The beauty of Bitcoin lies in its decentralized nature, allowing anyone to verify transactions and confirm the 21 million supply cap. This article, the fifth in the series "10 Steps to Self-Sovereignty" by Ledger, explores the benefits of running a Bitcoin node.

Bitcoin's decentralized and limited nature makes it appealing to users. However, using a Bitcoin wallet alone doesn't make you a full participant in the network. A wallet manages your private keys and helps you craft and sign transactions, but it doesn't validate the blockchain. To become a node and validate transactions, you need to run additional software called a client. Bitcoin Core is the most widely used Bitcoin client.

Interacting with Bitcoin using just a wallet is possible, but running a full node has its advantages. When you initiate a transaction, it goes to the Bitcoin network's nodes for validation. If any transaction in a block is invalid, the entire block is rejected by all full nodes. Your full node handles this verification automatically, ensuring every coin spent has not been spent before, all signatures are valid, and all spending conditions are met.

Running a full node removes the trust you place in your wallet provider. It verifies your transactions and ensures the integrity of the 21 million supply cap. Every bitcoin in circulation comes from a special transaction in each block called the coinbase transaction. Your node validates these transactions to guarantee new coins don't exceed the supply cap.

Privacy is another reason to run your own node. When using a Bitcoin wallet not connected to your own full node, you must rely on someone else to process your transactions, revealing your transaction history and unspent coins to them. By running your own full node and connecting your wallet to it, you maintain your privacy.

Running your own full node has additional benefits. It verifies your transactions, ensuring your wallet provider doesn't deceive you. It also allows you to verify the supply cap and maintain the privacy of your funds. While holding your own keys is crucial, running your own full node is the next step in fully participating in the Bitcoin network.