Geth is a Go-based Ethereum client. As a result, a machine that is running Geth becomes an Ethereum node. In the peer-to-peer Ethereum network, data is shared directly between nodes as opposed to being controlled by a central server. Because they are compensated in ether, Ethereum’s native token, nodes compete to create fresh blocks of transactions to deliver to their peers (ETH).
Each node verifies a new block to ensure it is legitimate before storing it in its database. Chain is the term used to describe the arrangement of distinct units. Geth uses the data in each block to update its “state,” or the ether balance of each Ethereum account.