Last checked 5 November 2026. We do not recommend or rank any node project, and we have no commercial link with any of them. If anything here conflicts with the linked source, the source wins.
Custody answers the question "who holds the keys?". A node answers a different one: "who tells the company what the bitcoin network says?". Without its own node, a company's wallet software asks someone else's server for its balances and history, and sends its transactions through that server. Running a node means the company checks the chain for itself, keeps its wallet queries private and removes one more outside party from its custody set-up. This page explains what a node is, how it fits a 2 of 3 multisig, the main ways to run one, and how to write it into policy.
- What a node is
- Why a company might run one
- How it fits a 2 of 3 set-up
- Ways to run one
- Practical decisions
- Policy and the recovery drill
- Common mistakes
What a node is, in plain terms
A full node is a program that downloads every block and checks every transaction against bitcoin's rules itself, rather than trusting anyone else to have done so. The reference software is Bitcoin Core, which is open source.
Source: Bitcoin.org: Running a full node: what a full node is, minimum requirements, bandwidth and pruning, Bitcoin Core: Licence: MIT (COPYING).
- Full (archival) node. Keeps the whole block history, which Bitcoin.org puts at over 750 GB and growing.
- Pruned node. Still checks every block from the start, then deletes old block data it no longer needs, cutting disk use to around 7 GB. It verifies just as fully, but cannot serve old blocks or rescan far back in history, which matters if you later add a wallet to it.
Source: Bitcoin.org: Running a full node: what a full node is, minimum requirements, bandwidth and pruning.
Why a company might run one
Verify, don't trust
The company sees incoming payments and balances as checked by its own copy of the rules. That is a useful extra line in audit evidence: balances were read from the company's own node, not a provider's website.
Privacy
A wallet that uses a public server tells that server every address the company watches. Over time that can link the company to its whole history. Pointed at its own node, the wallet stops telling outsiders.
Fewer third parties
It is the same reasoning as multisig: reduce the number of people and services the company must trust.
What it does not do
A node does not hold keys, does not protect against a lost backup and does not replace multisig. If the node is lost, no bitcoin is lost.
Source: Sparrow Wallet: Connect Sparrow to Bitcoin Core.
How a node fits a 2 of 3 set-up
In a typical company set-up, a coordinator wallet on a computer holds the wallet descriptor (the public half of the wallet) and builds transactions. The three hardware signers stay offline and only sign. Sparrow is one example of a coordinator wallet that can connect directly to the company's own Bitcoin Core node instead of a public server. We name it as an example, not a recommendation.
Source: Sparrow Wallet: Connect Sparrow to Bitcoin Core, Bitcoin BIPs: BIP 380: Output script descriptors, general operation (wallet backups and exports), Bitcoin BIPs: BIP 174: Partially Signed Bitcoin Transaction format (PSBT).
| Part | What it does | Holds keys? |
|---|---|---|
| Hardware signers A, B and C | Check and sign transactions | Yes, one key each |
| Coordinator wallet (for example Sparrow) | Watches balances, builds transactions, collects two signatures | No, public keys only |
| Company node (Bitcoin Core) | Checks the chain, answers the coordinator's questions, broadcasts signed transactions | No |
Ways to run one
The four approaches below are listed alphabetically. All of them run Bitcoin Core underneath. Each fact comes from the project's own repository or documentation, and we have not tested them ourselves. Several are general home server systems that also offer apps unrelated to bitcoin; this page covers only running a bitcoin node.
| Approach | Hardware | Effort to set up | Licence | Notes |
|---|---|---|---|---|
| DIY Bitcoin Core | A spare desktop or laptop running Windows, macOS or Linux. Bitcoin.org lists 2 GB of memory as a minimum, and around 7 GB of disk if pruned, or over 750 GB unpruned. | Install the software and let it sync, which takes at least several days. | MIT (open source) | Most direct, fewest extra layers. Updates and monitoring are entirely up to you. |
| RaspiBlitz | A Raspberry Pi 4 or 5 you assemble yourself, with an optional display. | Do it yourself: build the device and flash an SD card image, following the project docs. | MIT (open source) | The project describes itself as mainly aimed at learning to run your own node from home. |
| StartOS (Start9) | Start9 sells ready made servers; StartOS can also be installed on your own hardware. | Guided set-up through a web interface. | MIT (open source) | An operating system for running a personal server, with Bitcoin Core installed as a service. |
| Umbrel | Umbrel Home or Umbrel Pro hardware, or a free download for an Intel or AMD machine, Raspberry Pi 5 or a virtual machine. | Guided set-up through a web interface. | PolyForm Noncommercial 1.0.0 (source available, not an open source licence) | Umbrel's licence FAQ describes free use for personal or nonprofit purposes. A company should check whether its use is covered, and ask Umbrel if unsure. |
Source: Bitcoin.org: Running a full node: what a full node is, minimum requirements, bandwidth and pruning, Bitcoin Core: Licence: MIT (COPYING), Bitcoin Core: Download Bitcoin Core and verify the release signatures, RaspiBlitz: Project README: a do-it-yourself bitcoin and Lightning node on a Raspberry Pi 4 or 5, RaspiBlitz: Licence: MIT, RaspiBlitz: Documentation: how to build and set up a RaspiBlitz, Start9: StartOS repository: an open source Linux distribution for running a personal server, Start9: StartOS licence: MIT, Start9: Start9 documentation, Umbrel: umbrelOS repository: Umbrel Home or Pro hardware, or a free download for Intel or AMD machines, Raspberry Pi 5 or a virtual machine, Umbrel: Licence: PolyForm Noncommercial 1.0.0, Umbrel: Licence FAQ: personal and nonprofit use, and who to ask about other uses.
