How to Set Up and Maintain a Bitcoin or Litecoin Full Node on Ubuntu: A Comprehensive Guide

Running a full node is a significant way to support the Bitcoin or Litecoin networks, helping to validate and relay transactions while maintaining the blockchain’s decentralization. A full node downloads and stores the entire blockchain and requires adequate resources to run efficiently. This guide walks you through setting up and maintaining a Bitcoin or Litecoin full node on Ubuntu.

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Why Run a Bitcoin or Litecoin Full Node?

Benefits of Running a Full Node

• Support the Network: Contribute to the decentralization and reliability of the cryptocurrency ecosystem.
• Security: Verify your transactions independently without relying on third parties.
• Privacy: Reduce the need to trust centralized services that could compromise your data.
• Contribute to Decentralization: Full nodes help prevent centralization by increasing the number of independent nodes validating transactions.

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System Requirements

Running a full node requires adequate hardware and bandwidth. Here are the recommended specifications:

Bitcoin Full Node

• Storage: At least 500 GB of free disk space (as of 2024). More is recommended for future growth.
• RAM: Minimum 2 GB.
• CPU: Dual-core processor or better.
• Bandwidth: At least 50 GB/month for uploads and 10 GB/month for downloads.

Litecoin Full Node

• Storage: At least 50 GB of free disk space (as of 2024).
• RAM: Minimum 1 GB.
• CPU: Any modern processor.
• Bandwidth: Similar to Bitcoin, but slightly lower.

Ensure your internet connection is stable and has no data caps.

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Step 1: Update and Prepare Your Ubuntu System

Update the System

Run the following commands to ensure your system is up to date:

sudo apt update && sudo apt upgrade -y

Install Required Dependencies

sudo apt install wget curl tar -y

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Step 2: Install Bitcoin Core or Litecoin Core

Both Bitcoin and Litecoin offer official full node software.

Download Bitcoin Core

1. Visit the official Bitcoin Core website to find the latest version.
2. Use wget to download the tarball: wget https://bitcoin.org/bin/bitcoin-core-24.0.1/bitcoin-24.0.1-x86_64-linux-gnu.tar.gz
3. Extract the tarball: tar -xvf bitcoin-24.0.1-x86_64-linux-gnu.tar.gz
4. Move the binaries to /usr/local/bin: sudo mv bitcoin-24.0.1/bin/* /usr/local/bin/

Download Litecoin Core

1. Visit the official Litecoin website for the latest version.
2. Use wget to download the tarball: wget https://download.litecoin.org/litecoin-0.21.2.2-x86_64-linux-gnu.tar.gz
3. Extract the tarball: tar -xvf litecoin-0.21.2.2-x86_64-linux-gnu.tar.gz
4. Move the binaries to /usr/local/bin: sudo mv litecoin-0.21.2.2/bin/* /usr/local/bin/

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Step 3: Configure the Full Node

Create Configuration Files

Both Bitcoin and Litecoin require a configuration file in the ~/.bitcoin or ~/.litecoin directory, respectively.

Bitcoin Configuration

Create the directory: mkdir -p ~/.bitcoin

Create the configuration file: nano ~/.bitcoin/bitcoin.conf

Add the following content:

server=1

daemon=1

txindex=1

rpcuser=yourusername

rpcpassword=yourpassword

Save and exit (CTRL+O, CTRL+X).

Example of bitcoin.conf

Main settings

server=1 # Accept command line and JSON-RPC commands
daemon=1 # Run in the background as a daemon
txindex=1 # Maintain a full transaction index (useful for explorers)
rpcuser=yourrpcusername # RPC username
rpcpassword=yourrpcpassword # RPC password (choose a strong one)
rpcallowip=127.0.0.1 # Allow RPC connections only from localhost
rpcport=8332 # RPC port for Bitcoin Core
listen=1 # Accept connections from peers
port=8333 # Listening port for Bitcoin peer-to-peer connections
maxconnections=125 # Maximum number of inbound+outbound connections

Mining settings

gen=1 # Enable mining (set to 0 to disable)
genproclimit=-1 # Use all CPU cores for mining (-1 for unlimited)
blocknotify=/path/to/script.sh %s # Run a script when a new block is found

Network settings

onlynet=ipv4 # Use only IPv4 (options: ipv4, ipv6, onion)
dnsseed=1 # Enable or disable DNS seeding
upnp=0 # Disable UPnP to prevent exposing the node to the local network
proxy=127.0.0.1:9050 # Use Tor proxy for all network connections
bind=127.0.0.1 # Bind to localhost only
externalip=your.onion.address.onion # Advertise your Tor hidden service address

Node behavior

banscore=100 # Ban threshold for misbehaving nodes
bantime=86400 # Ban time (in seconds)
minrelaytxfee=0.00001 # Minimum transaction fee for relaying

Logging

debug=net # Enable network debugging
logtimestamps=1 # Include timestamps in log entries

Performance

dbcache=2048 # Set the database cache size in megabytes
maxmempool=300 # Limit memory usage for the mempool in MB

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Litecoin Configuration

Create the directory: mkdir -p ~/.litecoin

Create the configuration file: nano ~/.litecoin/litecoin.conf

Add the following content:

server=1

daemon=1

txindex=1

rpcuser=yourusername

rpcpassword=yourpassword

Save and exit.

