The Role and Importance of Decentralization in the BTC Network

[Zero_00000000]

Hello everyone,

I've noticed a significant decrease in the number of nodes on the BTC network recently. As we all know, full nodes play a crucial role in the Bitcoin ecosystem. I'd like to open a discussion about the importance of these nodes and, more broadly, the significance of decentralization for the Bitcoin network.
https://i.postimg.cc/PdtJQTb9/20240722-102725-2x.png
source: https://bitnodes.io/dashboard/90d/


While many of us have a basic understanding that "BTC full nodes are obviously very important for the network," I'm curious if we can delve deeper. Can we explore, from a mathematical or logical perspective, how decentralization protects the BTC network and enhances its security?

Some points we could consider:

1. How does the number of nodes correlate with network security?
2. What are the potential risks of a decreasing node count?
3. Can we quantify the relationship between decentralization and resistance to attacks?
4. How does node distribution across different geographic locations and jurisdictions impact the network's resilience?
5. Are there any game theory models that demonstrate the importance of a decentralized network?

I believe this discussion could be valuable for both newcomers and experienced members of the Bitcoin community. It might help us better articulate the importance of running full nodes and maintaining a decentralized network.

Looking forward to your insights and expertise on this topic!

[sunnyfenghan]

When a Bitcoin miner calculates a Hash number, they need to broadcast their block confirmation to the entire network. Do BTC full nodes act as relayers in this process?

[ABCbits]

Hello everyone,

I've noticed a significant decrease in the number of nodes on the BTC network recently. As we all know, full nodes play a crucial role in the Bitcoin ecosystem. I'd like to open a discussion about the importance of these nodes and, more broadly, the significance of decentralization for the Bitcoin network.

source: https://bitnodes.io/dashboard/90d/

I believe bitnodes software is misbehaving. These website doesn't report sharp decline.
https://21.ninja/reachable-nodes/nodes-by-net-type/
https://coin.dance/nodes
https://luke.dashjr.org/programs/bitcoin/files/charts/historical.html (this website also include node which doesn't accept incoming connection)

2. What are the potential risks of a decreasing node count?

Worse fault tolerance, where propagation may be affected if some of those going offline or receive DDoS.

[tranthidung]

While many of us have a basic understanding that "BTC full nodes are obviously very important for the network," I'm curious if we can delve deeper. Can we explore, from a mathematical or logical perspective, how decentralization protects the BTC network and enhances its security?

Decentralization of Bitcoin network is contributed by its Bitcoin nodes (full nodes, prune nodes) and Bitcoin miners (with locations of Bitcoin mining farms decentralized in many locations and many countries).

To attack the network, attackers must own enough dominant network hashrate but with very high network hashrate nowadays and in future, cost to own enough dominant hashrate to attack network successfully is very expensive. So that risk is small and you can see how small it is with this article and estimating tool.

How many Bitcoin confirmations is enough?
Tools for attack estimation

• https://jlopp.github.io/bitcoin-confirmation-risk-calculator/
• https://web.archive.org/web/20181231045818/https://people.xiph.org/~greg/attack_success.html

[sunnyfenghan]

What is a Listening node? The chart shows that the number of Listening nodes on the Bitcoin network has dropped from a peak of 23,369 on April 5, 2018, to approximately 4,712 now. What are the risks to the overall security of the Bitcoin network from this?
https://luke.dashjr.org/programs/bitcoin/files/charts/historical.html

While many of us have a basic understanding that "BTC full nodes are obviously very important for the network," I'm curious if we can delve deeper. Can we explore, from a mathematical or logical perspective, how decentralization protects the BTC network and enhances its security?

Decentralization of Bitcoin network is contributed by its Bitcoin nodes (full nodes, prune nodes) and Bitcoin miners (with locations of Bitcoin mining farms decentralized in many locations and many countries).

To attack the network, attackers must own enough dominant network hashrate but with very high network hashrate nowadays and in future, cost to own enough dominant hashrate to attack network successfully is very expensive. So that risk is small and you can see how small it is with this article and estimating tool.

How many Bitcoin confirmations is enough?
Tools for attack estimation

• https://jlopp.github.io/bitcoin-confirmation-risk-calculator/
• https://web.archive.org/web/20181231045818/https://people.xiph.org/~greg/attack_success.html

[ABCbits]

What is a Listening node?

Usually it refers to Bitcoin node which accept incoming connection.

The chart shows that the number of Listening nodes on the Bitcoin network has dropped from a peak of 23,369 on April 5, 2018, to approximately 4,712 now. What are the risks to the overall security of the Bitcoin network from this?
https://luke.dashjr.org/programs/bitcoin/files/charts/historical.html

As i stated earlier, it leads to worse fault tolerance. Other than that, some people would argue it leads to centralization.

[sunnyfenghan]

thanks so much