A piece of news that will excite many crypto enthusiasts was recently brought to light – Bitcoin Core, the official Bitcoin full node client will receive support for hardware wallets in its new, 18th major version. Although currently limited to manual usage via the terminal, it’s still a huge step forward towards better usability and wider adoption of Bitcoin.
How Does This Change Affect Bitcoin Core Users?
While some of you may be wondering what the fuss is all about, the enabled support for hardware wallet is a great step towards providing users of the Bitcoin blockchain with privacy once more. Generally, when a hardware wallet is used, its software connects through a 3rd party server and divulges your public addresses. If you use it directly however, the full node client itself would manage your wallet and thus, you’ll have no need for the 3rd party software. Your addresses will be safe from prying eyes and you can rest assured that no one will be able to track you. In addition to the increased privacy levels, another added benefit of this update is the higher security of your transactions.
Firstly, it’s always recommended to run your own full node if possible. This way, you’ll be able to verify transactions on your own, not relying on others to provide you with data, which may be falsified mind you. Secondly, you’ll be using a hardware wallet to store your funds and feed transfers. This type of cryptocurrency wallet is considered the safest alternative on the market, to date. Devices like it are highly unlikely to be targets of an attack, as they’re only used when necessary and have no operating system which can be hacked.
Either way, you can’t have your cake and eat it at the same time, there are always trade-offs. If you’re looking for increased security – go for the combination of full node and hardware wallet. If all you need is convenience – sticking to a desktop/mobile wallet and not keeping large sums on hand is the way to go.
How Can I Run a Bitcoin Full Node?
First off, hosting your own Bitcoin full node is not an easy task – that is what has deterred many people from doing so. While developers are aiming to simplify the process and make it more user-friendly, we’re still far from a future where the blockchain is completely trustless and everyone is running their own Bitcoin full node.
If you’re still interested, however, the main requirements would be having enough disk space – upwards of 210GB, unlimited bandwidth to share the information with others and preferably your hosting device to run 24/7 so it’s up-to-date on all blocks. A detailed guide can be found on the official Bitcoin webpage.