Participation Node

Understanding the Participation Node

The concept of nodes can differ depending on their specific application. In the context of a blockchain network, nodes are electronic devices connected to the network with an IP address. In blockchain networks, nodes serve as communication endpoints, meaning that any user or program wanting to connect with the blockchain must do so through nodes. This makes nodes essential for redistributing communication within the network.

Due to the decentralized nature of blockchain ledgers, anyone can operate a node as there is no central authority controlling access. Public blockchains aim to be dynamic and decentralized, with nodes continuously joining and leaving the network. Additionally, certain blockchains may allow nodes to operate without participating in the consensus process. This is the case in Delegated Proof-of-Stake (dPoS) blockchains, where validators are chosen through stakeholder voting. However, not everyone has the necessary time, knowledge, or expertise to manage a node.

In Algorand, there are two types of nodes: relay nodes and participation nodes. Relay nodes act as network hubs, efficiently transmitting protocol messages between participating nodes. On the other hand, participation nodes play a crucial role in Algorand’s consensus process by introducing and validating new blocks. These nodes use participation keys to sign consensus protocol communications, and the keys are stored on the participation nodes themselves.

To connect with each other, participation nodes in Algorand utilize the consensus mechanism and rely on relay nodes. To become a participation node, network participants must stake ALGO and generate a valid participation key. Algorand’s PPoS consensus method involves a two-phase block creation process that includes proposing and voting. While relay nodes coordinate the participation nodes and enable communication between them, they do not directly engage in the proposing and voting processes.

Participation nodes, authorized by the user’s participation key, propose and vote on blocks on behalf of the user’s stake within the consensus process. A single participation node can represent multiple users if their relevant participation keys are placed within it. Running participation nodes is open to anyone, and as long as enough of them operate the consensus process honestly, the Algorand blockchain will remain secure and intact, even if all relay nodes are compromised.