Running your own node not only contributes to upholding Bitcoin's consensus rules, thereby enhancing the integrity of the Bitcoin network, but also empowers you to actively support or reject proposed forks. These forks represent changes in Bitcoin’s consensus rules, and by running a node, you can choose to enforce either the new, modified consensus rules or adhere to the existing ones.
Every time you engage in a bitcoin transaction, your wallet software requests transaction information, encompassing details such as transaction history, inputs, outputs, and confirmations, either from your local node or from remote nodes.
Running your own node enables seamless integration of the node into your wallet software, empowering you to independently query, transmit, and verify transaction information directly relevant to your wallet. Utilizing your node in this manner ensures both the privacy and integrity of your transactions, as it conducts transaction verification locally, adhering strictly to its own ruleset, and thereby ensuring that transactions are validated accurately and securely without disclosing sensitive data to external entities.
On the contrary, querying remote nodes poses security risks, as these sources may be compromised, leading to potential manipulation of transaction data or dissemination of inaccurate information.
Additionally, it compromises privacy, as the servers and nodes of third-party services can access your IP address, query history, and therefore, your account balances and spending activity.
Moreover, any personal information provided to establish the service, such as email address, phone number, or physical address, can be linked to your transactions and account balances, further compromising your privacy.
Running your own node empowers you to combine it with a locally-hosted block explorer, allowing you to have full control over querying and analyzing blockchain data directly from your own node, enhancing your privacy, control, reliability, and security.
On the contrary, relying on third-party block explorers poses several risks that can compromise your privacy, security, and the accuracy of the information you receive.
Third-party block explorers often collect and store users' browsing habits and transaction data, including IP addresses, query history, and other user information, potentially compromising users' anonymity and privacy.
Moreover, trusting third-party services to handle your data securely leaves you vulnerable to potential security breaches. If the service is compromised, your sensitive information could be exposed to malicious actors, posing a significant security risk.
Additionally, third-party block explorers may present data in a biased or manipulated manner, potentially leading to misinformation or confusion among users.
Excerpt from one of my write-ups, maybe it'll be of use, maybe not. 🙂💕
Incentives for Running Your Own Full / Pruned Node
Enabling Personal Enforcement of Bitcoin's Consensus Rules and Forks:
Enhanced Privacy and Security of Personal and Transaction Data:
Enabling Utilization of A Locally-Hosted Block Explorer: