Node providers — the heart of web3 integrations
🚀 Do you know how to access on chain data?
🚀 Do you know how to access on chain data?
🚀Why do web3 devs need node providers?
🚀Why it can be the sensitive point of the true decentralization?
🚀 What are the examples
AGENDA:
- what is it?
- how it works?
- risks and challenges of becoming a node provider,
- examples,
- conclusion.
WHAT IS IT?
A node provider is a person or some organization that maintains nodes in a blockchain network.
Nodes are computer servers or devices that store and transmit data on a network.
Each node stores a copy of the blockchain data, including proceeded transactions and lines blocks.
The Role of a node provider is to ensure that node is running smoothly and is synchronized with the entire system.
Moreover, node provider allows to access blockchain data, (on chain data) through the interface (API), so that it can be possible to implement web3 features in the decentralized applications.
HOW IT WORKS?
“Node service providers run distributed node clients behind the scenes for you, so you don’t have to.”
Such services provides API key which allows to read and write data in the network.
These solutions often allows an access to testnet networks, to give the possibility of proper testing of implemented solutions.
RISKS & CHALLENGES
- Security
Nodes are the targets of malicious attacks.
2. Scalability
As amount of transactions grows, new blocks are mined, storing data can be difficult.
3. Regulatory risk
Depending of the jurisdiction, running own node and providing services can be a subject under strong regulations.
4. Network centralization
Network is vulnerable to 51% attack, as some organization can increase amount of nodes under their control.
EXAMPLES
- Infura
- AWS Blockchain API provider
- Alchemy
- Ankr
- Quick node
- Now nodes
CONCLUSION
Node providers are the key of web3 integrations. It is impossible to read or write data through an application without having access to the on chain data.
That is why it is needed to use one of the offered services.
However, there are always risks and challenges which can destroy the whole functionality of an integrated dapp.
Are you interested in web3? Follow the official repo from the challenge, which contains all of the topics👇
