What is the importance of running a node?

Running a node in the Bitcoin network primarily serves the purpose of verifying the authenticity of received Bitcoin, ensuring that it is indeed real without relying on third-party attestations. This method of verification stands in contrast to trusting external entities, which although often effective, does not provide the same level of certainty. A notable instance highlighting the significance of running a node occurred during the late 2017 split with Bitcoin Cash. This event led to confusion among users who relied on non-full-node clients, as they had to inquire about the supported chain from their wallet software developers. The lack of direct control over this verification process resulted in financial losses for some due to the ensuing confusion regarding the true identity of Bitcoin.

Besides the critical aspect of authenticating real Bitcoin, running a node offers several secondary benefits that might be pivotal depending on an individual's specific needs. Among these advantages, the enhancement of privacy stands out. Specifically, broadcasting transactions becomes significantly more private, and querying addresses for balances can be done with absolute confidentiality. These aspects underscore the importance of running a node beyond its primary function, especially for those prioritizing privacy in their transactions and interactions within the Bitcoin network.