The NASDAQ-listed company, MicroStrategy (MSTR), is running a fully validating node, or “full node” for the Bitcoin blockchain, its CEO, Michael Saylor, has revealed.
MicroStrategy Operates a Bitcoin Full Node
In a tweet on Oct 30, the outspoken CEO–and a passionate Bitcoin supporter, said the public listed company is doing their part in contributing towards the success of the network. Their node runs the latest Bitcoin core release.
A Bitcoin full node ensures participants read on the same page, guaranteeing the blockchain remains peer-to-peer as envisioned by the founder.
As an autonomous and a highly reliable network driven by the community, “miners” broadcast BTC transactions for validations by other network participants using these full nodes.
To be part of the core, full node operators must download the whole Bitcoin file. The blockchain file stands at over 307 GB at the time of writing but keeps expanding as more users opt for censorship and cheap transactions.
Full Nodes as Bitcoin’ Security
Without their input, it would be impossible to seamlessly and securely operate the expansive digital ledger without double-spending risks.
By their volition–and in the spirit of decentralization, their participation means consensus rules are enforced. As such, value, in their billions, can be confidently moved across the world cheaply without a middleman.
Besides, the security of the Bitcoin network is gauged by their density and distribution. The more there are full node operators–and the more they are distributed, there is decentralization and, therefore, security for the Bitcoin blockchain.
In this case, it becomes increasingly hard for malicious miners to double-spend transactions through what’s known as a majority or a 51% attack.
MicroStrategy’s BTC Likely Safeguarded by a Custodian
MicroStrategy owns $475 million worth of BTC. However, as a public company–and despite their running of a full node, they won’t probably directly control these coins.
Instead, their BTC are secured by a U.S.-based and approved custodian since present laws make it virtually impossible for them to do store coins given the rampant security concerns in the crypto space.
Earlier, As reported that public companies have under their management over $6.75 billion in BTC.