Bitcoin Node Setup on AWS Linux Server

 

Introduction

A Bitcoin node is a computer program that connects to the Bitcoin network, verifies transactions, and maintains a copy of the blockchain. Running a Bitcoin node on an AWS Linux server allows for a secure and reliable way to access the Bitcoin network, without having to store the entire blockchain on your local computer.

Setting Up a Bitcoin Node on the AWS Linux Server

Step 1: Launch an AWS Instance

1. Log into your AWS account and navigate to the EC2 service.
2. Click on “Launch Instance” to start the instance creation process.
3. Choose an Amazon Machine Image (AMI) — select “Amazon Linux 2 AMI”.
4. Choose an instance type — select “t2.micro” for a cost-effective option.
5. Click “Next: Configure Instance Details” to proceed.
6. Leave the default settings on the Configure Instance Details page and click “Next: Add Storage”.
7. Leave the default settings on the Add Storage page and click “Next: Add Tags”.
8. Add any tags that you want to identify your instance with, then click “Next: Configure Security Group”.
9. Set up a new security group by clicking “Create a new security group”.
10. Add a rule to allow inbound traffic for ports 22 (SSH) and 8333 (Bitcoin) from any source, then click “Review and Launch”.
11. Review the instance details and click “Launch”.
12. Select an existing key pair or create a new one, then click “Launch Instances”. This will download a .pem file which you will need to access your instance.
13. Once the instance is launched, note down the public IP address for later use.

Step 2: Install and Configure Necessary Software

1. Open your terminal and navigate to the directory where the .pem file is located.
2. Change the permissions of the .pem file by using the command “chmod 400 [filename.pem]”.
3. Connect to your instance using SSH with the command “ssh -i [filename.pem] [user]@[public-ip]”.
4. Update the instance by running the command “sudo yum update”.
5. Install necessary software using the command “sudo yum install git nano screen python3 wget”.
6. Install Bitcoin Core using the command “sudo yum install bitcoin”. Note down the location where Bitcoin Core is installed.

Step 3: Set up Bitcoin Core on the AWS Linux Server

1. Create a new directory for Bitcoin Core using the command “mkdir ~/.bitcoin”.
2. Create a bitcoin.conf file using the command “nano ~/.bitcoin/bitcoin.conf”.
3. Copy and paste the following lines into the bitcoin.conf file:

rpcuser=[username]
  rpcpassword=[password]
  printtoconsole=1
  daemon=1
  dbcache=8000
  maxconnections=40
  maxuploadtarget=5000

4. Replace [username] and [password] with your desired username and password.

5. Save and close the file by pressing “Ctrl+X”, then “Y”.

6. Start Bitcoin Core by using the command “bitcoin-qt -regtest -daemon”.

Step 4: Configure the Node for Optimal Performance and Security

1. Open your browser and navigate to your instance’s public IP address with port 8332 at the end (e.g. http://[public-ip]:8332/).
2. You will be prompted to enter your username and password from the bitcoin.conf file.
3. Once logged in, go to the “Debug window” tab and select the “Console” tab.
4. Enter the command “addnode [ip or domain] add” to connect to other nodes in the network and increase connectivity.
5. Enter the command “settxfee [fee]” to set the transaction fee for your node.
6. Enable port forwarding on your router for port 8333 to ensure your node can be reached by other nodes in the network.
7. Configure your firewall to allow inbound traffic on port 8333 and 8332.
8. Monitor your node’s performance by using the command “getmininginfo” in the Console tab.
9. Keep your node secure by regularly updating the software and setting up secure passwords.

Congratulations, your Bitcoin node is now running on the AWS Linux server.