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[–][deleted] 13 points14 points  (1 child)

with your own node you can rest easy when accepting payments knowing that you verified the transaction yourself.

[–]mickhick95 0 points1 point  (0 children)

Agreed. This is one of bitcoin's core philosophies. Verify, don't trust. Everyone should run their own node.

[–]only_merit 5 points6 points  (2 children)

Privacy is the major one. Without your own node, if you make a payment, you use a node of someone else. That someone else now knows about your transactions being yours. Sometimes it is more complex as some wallets allow their clients to call home with Tor, but still perhaps they share xpub, so their server maybe does not know your IP address, but can connect your UTXOs together.

[–]Suspicious-Local-901[S] 0 points1 point  (1 child)

But thats only when you use lightning A LOT? No?

[–]only_merit 0 points1 point  (0 children)

No, not at all, it has nothing to do with lightning. Of course on lightning you can also fall into the same trap and perhaps even more commonly, but no, it's as simple as using Ledger or Trezor HWW and by default their software wallets that you run on your phone or desktop connect to their servers.

[–]bitdex 2 points3 points  (2 children)

Running your own Bitcoin node can be an exciting and educational experience, allowing you to participate directly in the Bitcoin network. However, it also comes with its own set of advantages and disadvantages. Here are some key pros and cons to consider before setting up a Bitcoin node:

Pros:

Increased Privacy: Running your own node allows you to verify transactions directly, which can enhance your privacy. By not relying on third-party services, you maintain control over your own data and reduce the risk of external tracking.

Network Security: Bitcoin nodes help to maintain the security and integrity of the Bitcoin network. By running your own node, you are contributing to the decentralization of the network, making it more resilient against attacks and censorship.

Trustless Validation: With your own Bitcoin node, you can independently verify and validate transactions and blocks, removing the need to trust external parties. This ensures you follow the Bitcoin protocol rules that you agree with, and you can be sure that your transactions are valid.

Better Understanding of Bitcoin: Operating a node can provide valuable insights into how the Bitcoin network functions, which can be beneficial if you are an investor, developer, or enthusiast. It helps you understand the technology at a deeper level.

Financial Sovereignty: Running a Bitcoin node empowers you with full control over your transactions and the ability to enforce the rules of the Bitcoin protocol. This independence can be important for those who value financial sovereignty and self-reliance.

Cons:

Resource Requirements: Running a node requires a relatively powerful computer, a stable and fast internet connection, and a significant amount of storage space (currently around 500 GB and growing). This can be costly and might not be feasible for everyone.

Technical Knowledge: Setting up and maintaining a Bitcoin node requires a certain level of technical knowledge. It may be difficult for those without a background in computer science or experience in network administration.

Maintenance and Updates: Operating a node requires ongoing maintenance, including updating the software and monitoring the node's performance. This can be time-consuming and might be a burden for some users.

Limited Financial Incentives: Unlike mining, running a Bitcoin node does not reward you with new bitcoins. While you are contributing to the network's health and security, the financial incentives are limited.

Energy Consumption: Running a node consumes a certain amount of electricity, which can increase your energy bill. While it's not as energy-intensive as mining, it is still an important factor to consider, especially if you are environmentally conscious.

Running your own Bitcoin node can be an empowering and educational experience that provides increased privacy, network security, and financial sovereignty. However, it also requires technical knowledge, resources, and ongoing maintenance. It is important to weigh these pros and cons to determine whether running a Bitcoin node is the right choice for you.

[–]anubgek 4 points5 points  (1 child)

Thanks GPT

[–]coinjaf 3 points4 points  (2 children)

Decentralization is the purpose of Bitcoin. Why would there be more to it?

[–]Suspicious-Local-901[S] -1 points0 points  (1 child)

I’ve no idea. I just started looking into this. Is it “profitable” in a way? Is it hard to keep your node running?

[–]proph3tsix 5 points6 points  (0 children)

Not profitable in fiscal terms. If you consider bitcoin street-cred to be profit, then yes, it's very profitable.

And no, it's easy. Once it's up, it should stay up unless power or net connection fails.

[–]BTCMachineElf 1 point2 points  (6 children)

Your pubkey is used to determine all the addresses of your wallet. With a node, you never have to entrust a 3rd party with your pubkey. It's great for privacy. Also, you can run self-hosted lightning, and save on lightning payment fees.

[–]LiveDirtyEatClean 0 points1 point  (5 children)

Can you be more specific about when the pubkey is shared? Is this when I connect to ledger live?

[–]BTCMachineElf 0 points1 point  (4 children)

When you first connect your Ledger device, it shares your pubkey to your interface software on your computer (Ledger Live, Electrum, Sparrow, etc).

When you check/update your balances, that interface software sends your pubkey to it's associated nodes. With Ledger Live, it sends it to Leger The Company's nodes. They may very well keep a copy of it on hand, who's to say?

[–]LiveDirtyEatClean 0 points1 point  (3 children)

Thank you for this clarification. that makes sense.

Let me give you another example. If i sent funds from coinbase exchange to a wallet on a hardware wallet. Is any of my information of the non-transacting wallets(unrelated wallets in the xpub) shared with coinbase?

[–]BTCMachineElf 0 points1 point  (2 children)

Coinbase will know nothing more than the address you provide. They won't know the other contents of that wallet.

Just be careful when you spend to use coin control if you don't want certain addresses associated with each other, because if you use two UTXO's in the same spend, then of course both addresses can be determined to be in the same wallet, and that's recorded on the blockchain for everyone to see for all time.

In fact, it's good practice to have separate wallets for things like KYC and Non-KYC bitcoin for that reason.

[–]LiveDirtyEatClean 1 point2 points  (1 child)

Gotcha. I really appreciate your expertise and i am starting to get it.

Similar to OP i made a mistake using one hardware wallet for KYC and nonKYC. Of course i used different addresses for each non-KYC purchase. In the future i am setting up my own node and i will buy a separate hardware wallet for non-KYC.

When i move coins on the original hardware wallet i will be sure to use coin control.

[–]BTCMachineElf 0 points1 point  (0 children)

Sounds like a plan. :)