Whatever you choose, download software only from the project's official source and, where the project offers it, verify the release signatures.
Source: Bitcoin Core: Download Bitcoin Core and verify the release signatures.
Practical decisions for a company
Where it lives
The office or a director's home both keep the hardware under the company's control. A rented server in a data centre is always on and needs no space, but the provider controls the machine, can see what runs on it and may be asked for data, which undoes part of the privacy reason for running a node. Treat a rented server as a trade-off, not the default.
Who looks after it
Name a node owner by role in the treasury policy, with a deputy who knows how to restart it and where the notes are.
Updates and monitoring
A short monthly check: is it running and in sync, is there a new release from the official source, is the disk filling up. Note the result in the node log.
Power, storage and bandwidth
Bitcoin.org notes that the first sync downloads the whole chain (roughly 740 GB at the time of its writing), after which download is around 20 GB a month, and that a node accepting connections can upload 200 GB or more a month. Check the company's internet plan for limits. We do not estimate costs, as they vary.
Remote access
Reaching the node from outside the building through Tor or a VPN is common. Do not open a port on the office router unless someone understands what that exposes.
Source: Bitcoin.org: Running a full node: what a full node is, minimum requirements, bandwidth and pruning, Bitcoin Core: Tor support in Bitcoin Core (doc/tor.md).
Adding it to policy and the recovery drill
A short clause in the treasury policy is enough. For example:
The company runs its own bitcoin node, used by its coordinator wallet to check balances and broadcast transactions. The node owner is the [role], with the [role] as deputy. The node owner checks it monthly and applies updates from the official source. If the node is unavailable, the company may use [named fallback] for a limited period, recorded in the node log.
Add one question to the yearly recovery drill: if the node were lost tomorrow, could we still see and spend the funds? The answer should be yes. The keys, their backups and the descriptor are what matter; a node can be rebuilt from scratch.
Node owner checklist (PDF)
One page: the node owner and deputy, where the node lives, the monthly check, the fallback if it is down, and the recovery drill question. Part of the same free library as our other templates: one sign-up sends them all.
Free. One email with the whole template library, then one short lesson each Thursday. Unsubscribe at any time. See our privacy notice.
Common mistakes
- Treating the node as a backup. It holds no keys. Back up the keys and the descriptor, not the node.
- Exposing it to the internet without understanding it. Prefer Tor or a VPN for remote access.
- One person knowing how it works. Name a deputy and keep short written notes.
- Confusing node software with a custodial service. Running a node is not handing your bitcoin to anyone, and a service that offers to "run your node" while holding your keys is a different thing entirely.
- Using the node's built in wallet for a single key. We do not recommend a single signature wallet for a company. Keep the 2 of 3 multisig and use the node only to check and broadcast.
Our judgement, not a rule: a node is a sensible next step once the multisig, backups and drill are in place, not before. It adds privacy and independent checking, but it is the keys that protect the funds.
Read next
- 2 of 3 multisig: what happens when a key is lost or stolen.
- Open source hardware signers: devices for each key.
- How a transaction works: what the node checks and broadcasts.
- Sending bitcoin safely: address checks and test payments.
Sources
Primary sources only. Each link was checked on 5 November 2026. Rules change, so confirm the current version with your adviser.
- Bitcoin.orgRunning a full node: what a full node is, minimum requirements, bandwidth and pruning
- Bitcoin CoreLicence: MIT (COPYING)
- Sparrow WalletConnect Sparrow to Bitcoin Core
- Bitcoin BIPsBIP 380: Output script descriptors, general operation (wallet backups and exports)
- Bitcoin BIPsBIP 174: Partially Signed Bitcoin Transaction format (PSBT)
- Bitcoin CoreDownload Bitcoin Core and verify the release signatures
- RaspiBlitzProject README: a do-it-yourself bitcoin and Lightning node on a Raspberry Pi 4 or 5
- RaspiBlitzLicence: MIT
- RaspiBlitzDocumentation: how to build and set up a RaspiBlitz
- Start9StartOS repository: an open source Linux distribution for running a personal server
- Start9StartOS licence: MIT
- Start9Start9 documentation
- UmbrelumbrelOS repository: Umbrel Home or Pro hardware, or a free download for Intel or AMD machines, Raspberry Pi 5 or a virtual machine
- UmbrelLicence: PolyForm Noncommercial 1.0.0
- UmbrelLicence FAQ: personal and nonprofit use, and who to ask about other uses
- Bitcoin CoreTor support in Bitcoin Core (doc/tor.md)
One email. The whole library.
Policy checklist, board paper, recovery drill record, document pack and the rest, in one send. Then one short Thursday lesson for small companies in the UK and the US.
Free. One email with the whole template library, then one short lesson each Thursday. Unsubscribe at any time. See our privacy notice.
This is general information and education only. It is not financial, investment, tax, accounting, legal or regulatory advice, and it is not a recommendation to buy, sell or hold bitcoin or any other asset. It does not take account of your circumstances or those of your company. You must obtain your own official professional advice to confirm this information is correct before acting on it.
Rules change. This information is correct to our understanding at the last-reviewed date, but it may be incomplete or out of date, and official sources take precedence. Bitcoin is volatile. A company that buys it could lose some or all of the money it puts in.
Using this site does not create an adviser or client relationship. IoT Financial is not authorised or regulated by the Financial Conduct Authority (FCA) and is not registered with the US Securities and Exchange Commission (SEC) as an investment adviser. Read the full disclaimer.