Blog/Article
How bare metal servers provide the security blockchain needs
Blockchain is one of the most revolutionary technologies of recent times, and bare metal servers are crucial for enhancing its security and performance.
In a blockchain network, each node must operate with speed, efficiency, and complete isolation to prevent interference and ensure data integrity.
Bare metal servers provide the dedicated resources and uncompromising control needed to meet these demands.
Summary
By the end of this article, you'll understand how blockchain benefits from bare metal servers—and why they might be the key to achieving better performance at lower costs.
What is blockchain?
Blockchain is a decentralized and secure method of storing and processing data without relying on a central authority, such as a bank, government, or private institution.
Instead of a single entity controlling the data, blockchain operates on a distributed ledger system, where information is recorded across a network of independent nodes.
Each transaction or data entry is cryptographically secured and linked to the previous one, forming a chain of blocks—hence the name "blockchain."
Once recorded, data cannot be altered or deleted, ensuring transparency, security, and resistance to fraud or tampering.
To better understand this, imagine a shared notebook where multiple people can write entries, but no one can erase or modify past entries.
Every time a new page is added, it's permanently attached to the previous pages, creating a chronological and unchangeable record.
Since everyone in the group has a copy, if one person tries to cheat by altering a page, the others will immediately notice and reject the change.
Blockchain technology enables trustless transactions, meaning participants can interact directly without the need for an intermediary to verify or approve their actions.
This is what makes cryptocurrencies like Bitcoin and Ethereum possible: instead of a bank keeping track of balances and transactions, the blockchain itself serves as a public, secure record that everyone can trust.
Beyond cryptocurrency, blockchain has applications in many industries. For example:
Supply Chains: A company can use blockchain to track products from the factory to the store, ensuring authenticity and preventing fraud.
Healthcare: Medical records stored on a blockchain ensure that patients and authorized doctors have secure and tamper-proof access.
Voting Systems: Blockchain can help create transparent and verifiable elections, preventing manipulation.
In short, blockchain is like a digital logbook shared by thousands of people. Every entry is permanent, transparent, and secure.
By eliminating the need for intermediaries, it makes transactions and data management more efficient, trustworthy, and resistant to manipulation.
What is a node in blockchain?
A node in blockchain is any computer or device that participates in the blockchain network by storing, verifying, or transmitting data.
Since blockchain is decentralized, no single server or authority controls it. Instead, multiple nodes work together to maintain the integrity and security of the blockchain.
Each node contains a copy of the blockchain ledger, which records all transactions that have ever occurred on the network.
When a new transaction occurs, nodes communicate with each other to verify its authenticity before adding it to the chain. This process ensures transparency, security, and resistance to tampering.
To better understand, imagine a group project in a shared document where every team member has their own copy. Whenever someone makes an update, all copies are synchronized.
If someone incorrectly updates past information, the others can reject the false update, keeping the document accurate and trustworthy.
There are different types of nodes in a blockchain network, including:
Full Nodes: These store the entire blockchain history and are responsible for verifying and enforcing rules. They help keep the network secure and independent.
Mining Nodes: Found in proof-of-work blockchains (like Bitcoin), mining nodes compete to solve complex mathematical problems to validate transactions and add new blocks.
Light Nodes: These store only a portion of the blockchain, the block headers, and rely on full nodes for verification, making them more lightweight and suitable for devices with limited resources.
Archive Nodes: These nodes store the complete history, including all historical states.
Nodes are the backbone of blockchain technology. They ensure that no single entity controls the network and that transactions remain secure, verifiable, and decentralized.
How does a blockchain achieve consensus?
Blockchain's decentralized nature—where no single authority oversees transactions—requires a mechanism for participants to agree on which transactions are valid.
Without such a system, anyone could introduce false transactions, duplicate cryptocurrency, or manipulate records. The process that ensures this agreement is called consensus.
Imagine a group playing an online game without a referee. If each player could set their own score, the game would descend into chaos.
Instead, they need a fair system where everyone agrees on the official score. Blockchain works the same way: all network computers (or nodes) must reach a shared agreement before adding new transactions to the digital ledger.
Common Consensus Mechanisms
Different blockchains use different methods to achieve consensus.
