Once you've set up your node and Electrum server using the guide that best fits your needs, we can now connect Sparrow wallet to the Electrum server. This will allow the wallet to quickly retrieve your transaction history, as all the blockchain data downloaded with your node has already been fully indexed.
An Electrum server, in this case Electrs, is a service that helps index the Bitcoin blockchain to make it easier and faster for lightweight wallets (like Sparrow wallet) to interact with the blockchain without needing to store the entire blockchain locally. The key function of indexation is what makes an Electrum server so useful, and here's why it's important:
There are several popular tools to help you set up a Bitcoin node, each with its own features and ease of use.
When running a Bitcoin node, there are two types of Tor connections to consider:
Before we dive into the technical details, let’s start with the basics.
"Below, you'll see why running your own Bitcoin node is essential for self-custody."