AKA, the max size of block files) has nothing to do with the need for re-scan or the "balance detection", unless you meant something else. When you import a new private key in a Bitcoin client that does not index transactions (with txindex=1), then you need to re-scan the blocks. If, however, you're running pruned node, then re-scanning requires re-syncing, because you don't have all the blocks to perform transaction indexing. So you need to re-download them.

You can import the private key and specify false for rescan such that you don't have to rescan and reindex for a pruned node (ie. importprivkey "privkey" "" false). Thereafter, if all of your transactions are within your pruned limit, you can do a rescanblockchain start_block end_block to scan for transactions within the pruned range. If not, then you can just do a importprunedfunds to import your UTXOs into the wallet if it is not within the pruned range.

Whilst not perfect, you can still initiate a rescan so long as the blocks are on disk.

[satscraper]

 But my concern is,what is the necessity of one downloading all Bitcoin dataset before processing any of your transactions,which will require more data, money,and the capacity of your computer or device,also matter...

You can choose pruned mode mate . With this, you can keep a smaller part of the blockchain data but still be part of the Bitcoin network. In pruned mode, you pick the size of the blockchain data you want to keep and older data beyond that size gets deleted. This helps reduce storage needs and costs for running a full node, as you mentioned. Pruned mode is practical for those who want to help the Bitcoin network without storing the entire blockchain dataset.

Anyway, regardless of the fact that Bitcoin Core does pruning on the fly OP still  has to download full blockchain data before  going into management of his UTXOs and be able to send transactions.

As every thing in the world the prune mode has its own cons and one of them is that it's incompatible with txindex and rescan directives which might be helpful in situations relevant to corrupt copy of blockchain on custom disk.

[ABCbits]

Some people mention pruned mode as solution of storage requirement. While it's true, take note you still need to store at least 550MB of most recent blocks and all UTXO which currently has size about 10GB. Pruned mode generally considered less helpful since it only can share unconfirmed TX and recent blocks.

Another thing that needs to be noted is that running pruned node is less flexible. You can't run Electrum server, much less lightning software supports it, and if you ever want to add another (old) wallet, you'll have to re-sync.

FWIW, EPS and LND let you run their software while connected to pruned node.

Compatible with all Bitcoin Core resource-saving features:

• Pruning
• Blocksonly
• Disabled txindex

Note that since version 0.13 pruned nodes are supported although they cause performance penalty and higher network usage.

But obviously it comes with many limitation and not really practical for many people.

[NotATether]

  1) Ensuring client privacy

...Is only possible when connecting through Tor. Or possible I2P or CDNJS, but I have never tried those two alternative methods, so I cannot comment about them.

If you have a need to hide the fact that you're running a bitcoin node for whatever reason, the way to do it is by first using the "onlynet=onion" directive, then you have to turn of DNS seeding using dns=0 and dnsseed=0.

This comes from https://bitcoin.stackexchange.com/questions/70069/how-can-i-setup-bitcoin-to-be-anonymous-with-tor and the Bitcoin Wiki page,  but the two ways your information is leaked when ruunning a node is through IP public interfaces and also when making DNS queries to seeds. So these two methods shut them down, but there is some additional configuration on that page which you need to apply in order to make a fully-operational Tor-only node.

[ABCbits]

  1) Ensuring client privacy

...Is only possible when connecting through Tor. Or possible I2P or CDNJS, but I have never tried those two alternative methods, so I cannot comment about them.

--snip--

Which CDJNS you refer? I did quick search, but i only found centralized service offered by Cloudflare,

[Synchronice]

Bitcoin core node is important in Bitcoin network some of it importance highlighted below;
  1) Ensuring client privacy
  2)Not requiring involvement of third party in our transactions
  But my concern is,what is the necessity of one downloading all Bitcoin dataset before processing any of your transactions,which will require more data, money,and the capacity of your computer or device,also matter...
Please i would love you guys to answer my question and don't hesitate to share educational contents on Bitcoin technicals..

I wouldn't use my regular computer for running a full bitcoin core node. Others already gave you advices about how to run node. Now, when it comes to resources, you can simply buy a raspberry pi with 1TB hard drive, that will cost you under $100. Or buy a cheap used laptop, that's all.
For privacy purposes, you can use Tor but if you simply want to broadcast your transaction without using your node but still via Tor, then use: http://mempoolhqx4isw62xs7abwphsq7ldayuidyx2v2oethdhhj6mlo2r6ad.onion/tx/push

[NotATether]

  1) Ensuring client privacy

...Is only possible when connecting through Tor. Or possible I2P or CDNJS, but I have never tried those two alternative methods, so I cannot comment about them.

--snip--

Which CDJNS you refer? I did quick search, but i only found centralized service offered by Cloudflare,

Sorry, it is actually called cjdns and there are some nodes for it listed at the end of this file: https://github.com/bitcoin/bitcoin/blob/master/contrib/seeds/nodes_main.txt#L893

It actually has nothing to do with cloudflare, but it seems to be an "encrypted IPV6 network" in a similar fashion to the other privacy networks such as I2P. You can see the source code for it here: https://github.com/cjdelisle/cjdns/

Although I'm not sure how anyone is supposed to use that in a world where everybody uses NAT for connecting to the internet.