Summary
TLDR: To fully participate in the Bitcoin network, you need to run a full node like Bitcoin Core. This allows you to verify transactions, ensure the 21 million supply cap is intact, and maintain privacy. Trusting a wallet provider or third party for verification can compromise your security and privacy. Running your own node is crucial for interacting with Bitcoin in a sovereign and secure manner.
Key Points
1. Running a full node allows you to verify every transaction on the Bitcoin network, ensuring the integrity of the system and removing the need to trust a third party.
2. Verifying transactions with your own full node also ensures that the 21 million supply cap of Bitcoin is maintained, as your node validates each coinbase transaction to prevent any excess issuance.
3. Connecting your wallet to your own full node improves privacy by preventing the exposure of sensitive information to third parties, allowing you to maintain anonymity in your Bitcoin transactions.