All bitcoin wallet software must use a node to verify and broadcast transactions. When you first run a bitcoin wallet software, it uses a PUBLIC node to verify every transaction in your wallet. This is a privacy issue because now that public node has logs that your IP address (which may not initially seem that bad) has this bitcoin wallet, now knows how much bitcoin you have and what your previous and next bitcoin addresses are of your wallet. Not only that, but you have no control over that public bitcoin node which means they determine which version of the Bitcoin blockchain you’re interacting with. By running your own node, you can ensure you’re following the rules and software version you trust. For instance, if a contentious update or fork occurs in the network, your node will adhere to the version you choose.
Don’t Trust; Verify
By running your own node, and using it with your Bitcoin software, you can broadcast your transactions directly to the Bitcoin network, reducing the risk of surveillance or data breaches. This is particularly valuable in an era where digital privacy is increasingly important.
Running a node allows you to independently verify all Bitcoin transactions and blocks. This is crucial because it ensures you don’t have to trust third-party intermediaries, such as wallet providers or exchanges, to validate the legitimacy of transactions. For example, if someone claims they’ve sent you Bitcoin, your node can confirm this directly from the blockchain without relying on external services.
Check your wallet software for the ability to change which node it connects to. It is usually in Settings under Network or Server. Change this to your own private node.