Proof of Work (PoW) – Solving Complex Puzzles
PoW, used by Bitcoin and formerly Ethereum, requires nodes (called miners) to compete in solving a complex mathematical puzzle.
The first miner to solve it earns the right to add the following block of transactions to the blockchain and receives cryptocurrency as a reward.
PoW is highly secure because solving the puzzle requires substantial computing power, making it difficult to manipulate the blockchain.
However, it is energy-intensive, as miners worldwide compete to solve puzzles, consuming vast amounts of electricity.
Proof of Stake (PoS) – A Lottery for Validators
To address PoW’s energy consumption, some blockchains (like Ethereum after its upgrade) use PoS. Instead of solving puzzles, participants "stake" (lock up) cryptocurrency as collateral.
The blockchain then randomly selects a staker to validate the next block. The more cryptocurrencies staked, the higher their chances of being chosen.
PoS is far more energy-efficient than PoW. Additionally, if a validator approves fraudulent transactions, they lose their staked coins—a penalty that discourages dishonesty and strengthens security or can even meet slashing conditions.
Delegated Proof of Stake (DPoS) – Voting for Representatives
DPoS, a variation of PoS, is used in blockchains like EOS and Tron. Instead of every staker participating directly, users vote for a small group of delegates who validate transactions on their behalf.
This method is fast and efficient, but since only a handful of delegates control validation, it is less decentralized, making it more vulnerable to centralization risks.
Practical Byzantine Fault Tolerance (PBFT) – Preventing Dishonest Nodes
PBFT is used in private and consortium blockchains (such as Hyperledger) and ensures network stability even if some nodes are unreliable or malicious.
Before validating transactions, more than just the majority of trusted participants are required. It requires approximately 2/3 agreement, specifically 2f+1 out of 3f+1 nodes, where f is the number of potentially faulty nodes.
PBFT enables fast decision-making and is ideal for permissioned blockchains, where participants are known and vetted.
Why Is Consensus Important?
Consensus mechanisms ensure that blockchain networks remain:
Secure: Preventing fraud and unauthorized modifications.
Consistent: Keeping all copies of the blockchain identical across thousands of nodes.
Decentralized: Enabling trustless transactions without a central authority.
Without consensus, blockchains would be unreliable and chaotic, with multiple conflicting transaction histories.
Consensus mechanisms guarantee that all participants follow the same rules, allowing blockchain to function as a secure, transparent, and decentralized system.
What are bare metal servers?
Bare metal servers are physical machines dedicated entirely to a single client or application.
Unlike virtualized servers, where multiple virtual machines share the same hardware resources, bare metal servers provide exclusive access to the physical server's computing power.
This means there is no shared resource allocation, allowing for better performance, more control, and greater security.
In simpler terms, imagine you’re renting an entire office space rather than just a desk in a shared co-working area.
With a bare metal server, you own the entire physical server—your company doesn't have to share it with anyone else, so you can configure it exactly as needed.
Why Are Bare Metal Servers Important?
Bare metal servers provide several key advantages that can be crucial for particular business needs.
Performance
Since you have exclusive access to the server’s hardware, you don’t have to share its processing power, memory, or storage with anyone else.
This translates to faster speeds and better overall performance, especially for demanding applications like blockchain, big data processing, and high-traffic websites.
Security
With a bare metal server, you are the only one using the hardware, so there is no risk of cross-contamination from other tenants.
This isolation reduces potential vulnerabilities or breaches, which is especially valuable for sensitive operations like processing financial transactions or handling confidential data.
Customization
Bare metal servers allow you to control their configuration fully. You can choose the operating system, software, and network settings that best suit your needs.
Whether you need specific hardware components, more storage, or certain security protocols, you can create a setup that perfectly meets your business requirements.
Reliability
Without the overhead of virtualization, bare metal servers are typically more reliable, providing consistent performance without the risk of "noisy neighbors" or resource contention that can affect virtualized environments.
In short, bare metal servers are ideal for companies that need high performance, customization, and security.
While cloud servers offer flexibility and scalability, bare metal servers deliver superior performance and control that are hard to match, making them an excellent choice for high-demand applications.
How can bare metal servers help the blockchain?
Bare metal servers play a critical role in optimizing blockchain operations.