Example of litecoin.conf

Main settings

server=1 # Accept command line and JSON-RPC commands
daemon=1 # Run in the background as a daemon
txindex=1 # Maintain a full transaction index
rpcuser=yourrpcusername # RPC username
rpcpassword=yourrpcpassword # RPC password (choose a strong one)
rpcallowip=127.0.0.1 # Allow RPC connections only from localhost
rpcport=9332 # RPC port for Litecoin Core
listen=1 # Accept connections from peers
port=9333 # Listening port for Litecoin peer-to-peer connections
maxconnections=125 # Maximum number of inbound+outbound connections

Mining settings

gen=1 # Enable mining (set to 0 to disable)
genproclimit=-1 # Use all CPU cores for mining (-1 for unlimited)
blocknotify=/path/to/script.sh %s # Run a script when a new block is found

Network settings

onlynet=ipv4 # Use only IPv4 (options: ipv4, ipv6, onion)
dnsseed=1 # Enable or disable DNS seeding
upnp=0 # Disable UPnP to prevent exposing the node to the local network
proxy=127.0.0.1:9050 # Use Tor proxy for all network connections
bind=127.0.0.1 # Bind to localhost only
externalip=your.onion.address.onion # Advertise your Tor hidden service address

Node behavior

banscore=100 # Ban threshold for misbehaving nodes
bantime=86400 # Ban time (in seconds)
minrelaytxfee=0.00001 # Minimum transaction fee for relaying

Logging

debug=net # Enable network debugging
logtimestamps=1 # Include timestamps in log entries

Performance

dbcache=1024 # Set the database cache size in megabytes
maxmempool=150 # Limit memory usage for the mempool in MB

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Step 4: Start the Full Node

Start Bitcoin Core

Run Bitcoin Core in daemon mode:

bitcoind -daemon

Start Litecoin Core

Run Litecoin Core in daemon mode:

litecoind -daemon

Verify the Node is Running

Use the following commands:

• For Bitcoin: bitcoin-cli getblockchaininfo
• For Litecoin: litecoin-cli getblockchaininfo

You should see information about the blockchain, including synchronization status.

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Step 5: Enable Firewall Rules

Protect your node by configuring the firewall to allow only required ports:

• Bitcoin: 8333
• Litecoin: 9333

Allow Ports

sudo ufw allow 8333/tcp  # For Bitcoin
sudo ufw allow 9333/tcp  # For Litecoin
sudo ufw enable

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Step 6: Synchronize the Blockchain

Synchronization can take several days, depending on your hardware and internet speed. Monitor the progress with:

bitcoin-cli getblockcount  # For Bitcoin
litecoin-cli getblockcount # For Litecoin

Compare the output with the latest block height on blockchain explorers like Blockchain.com or Litecoin Block Explorer.

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Step 7: Maintaining Your Node

Regular Updates

Update your node software regularly to ensure security and compatibility:

sudo apt update && sudo apt upgrade -y

Monitor Logs

Check logs for any issues:

tail -f ~/.bitcoin/debug.log  # Bitcoin
tail -f ~/.litecoin/debug.log # Litecoin

Backup Data

Backup the wallet.dat file regularly:

cp ~/.bitcoin/wallet.dat /path/to/backup/  # Bitcoin
cp ~/.litecoin/wallet.dat /path/to/backup/ # Litecoin

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Step 8: Tips for Server Hardening

• SSH Security: Disable root login and change the SSH port. sudo nano /etc/ssh/sshd_config
• Fail2Ban: Install and configure Fail2Ban to block brute-force attacks. sudo apt install fail2ban -y
• Use Tor: Run your node behind Tor for enhanced privacy. sudo apt install tor -y (Detailed step by step guide in our article here)

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Conclusion

Setting up and maintaining a Bitcoin or Litecoin full node on Ubuntu is a rewarding way to contribute to blockchain networks while gaining greater control over your cryptocurrency interactions. By following this detailed guide, you can configure a reliable, secure node and ensure its longevity with proper maintenance. Always stay updated with the latest best practices to optimize performance and security.