While the crypto segment is recovering from Crypto Winter of 2021-2022; more and more impressive narratives are gaining traction in Web3. In this text, we’re going to cover some eccentric and productive use cases blockchain nodes can fuel in 2023.

Crypto nodes and Web3: Basic use-cases in 2023

Initially, blockchain networks were only used for money transfers and for the exchange of information. As massive adoption of cryptocurrencies accelerates, more and more real-world applications of decentralized technologies become increasingly popular.

• Blockchain nodes can provide data storage, sharing, and transfer mechanisms to AI ecosystems of various types;
• Crypto nodes can supercharge decentralized finances primitives: lending protocols, stablecoins, decentralized exchanges, prediction pools, and so on;
• Crypto nodes serve as technical basis for non-fungible tokens (NFTs) infrastructure: marketplaces, auctions, custody tools;
• Since the inception of DLT as a technology in 2009, crypto nodes facilitate cost-efficient and censorship-resistant money transfer in various regions across the globe.

Also, crypto node provider can be used for confidential data transfer in permissioned networks, for decentralized identity solutions, for data verification, for supply chain management, etc.

Crypto nodes for AI

‘AI mania’ or ‘AI hype’ was triggered by the inception of  ChatGPT, a chatbot by the U.S. corporation OpenAI that mimics human conversation. Dozens of crypto tokens immediately rocketed in price thanks to being somehow associated with this or that aspect of AI/ML/ Big Data narrative.

However, crypto nodes can help in AI progress even without marketing hype. For instance, distributed ledger technology enables secure and decentralized data sharing, which can be particularly useful in the context of AI. By using crypto nodes, AI researchers and developers can collaborate and share data without worrying about data privacy and security issues.

They can also be used to store large amounts of data in a secure and decentralized way. This can be particularly useful in AI applications where large amounts of data are required for training and analysis.

Blockchain nodes can be used to deploy and run AI models in a decentralized manner. This can provide a number of benefits, such as increased security, scalability, and transparency. Last but not the least, they can be used to tokenize AI models, allowing developers to monetize their work and create new business models. By using tokens to represent AI models, developers can also enable greater interoperability and accessibility across different platforms and applications.

Crypto nodes for DeFi

Since the 2020 DeFi Summer, on-chain financial applications changed the narrative in global finances. Proper crypto node provider fuels the technical designs of DeFi apps: nodes are responsible for processing transactions and adding new blocks. Here are some examples of what crypto nodes mean for the DeFi segment.

1. Decentralized governance. DeFi protocols use blockchain nodes to enable decentralized governance. Token holders can vote on decisions related to the protocol, such as changes to the protocol's parameters or the addition of new features. This allows the community to have a say in the direction of the protocol and ensures that decisions are made in a decentralized and transparent way.

2. Smart contract execution. DeFis rely on smart contracts to automate and execute financial transactions. These smart contracts are executed by nodes, which ensures that they are executed correctly and without the need for intermediaries.

3. Liquidity provision. Many DeFi protocols rely on liquidity provision to ensure that there is sufficient liquidity for users to trade and borrow on the platform. Liquidity providers can earn rewards for providing liquidity, which is facilitated by blockchain nodes.

4. Interoperability. Major DeFis are designed to be interoperable with other DeFi protocols. Nodes can help to facilitate this interoperability by enabling cross-chain transactions and communication between different protocols.

In general, crypto nodes are responsible for ‘De’ in ‘DeFi’: without them, all DeFi protocols would be just centralized payment apps.

Crypto nodes for NFTs

Crypto nodes are involved in all phases of the lifecycle of every non-fungible token (NFT). Regardless of the type of the network, 100% of economical and technical operations with NFTs require sending the requests to blockchain nodes.

First, NFTs are created by deploying smart contracts on blockchain nodes. These smart contracts define the unique characteristics and ownership of the NFTs and ensure that they are unique and cannot be replicated. Once the smart contract is deployed, the NFTs can be minted and assigned to their owners.

Then, NFTs are stored on a blockchain node in a decentralized and secure way. This ensures that the NFTs are not subject to censorship or manipulation and that their ownership is protected.

Once minted, NFTs can be traded on blockchain nodes through decentralized marketplaces. These marketplaces allow buyers and sellers to trade NFTs directly without the need for intermediaries. This ensures that the ownership of NFTs is transferred in a secure and transparent way.

Crypto nodes are used to verify the ownership of NFTs. Each NFT is associated with a unique identifier that can be used to verify the ownership of the NFT. This ensures that the NFTs are authentic and that their ownership is not in dispute.

Crypto nodes for cross-border payments

Cross-border money transfers can be complex and expensive due to the involvement of multiple financial institutions, regulatory requirements, and currency exchange rates. Crypto nodes can simplify and reduce the costs of cross-border money transfers by providing a decentralized and secure way to transfer funds.

When someone wants to send money across borders, they typically need to go through a financial institution or a money transfer service. These intermediaries charge fees for their services and may take several days to process the transfer. Additionally, the currency exchange rates used by these intermediaries may not always be favorable, resulting in the sender and receiver losing money in the process.

Crypto nodes, on the other hand, enable peer-to-peer transactions without intermediaries. They allow people to send and receive money directly without needing a middleman, reducing the fees and processing times associated with traditional cross-border money transfers. 

Closing thoughts

Crypto nodes (blockchain nodes, blockchain RPC nodes) can on-board various applications including DeFis, NFT protocols, Play-to-Earn ecosystems, money transfer instruments. In all cases, nodes are responsible for sending information, retrieving the data and validating its integrity and authenticity.