Blockchain technology relies on performance, security, and stability, and bare metal servers can provide the proper infrastructure to meet these needs more efficiently than virtualized solutions.
While Blockchain nodes must process vast amounts of data quickly to maintain the integrity and speed of the network, bare metal servers offer dedicated hardware resources. There are no shared CPU, RAM, or storage, which can bottleneck performance in virtualized environments.
This exclusivity ensures that blockchain transactions are processed faster, leading to higher throughput and reduced latency—critical for handling real-time blockchain data and preventing delays that could disrupt the entire network.
Increased Network Stability and Reduced Risk of Downtime
Uptime is critical in blockchain. A single node going down or becoming sluggish can affect the integrity of the whole chain.
Bare metal servers ensure reliable, consistent performance because they are not interfered with by other virtualized environments running on the same physical server.
This stability is especially crucial for blockchain networks that rely on continuous, uninterrupted operations for mining, validating transactions, and maintaining consensus.
Superior Security and Isolation
Security is paramount in blockchain operations, especially considering how sensitive financial and transaction data can be.
Bare metal servers provide a higher isolation level than virtualized environments, where the risk of cross-tenant vulnerabilities exists.
In blockchain applications, where data integrity is crucial, the dedicated nature of bare metal servers reduces the risk of external threats or attacks, such as double-spending or Sybil attacks.
Furthermore, blockchain nodes on bare metal servers can implement custom security protocols or configurations tailored to the specific needs of the blockchain system.
Scalability and Customization for Blockchain Nodes
Blockchain systems often require specialized configurations depending on the type of network (public or private) or the consensus mechanism (like Proof of Work or Proof of Stake).
Bare metal servers allow for the customization of server resources, such as adjusting the number of cores, memory, and storage to meet the unique demands of the blockchain platform.
For example, blockchain nodes involved in mining require high computational power, which bare metal servers can efficiently provide without virtualization overhead.
The ability to scale hardware resources up or down based on network demand is a significant advantage in the dynamic blockchain ecosystem.
Efficient Resource Allocation for Blockchain Applications
In blockchain systems, nodes often perform resource-intensive tasks like validating transactions, executing smart contracts, or maintaining a copy of the entire blockchain ledger.
Bare metal servers allow companies to allocate dedicated resources precisely where needed.
This leads to optimal performance during peak periods, such as when large volumes of transactions are being processed or adding new blocks.
Without sharing resources with other applications, these tasks can be completed faster and more efficiently, minimizing delays and potential errors.
Long-Term Stability for Blockchain Networks
Blockchain networks, particularly those designed for large-scale applications (such as decentralized finance or supply chain management), require long-term reliability to build trust and avoid disruptions.
With bare metal servers, businesses can deploy systems designed for optimal performance and long-term sustainability.
Unlike cloud solutions, which might be subject to unforeseen changes in resource allocation or pricing models, bare metal servers offer fixed, predictable costs and stability. This makes them ideal for blockchain applications that need to scale and grow over time.
Blockchain and Latitude.sh
Latitude.sh has proven to be a reliable partner for Web3 companies and blockchain projects, offering robust, cost-effective infrastructure.
With customers like xLabs and eOracle, Latitude.sh demonstrates its ability to deliver high-performance, scalable solutions that meet the unique demands of the blockchain ecosystem.
Unlike traditional cloud services, which often result in unpredictable costs, Latitude.sh’s bare metal servers provide a transparent pricing model that helps companies like eOracle better manage their infrastructure expenses.
By shifting to Latitude.sh, eOracle has significantly reduced costs while gaining access to faster, more powerful NVMe drives, which are crucial for demanding blockchain operations.
For many Web3 companies like xLabs, reliable uptime and responsive support are essential. With a 100% uptime and 0% skip rate for block creation in nodes hosted at Latitude.sh, xLabs has experienced the reliability to ensure smooth blockchain operations.
Overall, Latitude.sh’s commitment to providing cutting-edge technology and global accessibility makes it a trusted partner for many blockchain projects.
By offering the power, stability, and support needed to thrive in a decentralized world, Latitude.sh has become the go-to provider for Web3 nodes, regardless of the node purpose or blockchain.
Are you ready to harness the power of bare metal to excel in the blockchain world? Get started at Latitude.sh today.