A node is one of the computers that runs the blockchain's software to verify and preserve the whole history of transactions on the network. In computer science, a node is literally a mechanism that plays a part in a larger network. The way a node works is that they record every transaction that has ever taken place on a certain blockchain. These recorded transactions are then stored on the various nodes of the blockchain and are submit for verification. The data is distributed and replicated across these nodes, allowing that blockchain to continue functioning in a decentralised manner.

Unlike regular nodes, master nodes do not submit new blocks for network verification. Instead, they validate new blocks of transactions in a cryptocurrency. The operators should own a considerable quantity of the cryptocurrency since master nodes function on a collateral-based mechanism. Master node operators receive guaranteed cryptocurrency returns, often a portion of their share, in return for their time and financial investment.

Full nodes are essential for a cryptocurrency to remain operational. Each full node maintains a complete copy of the blockchain's transaction history and sends new blocks of transactions to other nodes for validation. Before a new block of transactions is added to the permanent ledger, all the other nodes including regular and master nodes have to validate the transactions for each new block that is presented.